Best CD Rates Today - The Clock Is Ticking on High APYs, June 7, 2024 (2024)

There’s still time to get a great rate on a certificate of deposit. CD rates remain high following the Federal Reserve’s last rate pause, with top CDs earning up to 5.35% annual percentage yield, or APY. That’s more than three times the national average for some terms. But the clock is ticking.

Experts expect the Fed will pause rates again at its next Federal Open Market Committee meeting on June 11-12, but it could begin lowering rates as early as July. By opening a CD now, you can lock in today’s high APYs for the entire CD term, protecting your earnings from future rate drops.

Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.

Today’s best CD rates

Here are some of the top CD rates available right now and how much you could earn by depositing $5,000 right now:

Will high CD rates stick around much longer?

Earlier this year, experts predicted three rate cuts in mid-to-late 2024. But inflation has remained stubbornly high, and the Federal Reserve chose to pause rates at its last six FOMC meetings. As a result, some experts now believe rate hikes are more likely than rate cuts in the coming months. Those who think rate cuts are still possible this year say there may only be two instead of three.

“Fed Chair Powell has indicated that he wants to cut rates this year, and I don’t think his colleagues on the FOMC will embarrass him by not cutting at least once. But I don’t think the conditions for cutting rates will be satisfied until late this year,” said economist Robert Fry.

The Fed’s next meeting is June 11-12, and its decision will give us more insight into where CD interest rates will go next. But whatever it decides, one thing is certain: Locking in today’s high APYs will protect your earnings from rate cuts when they do happen.

How the Fed influences CD rates

The Fed doesn’t directly set CD interest rates, but its decisions have ripple effects. When the Fed raises the federal funds rate -- which determines how much it costs banks to borrow and lend money to each other -- banks tend to follow suit, raising APYs on consumer products like savings accounts and CDs to remain competitive.

In March 2022, the Fed began steadily raising the federal funds rate to combat record-high inflation, and CD rates took off. Here’s how average CD rates moved from 2010 to 2023, according to CNET sister site Bankrate:

As inflation started to show signs of cooling, the central bank paused rates at its last six meetings. As a result, CD rates plateaued and then began dropping as experts predicted rate cuts in the second half of 2024. APYs have held relatively steady over the past week, but that could all change depending on the Fed’s decision at its upcoming June 11-12 FOMC meeting.

Here’s where CD rates stand compared to last week:

Top reasons to open a CD today

With rates still attractive, now’s the time to open a CD and lock in a high APY. But a fixed rate isn’t the only perk you’ll enjoy by opening a CD today.

CDs are insured up to $250,000 per person, per bank, as long as the bank is insured by the Federal Deposit Insurance Corporation. Credit unions offer the same protection through the National Credit Union Administration. That means your money is safe up to the deposit limits if the bank fails.

Plus, unlike investments such as stocks, CDs are low-risk. You won’t lose your principal deposit or the interest you’ve earned unless you run into early withdrawal penalties -- which you can easily avoid by choosing the right term for your needs.

How to choose the best CD account for you

A competitive APY is important, but there are other things you should consider when comparing CD accounts:

• When you’ll need your money: Early withdrawal penalties can reduce your interest earnings. So, be sure to choose a term that fits your savings timeline. “Different CDs have different maturity dates, so you’ll want to make sure the CD matures before you’ll need the money,” said Keith Spencer, CFP, founder and financial planner at Spencer Financial Planning, LLC. “For example, if you’re planning on purchasing a car a year from now and would like to put the money in a CD in the meantime, you’ll want to choose a CD with a maturity date of one year or less.” Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d get with a traditional CD of the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account -- typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow down your options.
• Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
• Federal deposit insurance: Make sure any institution you’re considering is an FDIC or NCUA member so your money is protected if the bank fails.
• Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about any bank you’re considering. You want a bank that’s responsive, professional and easy to work with.

Methodology

CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.

The current banks included in CNET’s weekly CD averages are: Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America, Connexus Credit Union.