Top CD Rates for October 17, 2023: Secure a Record 6.50% APY While It Lasts

Looking to invest a modest amount in a certificate of deposit (CD)? Now is an exceptional time. Financial Partners Credit Union is offering an eye-catching 6.50% annual percentage yield (APY) on an 8-month CD, available for deposits up to $5,000. This rate is the highest national CD yield seen in over two decades, surpassing the next best offering by a significant 0.5%. However, due to its uniqueness, this opportunity may not be available for long.

If you plan to deposit more than $5,000, Credit Human presents an excellent alternative with a 6.00% APY on terms ranging from 12 to 17 months, allowing you to select the duration that suits your financial goals. Additionally, numerous other CDs offer rates of 5.75% APY or higher, including options with terms as brief as six months.

Key Highlights

• The top national CD rate stands firm at 6.50% APY for an 8-month term, capped at a $5,000 deposit.
• Deposits exceeding $5,000 can earn a strong 6.00% APY with flexible 12-17 month terms.
• There are eleven additional CDs offering 5.75% APY or greater, starting from 6-month terms.
• Residents in five select states can access regional CDs yielding 6.25% APY.
• The Federal Reserve is anticipated to maintain interest rates steady on November 1, though a rate hike remains possible later in the year or early next year.

Below, explore featured partner rates alongside our comprehensive nationwide CD rankings.

For those seeking longer commitments, the best 2-year CD now offers 5.60% APY—a recent increase. Longer terms are also available, including 30-month CDs at 5.32% APY and 36- or 40-month CDs at 5.25% APY, all highlighted in our daily top 3-year CD listings.

Jumbo depositors with at least $100,000 can benefit from slightly higher yields, such as 5.63% APY on 2-year CDs and 5.47% APY on 30-month CDs.

Investor Insight

A recent survey of Investopedia readers revealed that nearly 20% would allocate an unexpected $10,000 windfall into CDs, making them the most favored option over stocks, money market funds, and index funds.

Pro Tip

While nationwide CDs offer great rates, don't overlook regional banks and credit unions. Some offer exceptional rates, such as a 6.25% APY CD accessible to residents in five specific states.

Important Reminder

Jumbo CDs don’t always guarantee higher returns than standard CDs. Currently, in six out of eight terms reviewed, standard CDs match or outperform jumbo options. It's wise to compare both before deciding.

How High Can CD Rates Climb This Year?

Since March last year, the Federal Reserve has aggressively raised interest rates to tackle historically high inflation. Eleven rate hikes totaling 5.25% have occurred over 13 meetings, benefiting savers with higher yields on CDs, high-yield savings accounts, and money market funds.

On September 20, the Fed paused rate hikes, keeping rates at their highest since 2001. Chairman Jerome Powell emphasized this pause allows assessment of prior increases' effects and further economic data collection.

The upcoming November 1 meeting is widely expected to maintain current rates, with approximately 88% of futures traders anticipating no change. While many Fed officials suggest the rate hike cycle may have ended, the possibility of another increase remains if economic indicators warrant it, with markets assigning about a 50% chance of a hike by the January 30-31 meeting.

Predicting Fed moves months ahead is challenging due to economic volatility. Although rates appear steady now, future hikes could still influence CD yields.

Explore the best rates for May 2025: CDs up to 4.50%, high-yield savings accounts offering 5.00%, and money market accounts up to 4.40%.

Note on Rates

The "top rates" featured here represent the highest nationally available yields identified through Investopedia's daily research of hundreds of federally insured banks and credit unions. These rates significantly exceed national averages, which are lowered by large banks offering minimal interest.

Rate Collection Methodology

Investopedia tracks daily rates from over 200 federally insured institutions offering CDs nationwide. To qualify, banks must operate in at least 40 states, and CDs must have a minimum initial deposit not exceeding $25,000. Credit unions requiring donations over $40 for membership are excluded. For detailed criteria, see our full methodology.

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