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Best CD Rates Today – Score a High Interest Rate While You Still Can, June 3, 2024

APYs up to 5.35% won't last forever. Here's where you can find them and maxmize your earning potential.

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Key takeaways

  • Top CDs currently offer APYs up to 5.35%.
  • The Fed is expected to hold rates steady next week, so rates are likely to stay high, but they may dip slightly.
  • By opening a CD now, you can lock in today’s high rates and protect your earnings from any future rate cuts.

Certificate of deposit rates remain attractive -- for now. Last week, we saw CD annual percentage yields, or APYs, remain largely unchanged across the banks we track at CNET. But with the Federal Reserve meeting again next week, it’s anybody’s guess how long high APYs will stick around.

Top view of piggy bank and alarm clock,Malaysia
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Today’s top CDs offer APYs of up to 5.35%. That’s more than three times the national average for some terms. And since your rate is locked in when you open a CD, you’ll enjoy the same returns even if overall rates drop – which many experts predict they will later this year. So, the sooner you open an account, the greater your earning potential may 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%Rising 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 3, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

How long will CD rates stay elevated?

Earlier this year, experts predicted three rate cuts by mid to late 2024. But inflation has remained stubbornly high, and the Fed chose to pause rates at its last six Federal Open Market Committee 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 be only 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.

But though the future of CD interest rates is unclear, one thing is certain: Locking in today’s high APYs will protect your earnings from rate cuts when they do happen.

How Fed decisions impact 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 with last week:

TermCNET average APYWeekly change*Average FDIC rate
6 months4.76%No change1.79%
1 year4.99%-0.20%1.80%
3 years4.12%No change1.42%
5 years3.94%-0.25%1.40%
APYs as of June 3, 2024. Based on the banks we track at CNET.
*Weekly percentage increase/decrease from May 28, 2024, to June 3, 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.

What to look for in a CD account

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.

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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