CD rates, currently at record levels not seen in 20 years, remaining unchanged is a positive sign. Today, this means you can still receive 6.50% APY from the highest-paying Nationwide CD, 6.00% from two close contenders, or 5.75% to 5.80% from more than a dozen top-ranked choices.Thank you for reading this post, don't forget to subscribe!
The leading rate for all CD terms is a fixed 6.50% APY, provided by Financial Partners Credit Union on 8-month certificates that permit deposits amounting to a maximum of $5,000. If you would like to deposit more or increase your rate lock, you may consider Credit Human’s offer of 6.00% APY on a 12 to 17-month term of your choice or Sandia Area Federal Credit Union’s offering of 6.00% APY for a 13-month Certificate. Early withdrawal of up to half of your funds incurs no penalty.
major points to consider
- The top nationwide CD in our daily rankings offers 6.50% APY for an 8-month term, with a maximum deposit of $5,000.
- For larger deposits, the highest rate is 6.00% APY, available from two different credit unions for terms of 12-17 months.
- A total of 16 CDs pay 5.75% or more, an increase from nine at the beginning of October.
- Residents of five states can earn 6.25% APY with a top regional CD.
- The Federal Reserve is widely expected to keep interest rates steady next week, but there is a possibility of another rate hike in December or January.
Below, you will find special rates offered by our partners, followed by our complete ranking of the best CDs available nationwide.
Are you interested in securing a great rate for a long term? The best 2-year CD offers 5.60% APY. If that is still not enough time, you can lock in 5.37% APY for the next 30 months or 5.25% APY for 36 or 40 months. All three options can be found in our daily ranking of the finest 3-year-old CDs.
If you have the option to make a jumbo deposit of at least $100,000, you can increase your 2-year rate to 5.68% APY or your 30-month rate to 5.52% APY.
In a recent survey, nearly 1 in 5 Investopedia readers said they would choose a CD to keep a $10,000 windfall. With 18% of readers selecting CDs, they were the most preferred option, surpassing stocks, money market funds, and index funds.
To view the top 15-20 nationwide rates for any period, click on the desired duration in the top left column.
Nationwide CDs are not your sole choice. Occasionally, banks and credit unions serving select areas offer leading rates. While these areas are sometimes small, one highly competitive CD at 6.25% APY is available to anyone living in one of five fortunate states.
*Represents the highest APY offered for each period. To see our list of the best-paying CDs for banks, credit unions, and jumbo certificates, click on the column headers above.
Note that although jumbo CDs typically offer higher returns than standard certificates, this is not always the case. Sometimes, a standard CD can yield just as good or even better results. Currently, this applies to six of the eight conditions mentioned above, so it is wise to compare both certificate types before making a final decision.
How High Will CD Rates Increase This Year?
Since March of last year, the Federal Reserve has been aggressively combating decades-high inflation by incrementally raising the federal funds rate. In 2022, the rate increased significantly, followed by a more moderate increase in 2023. The Fed has implemented 11 increases in its 13 meetings, resulting in a cumulative increase of 5.25%. This has created favorable rate conditions for CD buyers as well as those holding cash in high-yield savings or money market accounts.
The next two-day meeting of the Fed concludes on November 1, and financial markets overwhelmingly expect interest rates to remain stable. One possible scenario is that this pause will become permanent. In recent weeks, several Fed members have indicated that the committee’s rate-hike campaign has reached its conclusion, and this sentiment has been reiterated by another Fed member on October 16.
However, in recent comments, Fed Chairman Jerome Powell reiterated the central bank’s commitment to bringing inflation back to its 2% target, indicating that the door is still open to future rate increases. Powell stated that the current inflation rate of 3.5% is still too high, and thus, the committee will proceed cautiously, closely monitoring new economic data as it becomes available.
As a result, CME Group’s FedWatch tool shows that markets are currently pricing in a 25-30% chance of another rate hike being announced at the Fed’s December or January meeting.
As we always caution, placing excessive reliance on Fed rate predictions in the coming weeks or months is unwise, as the economic landscape can change rapidly – and the Fed’s course can change along with it. So, while rates appear to be stabilizing for now, only time will reveal whether future rate hikes are on the horizon. This, in turn, will determine if CD rates have reached their peak or can still climb a bit higher.
Note that the “top rates” mentioned in this article are the highest rates available nationally, as identified by Investopedia’s daily rate research on hundreds of banks and credit unions. This is vastly different from the national average, which includes all banks offering CDs of that term, including many larger banks that pay significantly lower interest. Therefore, the national average is consistently much lower, while the highest rates achievable through comparison shopping are often five, ten, or even fifteen times higher.
Rate Collection Method Disclosure
Each business day, Investopedia gathers rate data from over 200 banks and credit unions that offer CDs to customers nationwide. A daily ranking of the highest-paying certificates in each major term is then determined. To be featured on our list, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD’s minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. While some credit unions may require you to make a donation to a specific charity or association to become a member, we exclude credit unions with donation requirements of $40 or more if you do not meet other eligibility criteria (e.g. residency or employment requirement). Read our complete methodology for more details on how we select the best rates.
Investopedia / Alice Morgan