:max_bytes(150000):strip_icc()/August4-39b4355ae4ba48d4b224b36880529500.jpg "Top CD Rates Today: Best 3-Month Rate Rises, 18-Month Leader Drops")
Anyone looking to earn a top CD rate with a very short commitment can now score 5.35% APY on the best nationally available 3-month CD from iGObanking. The top rate on a 3-month CD was 5.20% APY yesterday.
Unfortunately, the 15-month CD that had been available at the top rate of 5.75% APY is no longer on the market. The good news is that you can still get 5.75%—the highest rate nationwide on a CD of any duration—on a 9-month CD from Andrews Federal Credit Union.
Key Takeaways
- The top rate on a nationwide 3-month CD rose today to 5.35% APY.
- The leading CD in the 18-month term—paying 5.75% APY on 15 months—has come off the market, but that top CD rate is still available on a 9-month CD.
- Our “Benchmark Leaders” group of CDs paying at least 5.50% APY lost one option today, lowering the count to 15 certificates.
- The longest term on which you can earn 5.00% APY or more is three years paying 5.13% APY, or if you have a jumbo-sized deposit, four years paying 5.12% APY.
To help you earn as much as possible, here are the top CD rates available from our partners, followed by more information on the best-paying CDs that are available to U.S. customers everywhere.
If you want to enjoy one of today’s high rates for a longer term, you have a few options that still earn at least 5.00%. A 5.25% APY is available on a 30-month certificate, or you can earn 5.13% APY for 36 months. Both appear in our best 3-year CDs list. You can even extend that to four years at 5.12% APY if you have at least $100,000 to deposit in a jumbo CD.
Also for those with a jumbo-sized deposit, there is another option to earn the top rate across terms of 5.75%, with an 11-month jumbo certificate from Sun East Federal Credit Union.
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 six CD terms, but in two terms you can do just as well or better with a standard CD. So always be sure to shop every certificate type before making a final decision.
Will CD Rates Climb Higher This Year?
CD rates are already at record levels, but it’s possible they could edge higher still. That’s because the Federal Reserve last week announced another 0.25% increase in the federal funds rate. That matters because the central bank’s benchmark rate is a direct driver of the yields that banks and credit unions are willing to pay customers for their deposits.
Since March 2022, the Federal Reserve has been aggressively combating decades-high inflation, making 11 hikes to the fed funds rate over the past 12 meetings. With the latest bump, the cumulative increase totals 5.25% and brings the fed funds rate to its highest level since 2001. That’s created a boon for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
Last week’s Fed announcement provided no strong indications on whether it will raise its benchmark rate even higher this year. The written announcement simply reiterated the Fed’s commitment to bring inflation back down to its target level of 2%.
In his post-announcement press conference, Federal Reserve Chairman Jerome Powell indicated that the rate-setting committee has not made any decisions yet on whether to raise rates again in 2023, or if so, what timing or pace any increases would follow.
For now, it’s reasonable to expect that the latest hike—as well as any potential future increases—will push CD rates a bit higher. But the impact could be small because the Fed’s July move had been nearly certain since June, and many banks and credit unions boosted their rates in advance. Once it finally appears the Fed is ready to end its rate-hike campaign for good, that will be the signal that 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.
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