Best CD Rates for September 2023: Top Savings Options

Best CD Rates for September 2023

Investors seeking to maximize their savings through Certificate of Deposit (CD) accounts have a wealth of options in September 2023. With the current financial landscape offering competitive rates, individuals looking for secure investments with predictable returns can take advantage of some of the highest Annual Percentage Yield (APY) CD rates available. Here are some of the top CD rates for September 2023:

1. American 1 Credit Union (1-year CD): American 1 Credit Union offers an impressive 6.00% APY on its 1-year CD, making it the top choice for short-term savers. This rate is particularly attractive for those seeking a high return within a relatively short time frame.

2. Dow Credit Union (3-month CD): Dow Credit Union offers a steady 5.65% APY on its 3-month CD. While this is a shorter-term investment, it provides a competitive return for those who prefer liquidity in their investments.

3. U.S. Senate Federal Credit Union (3-year CD): U.S. Senate Federal Credit Union's 3-year CD stands out with a 5.23% APY. This option caters to individuals willing to commit to a slightly longer term for a higher yield.

4. BluPeak Credit Union (6-month CD): BluPeak Credit Union offers a solid 5.75% APY on its 6-month CD. This rate is appealing for those looking for a middle-ground between short and long-term investments.

5. Department of Commerce Federal Credit Union (5-year CD): For savers with a longer investment horizon, the Department of Commerce Federal Credit Union provides a competitive 4.86% APY on its 5-year CD, offering a balance between rate and duration.

6. GTE Financial (4-year CD): GTE Financial presents a respectable 4.81% APY on its 4-year CD. This option can be attractive for those looking for a mid-term investment with competitive returns.

7. One American Bank (Jumbo CD): For investors with a substantial deposit of at least $100,000, One American Bank offers a top-paying jumbo certificate with a 5.85% APY on a 170-day option.

Best CD Rates Today

The table provides a concise overview of today's top national CD (Certificate of Deposit) rates as of September 7, 2023, including rates from banks, credit unions, and jumbo certificates, for various term lengths. It highlights the highest available Annual Percentage Yields (APYs) in each category, helping individuals make informed decisions when considering CD investments.

Best CD Rates for August 2023

Today, the national 3-month CD offers a top rate of 5.35% APY, indicating an increase. The leading 18-month CD, which previously provided 5.75% APY on a 15-month term, is no longer available, but the same top rate is now offered on a 9-month CD.

What Are CD Rates?

A CD rate refers to the interest rate provided by financial institutions on a certificate of deposit account. These rates are generally higher than those offered on traditional savings accounts, as they incentivize customers to deposit and keep their money in a CD for a specific duration.

The specific interest rate for a CD is influenced by various factors. Economic conditions, including market trends and inflation rates, play a significant role in determining CD rates. The interbank competition also affects the rates, as financial institutions strive to attract customers by offering competitive rates. Additionally, the federal funds rate set by the central bank, such as the Federal Reserve, impacts the overall interest rate environment, including CD rates.

Financial institutions consider these factors when calculating CD rates to strike a balance between attracting deposits and managing their profitability. Customers can compare CD rates across different banks and choose the best option that aligns with their financial goals and the desired duration of their investment.

Where Are CD Rates Headed This Year?

Despite already being at record levels, there is a possibility that CD rates could rise even higher in the near future. This is primarily due to the expected increase in the federal funds rate by the Federal Reserve at its upcoming meeting. The federal funds rate has a significant impact on the rates offered by banks and credit unions for CDs.

The Federal Reserve has been actively addressing high inflation through successive rate hikes since March 2022. The cumulative increase has resulted in today's savings and CD rates reaching their highest levels since 2007. This favorable environment has benefited CD shoppers and individuals holding cash in high-yield savings or money market accounts.

While the Fed kept its benchmark rate unchanged at its June meeting, indicating a need to assess the effects of previous rate hikes, recent statements from Fed Chairman Jerome Powell, along with the release of meeting minutes, suggest the possibility of two more rate hikes this year.

However, market expectations have slightly changed following data showing a lower-than-expected increase in inflation for June. These indications of easing inflation have prompted investors to revise their predictions, with many now speculating that the July rate hike may be the last for the year.

It is important to note that forecasts regarding future rate moves by the Federal Reserve should be approached with caution, as they are based on the latest economic data and can be subject to rapid changes. Nevertheless, it is highly likely that any rate hike implemented by the Fed will result in a modest increase in CD rates. However, once the Fed signals the end of its rate hikes, it is probable that CD rates will have reached their peak.

When will CD Rates Go Up Again?

Bankrate predicts that the national average for one-year CDs will rise to an estimated 1.8% by the end of 2023, representing an increase from the 1.38% average at the end of 2022. Additionally, it is projected that the national average for five-year CDs will reach 1.5% by the end of this year, while some of the top-yielding accounts may offer rates as high as 4.1%.

This anticipated increase in CD rates reflects the ongoing efforts of financial institutions to adjust to changing economic conditions and the Federal Reserve's monetary policy. As economic indicators improve and inflation concerns persist, banks may respond by offering higher rates on CDs to attract and retain customers.

While these national average projections provide a general outlook, it's important to note that CD rates can vary significantly among different banks and credit unions. Factors such as market competition, institution size, and regional economic conditions can influence the specific rates offered by individual financial institutions.

For consumers considering CD investments, it is advisable to compare rates from multiple sources and consider factors such as minimum deposit requirements, early withdrawal penalties, and overall financial goals. By staying informed and conducting thorough research, individuals can make more informed decisions regarding their CD investments and potentially benefit from higher returns.