Best CD Rates Today - Act Now to Snag an APY up to 5.35%, May 23, 2024 (2024)

Key takeaways

  • Today’s best CDs earn APYs as high as 5.35%.
  • Experts anticipate rates will drop in the coming months.
  • Opening a CD today locks in your APY and shields your earnings from future rate cuts.

Certificate of deposit rates remain high following the Federal Reserve’s latest decision to hold the federal funds rate steady. But they’ve been dropping for months, and many experts expect this trend will continue. Fortunately, by opening a CD today, you can lock in current high rates and protect your earnings from additional drops.

Best CD Rates Today - Act Now to Snag an APY up to 5.35%, May 23, 2024 (1)

“A CD can be a great investment for a consumer who wants to lock in a higher rate for a longer time and is comfortable not needing funds during that period,” said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group.

Today’s top CDs offer annual percentage yields, or APYs, up to 5.35% APY -- more than three times the national average for some terms. And since your APY is fixed when you open a CD, you’ll enjoy the same high earnings regardless of where rates go next.

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

Where will CD rates go next?

Before the Federal Open Market Committee meeting earlier this month, experts anticipated the Fed would make three rate cuts later this year. But with inflation remaining stubbornly high, these predictions seem less likely.

The latest Consumer Price Index report shows inflation rose 3.4% year or over year. That’s down slightly from 3.5% in March but still far from the Fed’s 2% target rate. Some experts now believe rate hikes are more likely than rate cuts in the coming months. Others believe rate cuts are still possible in 2024, but we may see only two instead of three.

“I expect the Fed to follow what they’ve been saying by cutting rates a few times before the end of the year,” said Dana Menard, CFP, founder and lead financial planner at Twin Cities Wealth Strategies. “It will likely depend on the status of inflation over the next few months as well as other economic factors that may slow down or expedite the Fed’s schedule for lowering rates.”

But while the future of CD interest rates is up for debate, one thing is certain: Locking in today’s high APYs can protect your earnings from rate cuts when they do happen.

Why CD rates rise and fall

The Fed doesn’t directly set CD interest rates, but its decisions have ripple effects. 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 usually follow suit, raising APYs on consumer products like savings accounts and CDs to attract new customers and pad their cash reserves.

Starting in March 2022, the Fed steadily raised the federal funds rate to combat record-high inflation, and CD rates skyrocketed. Here’s how average CD rates moved from 2010 to 2023, according to CNET sister site Bankrate:

As inflation began to show signs of cooling, the central bank paused rates at its last six meetings. Experts predicted rate cuts in mid-to-late 2024, and CD interest rates began dropping at the end of 2023. The past few weeks have seen a mix of rate cuts and rate hikes as banks re-evaluate their strategies for different CD terms. These fluctuations have been minor, but they reflect the uncertainty over where inflation will go next and what the Fed’s next decision will be.

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

TermCNET average APYWeekly change*Average FDIC rate
6 months4.76%-0.21%1.79%
1 year5.00%No change1.80%
3 years4.12%+0.24%1.42%
5 years3.95%No change1.40%

Benefits of opening 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.

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Factors to consider when comparing CD accounts

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. You should be comfortable leaving your money in the account for the entire term. 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.

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Best CD Rates Today - Act Now to Snag an APY up to 5.35%, May 23, 2024 (2024)

FAQs

Who is offering the highest CD rates right now? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
First National Bank of America5.05%18 months
Morgan Stanley5.05%2 years
LendingClub Bank5.00%18 months
Newtek Bank5.00%18 months
31 more rows
3 days ago

What bank is paying 5% on CDs? ›

Certificates of deposit with at least 5% interest
InstitutionMost Competitive CD TermHighest CD APY Available
CFG Bank12 months5.31%
Credit Human Credit Union18 months*5.25%
Dow Credit Union3 months*5.30%
Popular Direct6 months*5.30%
8 more rows
May 10, 2024

Can you get 6% on a CD? ›

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

Will CD rates go up in May 2024? ›

Since CD rates could fall quite substantially in 2024 and 2025, locking in a long-term rate now—before rates move lower—can be a smart move.

Where can I get 7% interest on my money? ›

7% Interest Savings Accounts: What You Need To Know
  • As of May 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Should I lock in a CD now or wait? ›

Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

Is 5 APY good for a CD? ›

If you have money to save that you won't need to touch for at least six months, a 5% CD may be worth considering. These CDs earn rates well above the national average CD and savings rates, according to the FDIC. However, you should consider more than just APY when deciding whether or not a 5% CD is a good investment.

What is the best 5-year CD rate right now? ›

Best 5-Year CD Rates
  • Department of Commerce Federal Credit Union – 4.45% APY.
  • Colorado Federal Savings Bank – 4.35% APY.
  • Lafayette Federal Credit Union – 4.32% APY.
  • MYSB Direct – 4.31% APY.
  • BMO – 4.30% APY*
  • Quontic Bank – 4.30% APY.
  • OnPath Federal Credit Union – 4.30% APY.
  • Popular Direct – 4.30% APY.

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)5-year FD rate (% p.a.)
DCB Bank8.057.40
Fincare Small Finance Bank8.007.25
RBL Bank8.007.10
AU Small Finance Bank8.007.25
16 more rows

What is considered a good 6 month CD rate right now? ›

Compare the best 6-month CDs
INSTITUTIONSTAR RATINGAPY ON 6-MONTH CDs
Popular Direct certificates of deposit4.815.30%
Marcus by Goldman Sachs High-Yield certificates of deposit4.805.10%
TAB Bank certificates of deposit4.770.00%
Bask Bank Certificates of Deposit4.765.15%
7 more rows

Where can I get 6% interest on savings? ›

Digital Federal Credit Union has an account that pays over 6% APY, but you must meet membership requirements to get started. You also won't earn this high interest rate on your entire Digital FCU savings balance. Plenty of savings accounts are available around the U.S. and still offer great rates — over 5% APY.

What credit union is paying the highest CD rates? ›

Compare the Best CD Rates
InstitutionRate (APY)Term
INOVA Federal Credit Union5.50%6 months
DR Bank5.50%6 months
Vibrant Credit Union5.50%9 months
NASA Federal Credit Union5.50%9 months
14 more rows

How high could CD rates go up? ›

While the federal funds rate climbed steadily in 2022 and 2023, rates have flattened and are expected to fall at some point this year. The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

How high will interest rates go in 2024? ›

But until the Fed sees evidence of slowing economic growth, interest rates will stay higher for longer. The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

What is the best CD rate for $100,000? ›

Compare the Highest Jumbo CD Rates
InstitutionRate (APY)Minimum Deposit
GTE Financial5.38%$100,000
Credit One Bank5.35%$100,000
Third Federal Savings & Loan5.25%$100,000
CD Bank5.25%$100,000
13 more rows

What is the highest rate ever paid on a CD? ›

According to the Federal Reserve, the highest CD rate was for a three-month CD term in December 1980, which reached an average of 18.65%.

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