As a result, banks have begun easing their rates. This rate affects how much it costs banks to borrow and lend money, so the higher it is, the higher banks raise their CD rates to attract new customers (and their money).īut with inflation finally cooling, the Fed has opted to pause rate hikes at its last two meetings.
Where are CD rates heading?ĬD rates have steadily increased since March 2022 as the Federal Reserve regularly raised the federal funds rate to combat inflation. Earnings are based on APYs and assume interest is compounded annually. 1, 2023, based on the banks we track at CNET.
Here are some of the top CD rates available right now and how much you could earn if you deposited $5,000 today.
