The Federal Savings Bank has taken the lead in the CD market with its 1-year certificate now offering a rate of 5.80% APY. This is an upgrade from last week’s rate of 5.75% APY. However, the news isn’t all positive, as the national leader for 2-year CDs has lowered its rate from 5.55% to 5.50% APY. Vibrant Credit Union now offers the top rate in this term on a 23-month certificate.
In total, there are now 17 nationally available CDs that offer a rate of 5.65% or better. If you have a jumbo deposit, you have the opportunity to earn even more with a rate of 5.85% APY offered at a minimum deposit of $100,000.
Looking at the longer terms, the best 3-year CD rate is 5.23% APY, while the leading rates for 4-year and 5-year terms are 4.82% and 4.89% APY, respectively.
The Federal Reserve is expected to keep rates steady in their upcoming meeting, but there is a 30-40% chance of a rate hike in November or December due to persistent inflation. The Fed’s actions to combat inflation have resulted in record rate conditions for CD shoppers and those with high-yield savings or money market accounts.
It’s important to note that jumbo CDs don’t always yield higher returns than standard certificates. It is advised to shop around and compare both options before making a decision.
Investopedia tracks the rate data of over 200 banks and credit unions to provide information on the highest nationally available CD rates. These rates can often be significantly higher than the national average, which is skewed by the offerings of large banks that offer low-interest rates.
Sources:
– The Federal Savings Bank
– Vibrant Credit Union
– Investopedia