New High-Yield CD Option Shakes Up Current Rate Trends

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In a financial climate where CD rates are on the rise, the market shows no signs of slowing down. The number of CDs paying a benchmark rate of 5.50% APY or higher has risen to 38, marking a significant increase of 10 just in the past week and almost two dozen since the beginning of August. This upward trend is being led by three institutions – BluPeak Credit Union, Abound Credit Union, and MapleMark Bank – all offering a whopping 5.75% APY, the highest nationwide rate for 9 to 12 month terms. For those with a jumbo-sized deposit of $100,000 or more, the rate goes even higher to 5.85% APY, courtesy of One American Bank on a 170-day term.

For those seeking to lock in these record rates for a longer term, there are options available. A 3-year term CD can yield up to 5.13% APY, while a 4-year term with a jumbo deposit of $100,000 can secure a 5.12% APY. However, potential investors should be aware that larger deposits do not always guarantee higher returns, as jumbo certificate rates often pay less than standard CDs. Therefore, it is always advisable to research every certificate type before making a final decision.

Unstoppable Rise of CD Rates: A Deep Dive into the Current Trend

CD rates have been on an upward trajectory with no signs of abating. The number of CDs offering an annual percentage yield (APY) of 5.50% or higher has reached 38, a significant increase of 10 in just a week, and almost two dozen since the start of August.

The Highest CD Rates Nationwide

The highest nationwide rate currently stands at 5.75% APY, offered by BluPeak Credit Union for 9 months, Abound Credit Union for 10 months, and MapleMark Bank for 12 months. For those with a jumbo-sized deposit of $100,000 or more, the top available rate increases to 5.85% APY from One American Bank on a 170-day term.

Longer-Term Rates and Tips for CD Shoppers

For those interested in securing one of today’s record rates for longer than two years, there are attractive options available. The leader of the best 3-year CD ranking offers 5.13% APY, while a 5.12% APY jumbo certificate can be procured for a deposit of $100,000 or more for a four-year term.

Furthermore, if you’re under the impression that becoming a credit union member is too much of a hassle, it’s worth reconsidering. The credit unions included in our rankings are open to anyone nationwide and are easy to join.

The Future of CD Rates

While we’ve already seen CD rates hit record levels this year, it’s possible they could climb even higher. The Federal Reserve has been aggressively combating decades-high inflation since last year, with a series of rate hikes that have created historical conditions for CD shoppers. However, whether the Fed will raise its benchmark rate even higher this year remains uncertain.

Final Thoughts

Despite the attractive rates, it’s essential to remember that a larger deposit does not always guarantee a higher return. Jumbo certificate rates, which often require a deposit of $100,000 or more, sometimes pay less than standard CDs. It’s always wise to explore every certificate type before making a final decision.

The current trend in CD rates is a clear reflection of the central bank’s aggressive stance against inflation. However, the future trajectory will largely depend on how the inflation situation unfolds in the coming months and the subsequent decisions by the Federal Reserve. CD investors should keep a close eye on these developments to make the most informed decisions.

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