The sun continues to shine for CD buyers. Not only is the nation-leading rate of 6.00% APY still available, as well as the runner-up rate of 6.00% APY – but a new contender has entered the inner circle of CDs offering 5.75% APY or higher , which is at that number. High paying club up to 15.Thank you for reading this post, don't forget to subscribe!
Seattle Bank joins the elite 5.75% group today, offering 5.80% APY on 18-month CDs. This also makes it the longest-term CD paying at least 5.75% APY. Meanwhile, Financial Partners Credit Union still tops our daily ranking with a historically high 6.50% APY on an 8-month certificate of deposit. till $5,000. And Credit Human’s Choose Your Term 12-17 Month CD continues to offer 6.00% APY.
- Leading our daily ranking of the best Nationwide CDs remains at 6.50% APY, available on 8-month terms, but with a Maximum Deposit of $5,000.
- For deposits over $5,000, you can earn the top rate of 6.00% APY on any term of your choice between 12 to 17 months.
- A total of 15 CDs will now pay rates of 5.75% or better, up from nine at the beginning of October.
- Buyers in five states can earn 6.25% APY with a top regional CD.
- The Fed is widely expected to keep interest rates steady on Nov. 1, but another rate hike in December or January is possible.
Below you’ll find special rates available from our partners, followed by our full ranking of the best CDs available nationwide.
Do you want to lock in a great rate for a long term? The top 2-year CD is paying 5.60% APY, a rate increase that was unveiled last week. If that’s still not enough time, you can secure 5.32% APY for the next 30 months, or 5.25% APY for 36 or 40 months. All three can be found in our daily ranking of the best 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 5.63% APY or your 30-month rate to 5.47% APY.
When asked where they would keep a $10,000 windfall, nearly 1 in 5 Investopedia readers recently surveyed said they would choose a CD. Chosen by 18% of readers, CDs were the most popular response, beating out stocks, money market funds, and index funds.
To view the top 15-20 nationwide rates over any period, click on the desired period length in the top left column.
Nationwide CDs aren’t your only option. Leading rates are sometimes offered by banks and credit unions serving select areas. While these areas are sometimes small, one particularly competitive CD – paying 6.25% APY – is available to anyone living in one of five lucky states.
*Reflects the highest APY offered in each period. To see our list of top-paying CDs for banks, credit unions and jumbo certificates, click on the column headers above.
Note that there are no jumbo CDs Always Pay higher returns than standard certificates. Sometimes you can do just as well—or even better—with a standard CD. This is currently the case for six of the eight conditions above, so it’s smart to shop around for both certificate types before making a final decision.
How high will CD rates go this year?
The Federal Reserve has been aggressively combating decades-high inflation since March last year, raising the federal funds rate with a fast and furious increase in 2022 and then a more moderate increase in 2023. With its most recent hike on July 26, the Fed has implemented 11 increases in 13 meetings, a cumulative increase of 5.25%. This has created favorable rate conditions for CD buyers as well as anyone holding cash in a high-yield savings or money market account.
The Fed’s next two-day meeting ends on November 1 and financial markets are overwhelmingly expecting the Fed to keep rates steady again. One possibility is that the pause will become permanent, as several Fed members have indicated in recent weeks that they feel the committee’s rate-hike campaign has reached its end, with another Fed member echoing that sentiment on Monday. repeated.
But in comments yesterday, Fed Chairman Jerome Powell reiterated the central bank’s commitment to getting inflation back to its 2% target, signaling that the door is still open to future rate hikes. Powell said current inflation at 3.5% is still too high and so the committee will take a cautious approach, carefully monitoring new economic data as it becomes available.
As a result, CME Group’s FedWatch tool shows that markets are currently pricing in about 30% odds that another hike will be announced at the Fed’s December or January meeting.
As we always caution, predicting a Fed rate cut several weeks or months out is an imperfect exercise, as the economic landscape can change rapidly and potentially alter the Fed’s course. So while rates appear to be stabilizing for now, only time will tell if future rate hikes are still on the horizon. And that, in turn, will determine whether CD rates have reached their peak or may still be a little higher.
Note that the “top rates” quoted here are the highest rates available nationally that Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is very different from the national average, which includes all banks offering CDs with that term, including many of the larger banks that pay much less in interest. Thus, the national average is always quite low, while the top rates you can get by shopping around are often five, 10 or even 15 times higher.
Rate Collection Method Disclosure
Each business day, Investopedia tracks rate data from more than 200 banks and credit unions that offer CDs to customers across the country and determines a daily ranking of the top-paying certificates in each major period. To qualify for our list, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial deposit amount of the CD must not 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 to become a member if you don’t meet other eligibility criteria (for example, you don’t live in a certain area or have a certain type of Do not work in a 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.
Investopedia / Alice Morgan