As the Federal Reserve held its first meeting in 11 meetings that didn't include another interest rate hike today, the yields on the top-paying certificates of deposit (CDs) remained steady for the third day in a row. The highest rate you can earn on a nationally available CD of any length remains 5.65% APY, offered for a 9-month term.

But the number of CDs paying a superb rate keeps growing. A week ago, our daily rankings of the best nationwide CDs included 24 certificates paying 5.25% A🌱PY or better. Today, that number reached 33, one more than yesterday.

Some Fed rate setters indicated today that interest rates could still increase another 0.50% this year. That's not a guarantee, but if it happens, CD yields could go even higher than the 15-year highs they've already hit.

Where Are CD Rates Headed This Year?

CD rates are very directly linked to the federal funds rate, with each change announced by the Fed typically driving CD rates in the same direction. But while today's CD rates are already at their highest levels since 2007, the Fed decided today to hold the federal funds rate steady for n💮ow.

Whether CD rates have hit their peak or will rise further depends on what the Fed decides to do during the remaining meetings this year, with the next one concluding on July 26.

Over the past 15 months, the Fed has been on a campaign to combat decades-high inflation with aggressive rate increases totaling 4.25% in 2022, plus three 2023 increases to-date totaling another 0.75%. That ascent has been a boon for CD shoppers, in addition to people holding 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 Pauses Rate Hikes

This month's Fed meeting marks the first time in over a year without a new Fed rate hike announcement. While the Fed’s rate-setting committee decided to keep rates steady for the time being, the Fed's announcement indicates that there will likely be two additional rate increases this year, which may elevate the federal funds rate another 0.50%.

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

Whateve🦩r the rate-setting committee announces next month, CD rates are expected to follow suit, either plateauing if the Fed maintains the pause or rising further if it anno🍃unces a new increase. That said, 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 cred🍰it unions), and the CD's mi♉nimum 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, 澳洲幸运5官方开奖结果体彩网:read our full methodology.