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Best CD Rates Today, June 10, 2024: Maximize Your Earnings With APYs Up to 5.35%

CD rate cuts could be coming as early as next month. Lock in one of these great APYs while you can.

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Key takeaways

  • Today’s best CDs earn up to 5.35% APY.
  • The Fed will likely hold rates steady at its meeting this week, but cuts could start as early as July.
  • By opening a CD now, you can lock in today’s top rates and protect your earnings from future rate drops.

It’s not too late to score a great rate on a certificate of deposit. Today’s top CDs offer annual percentage yields, or APYs, up to 5.35% -- more than three times the national average for certain terms.

hand holding money fanned out
Zooey Liao/CNET

But all eyes are on the Federal Reserve this week as it heads into its next Federal Open Market Committee meeting on June 11-12. While experts anticipate the Fed will announce another rate pause, rate cuts could be on the table as early as July.

So, the sooner you open a CD, the higher the APY you may be able to lock in -- and the greater your earning potential could be.

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:

TermHighest APYBankEstimated earnings
6 months5.35%Bask Bank$132.01
1 year5.35%NexBank$267.50
3 years4.70%MYSB Direct$738.65
5 years4.80%BMO Alto$1,320.86
APYs as of June 10, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

What’s next for CD rates?

Earlier this year, experts predicted three rate cuts in mid-to-late 2024. But with inflation staying stubbornly high, the Federal Reserve chose to keep rates steady at its last six FOMC meetings. All signs indicate that rates will stay the same at the Fed’s June 11-12 meeting this week. Some experts think rate cuts could happen as early as July, but not all experts agree that rate cuts will happen this soon.

“While the expectation is to lower interest rates at some point, now is not the time as inflation still remains higher than the committee’s target of 2%,” said Noah Damsky, principal of Marina Wealth Advisors. “We believe the meeting in July is also too soon to cut interest rates. Realistically, the earliest the Fed will consider lowering interest rates is the September meeting.”

Whatever the Fed decides, one thing is certain: Locking in today’s high APYs will protect your earnings from rate cuts when they do happen.

How Fed decisions affect CD rates

The Fed doesn’t directly set CD interest rates, but its decisions definitely influence them. The federal funds rate determines how much it costs banks to borrow and lend money to each other. So, when the Fed raises this rate, banks tend to follow suit, raising APYs on consumer products like savings accounts and CDs to remain competitive and boost their cash reserves.

This correlation is clear when you look at the numbers over the past few years. In March 2022, the Fed began steadily raising the federal funds rate to combat record-high inflation, and CD rates skyrocketed. Consider how average CD rates moved from 2010 to 2023, according to CNET’s sister site Bankrate:

Note that these numbers represent average CD rates -- top CD rates are often several times the average.

Altogether, the Fed raised the federal funds rate 11 times from March 2022 to July 2023, and CD rates climbed, too, with some accounts offering APYs over 5.5% heading into fall 2023. But as inflation started to show signs of cooling, the Fed 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 in recent weeks, 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:

TermCNET average APYWeekly change*Average FDIC rate
6 months4.77%+0.21%1.79%
1 year4.99%No change1.80%
3 years4.12%No change1.42%
5 years3.94%No change1.40%
APYs as of June 10, 2024. Based on the banks we track at CNET.
*Weekly percentage increase/decrease from June 3, 2024, to June 10, 2024.

Why you should open a CD now

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.

Consider these things when choosing a CD 

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, founder of Spencer Financial Planning. “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 and Connexus Credit Union.

Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
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