For the first time in a long while, the news for CD shoppers is worse today than yesterday, though the change is minor: Instead of 25 options offering a rate of at least 5.35% APY, your selection has dropped to 23.
You can still earn the stellar rate of 5.65% APY with the two industry-leading CDs (for either 7 or 9 months), according to our daily ranking of the best nationwide CDs. Or you can extend your rate lock to 13 or 15 months and still earn 5.50% APY—or even 5.55% APY for 13 months if you have a jumbo-sized deposit of at least $100,000.
Also holding steady is the longest option on which you can secure a rate of at least 5.00%, which continues to be a 3-year certificate paying 5.13% APY. Anyone able to fund a jumbo deposit, however, can stretch that to 4 years at 5.12% APY.
Key Takeaways
- The number of CDs in our daily rankings that pay at least 5.35% APY dipped to 23 today vs. 25 yesterday.
- The highest rate available on any nationally available CD in any term continues to be 5.65% APY, available for either 7 months or 9 months.
- For a slighting longer duration of around 1 year, you can earn 5.50% APY with the top standard option or 5.55% APY with a jumbo CD.
- The longest term paying at least 5.00% APY remains 3 years for a rate of 5.13% APY, or 5.12% APY for 4 years if you can make a jumbo deposit of at least $100,000.
- The Federal Reserve is overwhelmingly expected to nudge the federal funds rate slightly higher in less than two weeks, which could cause CD rates to inch a bit higher.
| CD Terms | Yesterday’s Top National Rate | Today’s Top National Rate | Day’s Change (percentage points) |
| 3 months | 5.16% APY | 5.16% APY | No change |
| 6 months | 5.65% APY | 5.65% APY | No change |
| 1 year | 5.50% APY | 5.50% APY | No change |
| 18 months | 5.50% APY | 5.50% APY | No change |
| 2 years | 5.27% APY | 5.27% 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 |
Tip
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 offers, which typically require a deposit of $100,000 or more, do beat the best standard rates in five CD terms, but you can do better with standard CDs in the other three terms. So remember to shop every CD type before making a final choice.
Where Are CD Rates Headed This Year?
Though CD rates are already at record levels, they could certainly rise a bit more. That’s because the Federal Reserve is widely expected to increase the federal funds rate by a quarter percentage point at its meeting in less than two weeks. The fed funds rate has a significant impact on the CD rates that banks and credit unions are willing to pay customers for their deposits.
The Federal Reserve has been on a mission since March 2022 to combat decades-high inflation with aggressive hikes to its benchmark rate. The cumulative increase has so far totaled 5.00%, driving today’s savings and CD rates to their highest levels since 2007. That’s created a heyday for CD shoppers, as well as anyone holding cash in a high-yield savings or money market account.
One month ago, the Fed held its benchmark rate steady for the first time in 11 meetings, in order to better study the impact of previous rate hikes. Minutes from the June 14 meeting were released last week, and combined with statements from Fed Chairman Jerome Powell during the last three weeks, the signals were strong that two more rate hikes were still possible this year. As a result, financial markets have priced in a greater than 90% probability that the Fed will implement a quarter-point hike at its meeting scheduled to conclude on July 26.
But this week, the prospect of any further increases after July dimmed a bit. On Wednesday, the monthly report of headline inflation showed June prices rose just 3.0% year-over-year, a notable improvement over May’s 4.0% level. And Thursday saw the release of a lower-than-expected inflation figure on wholesale prices. These signs of cooling inflation have investors adjusting their predictions about future Fed rate moves, with more of them now betting this July increase will be the Fed’s last one of 2023.
But Fed forecasts that project many months in advance should always be taken with a grain of salt. Each Fed decision is based on the latest economic data and financial news, and that can change dramatically over a short period, never mind a long one. There simply is no crystal ball. But what we can be fairly sure of is that any rate hike the Fed does implement will almost certainly nudge CD rates a little higher. When at some point it appears the Fed is ready to end its rate-hike campaign for good, that will likely mean CD rates have peaked.
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.
Source: https://www.investopedia.com/top-cd-rates-today-july-14-2023-7561415?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo