If you are looking to hold your Certificate of Deposit (CD) rate above 5.00% for as long as possible, you just have a new option. You can now earn 5.13% on a 3-year CD. Previously the best rate you could get for this class was 4.85%, and if you wanted to earn 5.00% or better, you could only do that for two years.
The highest annualized return (APY) across all CD terms remains 5.50%. This price remains available for 9-month and 15-month periods.
In addition to these two products, there are 12 additional CDs on our list of the best CDs nationwide that have ratings of at least 5.25% APY, with terms ranging from six months to two years.
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- The 3-year CD top rate rose to 5.13% today.
- The best rate you can get on any CD is still 5.50% APY, available on 9-month and 15-month terms.
- There are over 12 other CDs in our daily rankings that pay at least 5.25% APY.
- Mega CD rates jumped at three different periods: 6 months, 2, and 3 years.
- With members of the Federal Reserve talking about pausing the federal funds rate hike, now is an excellent time to secure a higher cash deposit rate.
| CD Terms | Yesterday’s national high | Today’s highest national price | Today change (percentage points) |
| 3 months | 5.10%APY | 5.10%APY | No change |
| 6 months | 5.50%APY | 5.50%APY | No change |
| One year | 5.25%APY | 5.25%APY | No change |
| 18 months | 5.50%APY | 5.50%APY | No change |
| Two years | 5.25%APY | 5.25%APY | No change |
| 3 years | 4.85%APY | 5.13%APY | +0.28 |
| 4 years | 4.73%APY | 4.73%APY | No change |
| 5 years | 4.68%APY | 4.68%APY | No change |
Despite the implication that a larger deposit should earn you a higher return, prices on mega certificates often pay less than standard CDs. Today’s best jumbo deals, which typically require a deposit of $100,000 or more, only beat standard best rates in four CD terms, while you can do better with standard CDs in the other four seasons. So remember to shop around each type of CD before making a final decision.
Where are CD prices headed this year?
CD rates typically follow the trend set by the federal funds rate, and the quarter-point increase in the federal funds rate on May 3 sent CD rates slightly higher. But while CD rates are at their highest levels since 2007, whether that is the case will likely depend on what the Fed decides to do at its next meeting on June 13-14.
The Fed has been on a 14-month anti-inflationary campaign, with massive increases of 4.25% in 2022. While that growth has been a boon for bondholders, the recent increases have been more complex as inflation has fallen. As such, CD rates have also increased more slowly over the past few months.
Fed watchers look at economic indicators and statements from members of the Federal Reserve Board of Governors for clues about what happens next. They gave different opinions.
Last week, Federal Reserve Chairman Jerome Powell said policy rates may not need to go up as much as originally thought to meet inflation targets. But the Dallas Fed chairman said at least one rate hike was needed to ensure a further drop in inflation.
On Monday, St. Louis Federal Reserve Bank President James Bullard joined the opposition group, calling for two more rate hikes this year. His counterpart in Minneapolis, Neel Kashkari, stated that if the central bank decides to pause rate hikes, it still has to stress that the tightening is not over yet.
Fed fund futures traders are now betting three to one that the Fed will pause interest rate hikes at its next meeting, while others are betting on a quarter-point increase.
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 pricing 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.
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