Favorable conditions for CD shoppers continue on this last day of June. Top CD rates around the country remained steady on Friday, and there continues to be an abundance of options for savers that are paying at least 5.35% APY. When we raised the bar to this new threshold last Friday, only 13 CDs qualified for the distinction. But with steady improvements since last week, there are 20 CDs paying at least 5.35% for a second straight day.
The most you can earn across any term in our daily ranking of the best CDs is holding firm at 5.65% APY on a 9-month certificate. For those wanting to instead lock in a rate of at least 5.00% APY for as far into the future as possible, the leading 3-year CD pays a 5.13% APY. But if you have a deposit of $100,000 or more, you can stretch that to four years with a jumbo CD paying 5.12% APY.
Key Takeaways
- Twenty CDs in our daily rankings of the best CDs now offer a rate of at least 5.35% APY, up from 19 on Wednesday and 13 last week.
- 5.65% APY is still the highest available rate on a nationwide CD in any term, available for a 9-month term.
- The longest duration on which you can earn at least 5.00% APY continues to be a 3-year certificate paying 5.13% APY or a jumbo 4-year certificate paying 5.12% with a $100,000 deposit.
- The Federal Reserve held its benchmark rate steady at its June 14 meeting, but it has signaled it will likely need to raise the federal funds rate one or more times this year.
- Fed rate predictions are never guaranteed, but if additional increases occur, they would almost certainly push CD rates further above today’s record rates.
| 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 | 5.52% APY | 5.52% APY | No change |
| 18 months | 5.45% APY | 5.45% APY | No change |
| 2 years | 5.25% APY | 5.25% 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 |
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 four CD terms, but you can do just as well or better with standard CDs in the other four terms. So remember to shop every CD type before making a final choice.
Where Are CD Rates Headed This Year?
Since March 2022, the Federal Reserve has been on a mission to combat decades-high inflation with aggressive increases to the federal funds rate. Because banks and credit unions closely follow this benchmark when setting their own rates, the Fed’s cumulative increases (they’ve totaled 5.00% in all) have driven today’s savings and CD rates to their highest levels since 2007. This has created a heyday for CD shoppers as well as anyone holding cash in a high-yield savings or money market account.
On June 14, the central bank held its benchmark rate steady for the first time in 11 meetings. But a look at the Fed committee’s post-meeting report revealed that further rate hikes this year are likely. The “dot plot” in the report represents where each Fed member believes the benchmark rate should be at the end of this and future years. Of the 18 members, 16 believe at least one more increase will be necessary by the end of 2023, and 12 believe two or more hikes will be in order.
Market watchers are currently pricing in more than 85% odds that the Fed will implement a quarter-point rate increase at its next meeting, scheduled to conclude July 26. Could another hike quickly follow at the September meeting? It’s possible, according to remarks from Fed Chair Jerome Powell this week. Speaking twice in Europe, Powell indicated that the committee has not decided when additional hikes could come, but said moves in consecutive meetings were not “off the table at all.”
But beware that Fed rate moves are never reliably predictable, as conditions can change quickly, and each rate decision is based on up-to-the-minute economic data and news. What we do know is that if the Fed implements any further rate hikes, it will almost certainly push CD rates higher. But if instead the Fed continues to hold its benchmark rate steady, today’s CDs may already be at or near their peak rates, making them a good buy right now.
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-june-30-2023-7556043?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo