Top CD Rates Today: One 6% Leader and Four Runners-Up Paying 5.75%

Will CD Rates Go Up This Year?

The Fed has been aggressively combating decades-high inflation since March of last year, with fast-and-furious 2022 hikes to the federal funds rate, and then easing to more moderate increases in 2023. On July 26, the Fed bumped rates for the 11th time in 12 meetings, taking the cumulative increase to 5.25%. That raises the benchmark rate to its highest level since 2001. In turn, it’s created record rate conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.

The Fed’s official July announcement provided no strong indications on whether it will raise its benchmark rate even higher this year. The written statement simply reiterated the Fed’s commitment to bring inflation back down to its target level of 2%.

In an Aug. 25 speech, Fed Chair Jerome Powell said further rate increases were on the table if inflation doesn’t come down enough in the coming months or if economic growth is too fast (which would put upward pressure on inflation.) Echoing a similar sentiment, Boston Federal Reserve President Susan M. Collins said this week that it’s too early to tell whether the Fed can end its rate-hike campaign.

The Fed’s next meeting will conclude Sept. 20, and markets are betting on near-certainty that the central bank will hold its benchmark rate steady this time. But the probability of the Fed hiking rates at its November meeting is currently pegged at about 45% odds.

Any further Fed increase would certainly push CD rates a bit higher. But September’s expected hold will leave markets–and CD shoppers–guessing if the pause will turn out to be temporary or permanent. Once the end of the Fed’s campaign is more confidently in sight, that will signal that CD rates have likely peaked.

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.

Correction–Sep. 2, 2023: This article has been updated to state the prior day’s top rate for a 3-year CD and the current top rate for a 4-year jumbo CD.

Investopedia / Alice Morgan & Sabrina Jiang