September 28, 2023

Top CD rates today, June 26, 2023

Rates on the country’s best certificates of deposit (CDs) continue to improve, with the number of options in our daily ranking of the best CDs paying out at least 5.35% rising to 15 today, up from 13 on Friday.

Yields on the best nationally available CDs have recently risen so high that we are shifting our focus to this 5.35% threshold rate from the 5.25% rate we previously reported on. The number of certificates paying at least 5.25% has risen from single digits in early May to 42 today, including an increase of seven in the past week.

The highest rate in any term remains 5.65% APY, available for a term of 9 months. But if you want to stretch a good rate (at least 5.00%) as far into the future as possible, there’s a 3-year CD that pays 5.13% APY, and a jumbo 4-year CD that pays 5.12% APY pay – you’ I need a $100,000 down payment.

Key learning points

  • Fifteen CDs in our daily ranking pay 5.35% APY or better, compared to 13 on Friday.
  • The best overall rate for all terms is still 5.65% APY, available on a 9 month CD.
  • If you want to secure a great rate far into the future, you can score 5.13% APY on a 3-year certificate or 5.12% on a jumbo 4-year certificate with a $100,000 deposit.
  • While the Fed decided to keep interest rates stable at its June 14 meeting, it has signaled that it is likely to raise rates later this year. A hike by the Fed, if any, would almost certainly push CD rates even higher than current record levels.
CD Terms Friday’s highest national rate Today’s highest national rate Change of the day (percentage points)
3 months 5.16% APY 5.16% APY No change
6 months 5.65% APY 5.65% APY No change
1 year 5.52% APY 5.52% APY No change
18 months 5.45% APY 5.45% APY No change
2 years 5.25% APY 5.25% APY No change
3 years 5.13% APY 5.13% APY No change
4 years 4.85% APY 4.85% APY No change
5 years 4.77% APY 4.77% APY No change
To view the top 15-20 nationwide rates for a specific time period, click on the desired term in the left column above.

Despite the suggestion that a larger deposit entitles you to a higher return, that’s not always the case for jumbo certificate rates, which often pay less than standard CDs. Today’s best jumbo deals, which typically require a down payment of $100,000 or more, beat the best standard rates in three-CD terms, but you can do just as well or better with standard CDs in the other five terms. So don’t forget to shop each type of CD before making a final choice.

Click the column headings above to see our lists of the highest paying CDs for bank, credit union and jumbo certificates.

Where will CD rates go this year?

The Federal Reserve has been on a mission for the past 15 months to combat decades of high inflation with aggressive increases in the federal funds rate, which have so far totaled 5.00%. With the deposit rate closely aligned with the Fed Funds rate, the Fed’s multiple hikes have pushed current savings and CD rates to their highest levels since 2007, creating a heyday for CD shoppers, as well as anyone cashing in. in a high-yield savings or money market account.

At its last meeting on June 14, the Fed held interest rates stable for the first time in 11 meetings. But Fed Chair Jerome Powell said last Wednesday that one or two additional rate hikes this year are still likely, and US Federal Reserve Governor Michelle Bowman reiterated that forecast on Thursday. “While tighter monetary policy has had some effect on economic activity and inflation so far, we see that core inflation has essentially leveled off since the fall of 2022.” As a result, she said, she believes “additional policy rate hikes will be necessary to bring inflation back to our target over time.”

It is overwhelmingly expected that any further rate hikes by the Fed will be in increments of at least 0.25%, meaning if one or two more hikes come, we could see a Fed Funds rate up to 0.50% higher than today . Even a 0.25% increase later this year would almost certainly drive up CD rates.

But a word of warning: there is never any guarantee of what moves the Fed will make, as every interest rate decision is based on current economic data and financial news. So while it is currently likely that the Fed will raise rates further, it is still possible that the Fed will back out of that plan. If that happened, it would mean today’s CDs are already at or near their peak rates, making them a good buy right now.

The next Fed meeting closes on July 26.

Note that the “top rates” listed here are the highest nationally available rates that Investopedia has identified in its daily rate survey of hundreds of banks and credit unions. This is very different from the national average, which includes all banks that offer a CD with that maturity, including many large banks that pay a pittance in interest. So the national averages are always quite low, while the top rates you can find by shopping around are often five, ten or even fifteen times that.

Disclosure of Rate Collection Methodology

Each business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers across the country and determines the daily ranking of the highest paying certificates in each major term. To be eligible for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD’s minimum initial deposit cannot exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association in order to become a member if you don’t meet other eligibility criteria (for example, you don’t live in a certain area or work in a certain type of job), we exclude credit unions whose donation requirement is $40 or more. Read our full methodology to learn more about how we choose the best rates.

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