* indicates the highest APY level offered each semester. To view our lists of the highest-grossing CDs across terms bank certificates, credit union certificates, and jumbo certificates, click on the column headers above.
Although it is suggested that a larger deposit entitles you to a higher payout, this is not always the case for hefty certificate rates, which often pay less than standard CDs. Although today’s best jumbo deals, which typically require a deposit of $100,000 or more, beat standard best rates in five conditions on CDs, you can do just as well or better in the other three terms with a standard CD. So always make sure to shop around each certification type before making a final decision.
Will CD prices go up this year?
CD rates are already at record levels, but they could be even higher. That’s because the Fed announced another 0.25% increase in the federal funds rate on July 26th, and it will remain at that level until at least September 20th. Credit unions are willing to pay customers for their deposits.
The Fed has been aggressively battling decades-high inflation since March 2022, with 11 hikes to its benchmark rates over the past 12 meetings. The July high triggered the cumulative increase to 5.25%, pushing the federal funds rate to its highest level since 2001. This has created historic conditions for CD shoppers, as well as for anyone with cash in a high-yield savings account or in the money market.
The Fed’s official announcement in July did not provide any strong indications as to whether it would raise the benchmark interest rate higher this year. The written statement simply reiterated the Fed’s commitment to lower inflation to its target of 2%.
In his post-announcement press conference, Fed Chairman Jerome Powell noted that the rate-setting committee had not yet made any decisions about raising rates again in 2023, or if so, what the timing or speed of any increases would follow. He specifically mentioned that rising and stopping were both possibilities at the next meeting, scheduled for September 19-20.
Since then, several Fed governors have made public statements about their expectations of whether the committee will raise or suspend interest rates in the future. Last week, two emphasized the need to monitor upcoming data and decide on a meeting cycle-by-meeting cycle – including the possibility of another increase – while a third noted that unless something unexpected appears in the data, he expects rates to be held without any other increases.
The fourth committee member spoke today and noted that although the central bank now could take some time to let more data in, it is not ready to announce the end of the Fed hikes. He also suggested it could be 2024 or even 2025 before the Fed moves the other way and cuts interest rates.
As we can see from the continuation of the upward movement this week, the July rally could push CD rates higher. But it’s also possible that the impact will start to fade until a clearer picture emerges about the Fed’s next move. In any case, once the Fed appears ready to end its rate hike campaign for good, that would be a sign that CD rates are likely capped.
Note that the “higher rates” listed here are the highest rates available nationwide that Investopedia has determined in its daily rate search on hundreds of banks and credit unions. This is very different from the national average, which includes all banks that offer a CD with that term, including many of the larger ones that pay minuscule interest. Thus, the national rates are always very low, while the higher rates that you can find out by shopping around are often five, 10 or even 15 times higher.
Disclosure of the price collection methodology
Every business day, Investopedia tracks price data for more than 200 banks and credit unions that offer CDs to customers across the country and determines daily ratings for the highest-paying certificates in each key term. To qualify for our listings, an organization must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial CD deposit must not exceed $25,000.
Banks must be available in at least 40 states. And although some credit unions require you to make a donation to a specific charity or association to become a member if you don’t meet other eligibility criteria (for example, you don’t live in a certain area or work in a certain type of job), we exclude credit unions whose donation requirements are $40 or more. For more information on how to choose the best rates, read our full methodology.