With the Federal Reserve's next interest rate announcement slated for tomorrow, the yields on the top-paying certificates of deposit (CDs) are holding firm after many of them rose in the past week. A week ago, our daily rankings of the best nationwide CDs included 24 certificates payi🐻ng 5.25% APY or better. Today that number is at 32.

The highest rate you can earn on a nationally available CD of any length remains 5.65% APY, offered for a 9-month term. And the longest-duratဣion CDs that pay at least 5.00% continue to be a standard 4-year option certificate paying 5.00% and a 4-year jumbo CD with a 5.12% APY (that one requꦜires a deposit of $100,000).

The Fed's rate-setting committee began meeting today, and it's scheduled to announce whether it will raise the federal funds rate Wednesday afternoon. Numbers out today show inflation further declining, adding more fuel to the 澳洲幸运5官方开奖结果体彩网:widely held expectation that the committee will hold rates where they are now, which could mean CDs are at or near peak levels.

Where Are CD Rates Headed This Year?

CD rates are very directly linked to the federal funds rate, with each Fed move generally driving CD rates in the same direction. But while today's CD rates are already at their highest levels since 2007, whether they've peaked or will climb higher depends on what the Federal Reserve decides to do during its meeting, which started today and will conclude tomorrow.

Over the past 15 months, the Fed has been on a campaign to combat decades-high inflation with aggressive increases totaling 4.25% in 2022, and three 2023 increases to-date totaling another 0.75%. That ascent has been a boon for CD shoppers, as well as those stashing cash in 澳洲幸运5官方开奖结果体彩网:high-yield savings or 澳洲幸运5官方开奖结果体彩网:money market accounts.

Fed May Pause Rate Hikes

A report released today that showed 澳洲幸运5官方开奖结果体彩网:🔯inflation rose slightl𝓀y less than expected in May may have given the Fed's Open Market Committee more reason to pause interest rate hikes, at least for now. The 澳洲幸运5官方开奖结果体彩网:Consumer Price Index (CPI) was up 4% y𓃲ear-over-year, a little꧙ lower than the 4.1% economists had predicted.

Other economic indicators already had some Federal Reserve Board members calling for a rate pause in recent weeks. With today's news, federal fund futures traders are overwhelmingly betting that's the decision the committee will make tomorrow.

However, the hold is being viewed as more of a skip than a pause, with around 65% of futures traders currently predicting the Fed rate will be higher after the July 26 meeting.

Whatever the rate-setting committee announces tomorrow or next month, CD rates are expected 🍒to follow suit, plateauing if the Fed pauses, or rising further if it announces another increase. But since CD rates are already at their highest levels since 2007, locking in a top-paying certificate now would still secure an excellent rate that will pay dividends far down the road.

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 deposi🐽t 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, 澳洲幸运5官方开奖结果体彩网:read our full methodology.