Top CDs Today: 30 Options Now Offer a Top-Tier Rate
The number of CD options paying 5.50% or more has increased to 30, double the number available at the beginning of August, with the highest rate being 5.85% APY on a jumbo certificate.
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Posted 8/23/2023, 9:48:03 PM
investopedia.com
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Not all CDs are created equal, as today's top CDs offer rates nearly four times higher than the national average, allowing investors to maximize their returns and get the most for their savings.
CD shoppers can take advantage of high APY rates, with options ranging from 5.50% to 5.85% for standard and jumbo CDs, and there is a possibility that CD rates could go even higher this year if the Federal Reserve raises its benchmark interest rate.
Alabama Credit Union now offers the best 18-month CD rate of 5.66% APY, surpassing the previous top rate of 5.55% APY, as the overall leading rate for the best nationwide CDs reached 6.00% APY.
First Harvest Credit Union has taken the top spot for 18-month CDs, offering a rate of 5.75% APY for a 15-month term, while American 1 Credit Union continues to offer the leading nationwide rate of 6.00% APY for 12 months.
USAlliance Financial is now offering a 6-month CD with a competitive rate of 5.75% APY, joining five other CDs with the same rate, but with different durations ranging from nine to 15 months.
Despite a six-way tie for the leading rate on nationally available CDs at 5.75% APY, the number of options in the elite group has grown to 16, with the addition of a new 12-month CD from CFG Bank, while the probability of a Fed rate hike in November or December is estimated to be 30-40%.
Summary: With interest rates at a 22-year high, depositing $10,000 into a certificate of deposit (CD) can be a beneficial option for savers, offering higher interest rates and protection for their money.
The Federal Savings Bank now offers a 5.80% APY on a 1-year certificate, surpassing the previous industry-leading rate of 5.75% APY, while the top rate for 2-year CDs has decreased from 5.55% to 5.50% APY.
Despite the Federal Reserve's decision to maintain interest rates, banks and credit unions are still increasing the rates offered on certificates of deposit (CDs), with the number of nationally available CDs offering rates of 5.65% or higher rising from 15 to 21 in just one week.