If you’re looking to secure one of today’s record CD rates for months or years down the road, the menu of excellent options continues to be robust. Though the market’s elevated CD yields generally held steady today, anyone with a very large deposit has a new nation-leading opportunity to earn 5.55% APY on a 13-month jumbo certificate.
If your planned investment is more modest, the top rate you can earn in our daily ranking of the best nationwide CDs remains 5.65% APY, available for either 7 or 9 months. Or you can give up a little yield in exchange for a slightly longer term, earning 5.50% APY with a 13-month or 15-month certificate.
The number of CDs paying at least 5.35% APY held at 25 today, while the longest duration on which you can earn at least 5.00% continues to be a 3-year certificate paying 5.13% APY. If you have a deposit of $100,000 or more, however, you can stretch that to a 4-year jumbo CD offering 5.12% APY.
Key Takeaways
- The best-paying 1-year CD is now a 5.55% APY jumbo option for 13 months, though it requires a deposit of at least $100,000. For smaller deposits, you can earn 5.50% APY on either 13 or 15 months.
- The highest nationally available rate across all CD terms continues to be 5.65% APY, with either a 7-month or 9-month option.
- Twenty-five CDs in our daily rankings pay at least 5.35% APY, up from 19 one week ago.
- The longest term paying at least 5.00% APY remains 3 years for a rate of 5.13% APY, or 5.12% APY for a 4-year jumbo certificate requiring $100,000 or more.
- The Federal Reserve is overwhelmingly expected to raise the federal funds rate slightly higher at the end of July, which could nudge CD rates a bit higher. But since many banks and credit unions have already raised rates, CDs could already be at or near their peak.
| 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?
Even though CD rates are already at record levels, it’s possible they’ll rise higher still. That’s because the Federal Reserve is widely expected to increase the federal funds rate by a quarter percentage point at its meeting in 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.
At its June 14 meeting, 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 that 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 further increases post-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 today 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 the year.
As always, it’s wise to be wary of Fed forecasts that project many months in advance. Each rate decision is based on the latest economic data and financial news, and that can change quickly. But we can be fairly sure that any rate hike the Fed implements will almost certainly nudge CD rates a little higher. When at some point it appears the Fed is ready to cease its rate hikes, however, it will mean CD rates have likely reached their peak.
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-13-2023-7560945?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo