The best rates for certificates of deposits (CDs) held firm today, after a flurry of inꦦcreases yesterday. The top annual percentage rate (APY) you can get on any CD is 5.65%, which is available on a 9-month certificate.

If that doesn't suit your needs, you can earn at least 5.25% APY on 21 CDs in our daily rankings of the best nationwide CDs. If your goal is to lock in a record rate for as long as possible, your top options that earn above 5.00% are a 3-year CD paying 5.13% APY, or a jumbo 4-year certificate paying 5.12% APY. You'll need a $100,000 minimum deposit to open the jumbo CD, however.

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 next meeting, which will conclude on June 14.

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 a 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

🐈 With the next Fed meeting now less than two weeks away, market watchers are closely scrutinizing the most recent economic indicators and comments from Federal Reserve Board members, searching for clues about what will happen next. In the past couple of weeks, several Fed officials have signaled the central bank may pause rate increases for the time being.

On Wednesday, Fed Governor Philip Jefferson (who is also the nominee for Fed vice chair) and Philadelphia Fed President Patrick Harker both indicated that they think the central bank will skip a rate hike at the June meeting. Those comments followed similar remarks by Federal Reserve Chairman Jerome Powell on May 19, when he said at a conference that he thought a rate hike pause was in order.

Today, fresh jobs data showed that an une꧟xpectedly high number of jobs were added in May—which could increase inflationary pressure—but the 澳洲幸运5官方开奖结果体彩网:unemployment rate increased and wage growth slowed.

All of this information has about 75% of federal funds futures traders still betting in favor of a rate pause, with 25% thinking rates could still go higher.

For CD rates, this means they could soon plateau (if the Fed announces a rate hold), or they could still climb higher (if t𝕴he Fed implements another incr𒆙ease).

Even if CD rates haven't peaked yet, they are already at their highest level in more than 15 years. So locking in a top-paying certificate now would still ensure you'll earn an excellent rate for months or years to come.

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 dep🙈osit 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.