Published October 13, 2023
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There’s a new CD available with a top rate of 6.50% for an eight-month term, the highest rate of any tracked by Investopedia. But it comes with a significant restriction: a $5,000 maximum deposit.
The new top rate, offered by Financial Partners Credit Union, leapfrogged the competition. The second-highest rate is now 6.00%, available for a take-your-pick term between 12 and 17 months, although that remains the most competitive rate for deposits over $5,000.
Key Takeaways
- The new top rate in our daily ranking of the best nationwide CDs is 6.50% APY, available an eight-month term with a maximum deposit of $5,000.
- Thirteen nationally available CDs are paying 5.75% APY or better, with another 18 options paying at least 5.65% APY.
- Shoppers in five states can earn 6.25% APY with a regional offer.
- The Fed is widely expected to hold interest rates steady for the second consecutive time when it meets on Nov. 1, but another rate hike remains possible in December or January.
Below you’ll find featured rates available from our partners, followed by details from our complete ranking of the best CDs available nationwide.
Looking to lock in a great rate for a longer term? The top 2-year CD is now paying 5.60% APY, a rate increase that was unveiled earlier this week. And if that’s still not long enough, you can secure 5.32% APY for 30 months down the road, or 5.25% APY for 36 or 40 months. All three of those can be found in our daily ranking of the best 3-year CDs.
If you have the option to make a jumbo deposit of at least $100,000, you can boost your 2-year rate to 5.63%, or a 30-month rate to 5.47% APY.
Note
When asked where they would put an unexpected $10,000 windfall, almost 1 in 5 recently surveyed Investopedia readers said they would choose a CD. Selected by 18% of readers, CDs were the most popular response, outpacing stocks, money market funds, and index funds.
Nationwide CDs aren’t your only option. Leading rates are sometimes offered by banks and credit unions that serve select regions. While sometimes these territories are small, one particularly competitive CD—paying 6.25% APY—is available to anyone living in one of five lucky states.
Note that jumbo CDs don’t always pay a higher return than standard certificates. Sometimes you can do just as well—or better—with a standard CD. That’s currently the case in six of the eight terms above, so it’s smart to shop 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 of last year, raising the federal funds rate with fast and furious hikes in 2022 and then more moderate increases in 2023. With its most recent hike on July 26, the Fed has implemented 11 increases in 13 meetings, for a cumulative increase of 5.25%. This has created favorable rate conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
On Sept. 20, the Fed announced a rate hold, maintaining the central bank’s benchmark rate at its highest level since 2001. In his post-announcement press conference, Fed Chairman Jerome Powell made it clear that holding rates is about pausing to see how much impact previous hikes will continue to have and allowing more economic data to come in for the Fed’s consideration.
The next two-day meeting will conclude on Nov. 1, and several Fed members have recently signaled that they expect the committee’s rate-hike campaign has reached its end. As a result, 92% of fed funds futures traders are betting on another rate hold on Nov. 1, per CME’s FedWatch Tool.
As we always caution, however, predicting Fed rate moves is an imperfect exercise. The economic landscape can change quickly, potentially altering the Fed’s expected course at any time. So while rates seem to be stabilizing right now, only time will tell whether a future Fed rate hike may still be on the horizon for December or January. And that, in turn, will determine whether CD rates have peaked or may edge a bit higher.
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, 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. 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 (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
Investopedia / Alice Morgan
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
