CD shoppers wanting a high rate that can be guaranteed for several years have new-and-improved options today. With just $500 or more, you can now earn 4.85% APY on a 4-year certificate, up from 4.73% APY last week. But if you have at least $100,000 to deposit, you can do even better, earning 5.12% APY on a 4-year jumbo certificate, making that the longest duration CD that currently pays at least 5.00% APY.
The top rates in every other CD term held firm today, with the industry-leading rate continuing to be 5.50% APY on a 9-month certificate. You can also find 15 more opportunities that pay 5.25% APY or better in our daily rankings of the best nationwide CDs.
While these are all great opportunities, they could get even better. Odds on whether the Fed will raise the federal funds rate again have been shifting, with market forecasters now betting more heavily that we’ll see another increase in mid-June. Though these are just predictions, it indicates CD rates could rise even further.
Key Takeaways
- The top rate on 4-year CDs has increased to 4.85% APY for a $500 minimum deposit or 5.12% APY for a jumbo deposit of at least $100,000.
- The most you can earn from any nationwide CD remains 5.50% APY, with a 9-month term.
- A total of 16 options in our daily rankings of the best CDs offer 5.25% APY or more.
- If you want the longest term possible that pays at least 5.00%, the leading choices are 5.13% APY on a 3-year certificate with a $1,000 minimum deposit, or 5.12% APY on a 4-year certificate if you deposit at least $100,000.
- While previous Fed predictions favored a rate-hike pause at the upcoming June meeting, forecasters now lay better odds on another rate increase.
| CD Terms | Yesterday’s Top National Rate | Today’s Top National Rate | Day’s Change (percentage points) |
| 3 months | 5.15% APY | 5.15% APY | No change |
| 6 months | 5.50% APY | 5.50% APY | No change |
| 1 year | 5.28% APY | 5.28% APY | No change |
| 18 months | 5.30% APY | 5.30% 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 | 4.73% APY | 4.85% APY | + 0.12 |
| 5 years | 4.68% APY | 4.68% 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, beat the best standard rates in four CD terms, while you can do 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?
CD rates are very directly linked to the federal funds rate, with each Fed move generally driving CD rates in the same direction. But while today’s CD rates are already at their highest levels since 2007, whether they’ve peaked or will climb higher depends on what the Federal Reserve decides to do during its next meeting, concluding June 14.
Over the past 14 months, the Fed has been on a campaign to combat decades-high inflation, with aggressive increases totaling 4.25% in 2022, and three 2023 increases to-date totaling another 0.75%. That ascent has been a boon for CD shoppers, as well as those stashing cash in a high-yield savings or money market account.
With the next Fed meeting roughly two weeks away, market watchers are closely scrutinizing the most recent economic indicators and comments from Federal Reserve Board members, searching for clues about what will happen next. Confusing matters, different Fed members have spoken out with different opinions on whether the rate hikes should pause.
But last week’s release of a key inflation indicator showed that inflation remains stubbornly high, which many believe will push the Fed to make another increase. As a result, Fed fund futures traders have shifted from betting on a rate pause to betting on a quarter-point increase at the June meeting. At the time of this writing, the prediction is roughly 2-to-1 in favor of another hike.
Of course, a pause is still possible at the next meeting, and even if it doesn’t happen in June, odds are reasonable it will happen at some future 2023 meeting. Whenever the Fed officially pauses its rate increases, you can expect that CD rates will almost certainly plateau, and could even begin to decline. So it’s a good move to open any new CDs before rates begin to deteriorate.
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.
