Top CDs Today: Leading Rate Drops Under 6% for First Time Since September

Just two weeks ago, we could boast five nationwide CDs paying 6% or better. But one by one, they've been taken off the market—with the final casualty coming today.

Bayer Heritage Federal Credit Union was the last 6% CD still standing, paying 6.18% on a 1-year term. With its expiration, our leading nationwide rate slips to 5.80% APY, but you have two choices at that rate. Credit Human is paying that industry-leading rate on a take-your-pick term of 12-17 months, while Seattle Bank will let you extend your 5.80% return for 18 months.

Below you'll find featured rates available from our partners, followed by details from our complete ranking of the best CDs available nationwide.

If you're looking for a nationwide CD paying a top rate of at least 5.75%, the longest term available is 18 months. But if you want to secure one of today's historically high rates for longer, you can lock in 5.60% APY for 2 years, or 5.50% APY for 3 years. Still not long enough? You can get a 4-year CD with a rate of 5.20% or a 5-year CD that pays 5.25% APY.

If you have enough to make a jumbo deposit of at least $100,000, you can stretch your rate by at least 5 basis points in the 1-year term—earning 5.85% from two different contenders—and the 2-year term, with a top rate of 5.68% APY.

How High Will CD Rates Go This Year?

The Federal Reserve has been aggressively combating decades-high inflation since March of last year, raising the federal funds rate with fast and furious hikes in 2022 and then more moderate increases in 2023. This has created historically favorable conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.

The Fed opted to hold rates steady on Nov. 1, its second such move in a row. That maintains the central bank's benchmark rate at its highest level since 2001. But in his post-announcement press conference, Fed Chair Jerome Powell made it clear that holding rates in place right now does not necessarily mean the committee is finished with increases.

"Inflation has moderated since the middle of last year and readings over the summer were quite favorable," Powell said. "But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal."

The Fed chair also reiterated what he has indicated in many past press conferences about the current announcement only representing a decision for today.

"We haven't made any decisions about future meetings," Powell said. "We're going meeting by meeting."

However, monthly inflation data released Tuesday was encouraging, coming in below expectations. As a result, financial markets now overwhelmingly predict that the Fed will not make any further rate increases, with odds pushed below 5% for an increase at the committee's Dec. 13 or Jan. 31 meetings, according to the CME Group's FedWatch Tool.

As we always caution, trying to predict the Fed's future rate moves is an unreliable exercise. But for now, it seems CD rates could roughly stabilize at their current historic levels.

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.