Top CDs Today: Record 6.50% Rate Available While It Lasts

Looking to make a modest CD deposit? You're in luck. Although the nation-leading certificate is only available for a deposit up to $5,000, it's paying a whopping 6.50% APY. That rate is is by far the highest return offered on a nationally available certificate in more than 20 years. But since it stands a remarkable half percentage point above the next-best national rate, it's an offer that may not last long.

Financial Partners Credit Union is offering the 6.50% rate for an 8-month term. If you want to invest more than $5,000, though, Credit Human is your leading choice, paying 6.00% APY on a term of your choice between 12 and 17 months. Plenty of other CDs are offering rates of 5.75% APY or better, including terms as short as 6 months.

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

Looking to lock in a great rate for a longer term? The top 2-year CD is paying 5.60% APY, a rate increase that was unveiled last week. If that's still not long enough, you can secure 5.32% APY for 30 months down the road, or 5.25% APY for 36 or 40 months. All three of those can be found in our daily ranking of the best 3-year CDs.

If you have the option to make a jumbo deposit of at least $100,000, you can boost your 2-year rate to 5.63% APY or your 30-month rate to 5.47% 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. With its most recent hike on July 26, the Fed has implemented 11 increases in 13 meetings, for a cumulative increase of 5.25%. This has created favorable rate conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.

On Sept. 20, the Fed announced a rate hold, maintaining the central bank's benchmark rate at its highest level since 2001. In his post-announcement press conference, Fed Chairman Jerome Powell made it clear that holding rates is about pausing to see how much impact previous hikes will continue to have and allowing more economic data to come in for the Fed's consideration.

The next two-day meeting will conclude on Nov. 1, and financial markets widely expect the Fed to hold rates steady yet again. According to CME's FedWatch Tool, approximately 88% of fed funds futures traders are currently betting on a Nov. 1 hold.

Several Fed members have signaled in recent weeks that they expect the committee's rate-hike campaign has reached its end, with yet another Fed member echoing that sentiment yesterday. But until more inflation and employment data is released, another interest rate increase is still possible. Markets currently are assessing roughly 50% odds that one more hike will be announced by the Fed's Jan. 30-31 meeting.

As we always caution, predicting Fed rate moves several weeks or months down the road is an imperfect exercise, since the economic landscape can change quickly and potentially alter the Fed's course. So while rates may seem to be stabilizing right now, only time will tell whether a future rate hike is still on the horizon. And that, in turn, will determine whether CD rates have reached their peak or may still edge a bit higher.

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.