APYs Top 5% Before Today’s Presidential Debate. Best CD Rates for Today, June 27, 2024

Want to score a great rate on a certificate of deposit? The sooner you act, the better. CD rates remain high following the Federal Reserve’s latest rate pause, but experts predict at least one cut before the year is out. When that happens, CD rates will drop, too.

“I would expect the path to point to lower CD rates in the second half of the year,” 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%. And since your rate is fixed when you open a CD, you’ll continue to earn a high APY even if overall rates fall. In recent months, we’ve seen banks lower rates in anticipation of Fed cuts, so the clock is already ticking on your chance to lock in a great APY.

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:

How Fed decisions affect CD rates

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. When the Fed raises this rate, banks tend to raise APYs on consumer products like savings accounts and CDs to boost their cash reserves and stay competitive. When the Fed cuts this rate, APYs on these products drop, too.

Beginning in March 2022, the Fed raised the federal funds rate 11 times to combat record-high inflation, and CD rates skyrocketed, with some accounts offering APYs over 5.5% heading into fall 2023. But as inflation began to show signs of cooling, the Fed paused rates at its September 2023 meeting — and every meeting since then. As a result, CD rates plateaued and then began dropping as experts predicted rate cuts in the second half of 2024.

Where will CD rates go next?

Over the past few weeks, CD rates held relatively steady as banks awaited and then responded to the Fed’s June decision to pause rates for the seventh consecutive time. After months of regular APY cuts across a variety of banks and CD terms, rates seem to have leveled off. And if experts are correct about the future of Fed rate cuts, they should remain elevated for at least a while longer.

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

Experts anticipate at least one rate cut later this year, which means CD rates are likely to begin falling again.

“Pending any hiccups to inflation, unemployment or the overall economy, the Fed is looking to cut rates at least once before the end of the year,” said Dana Menard, CFP, founder and lead financial planner at Twin Cities Wealth Strategies. “With the current rate of inflation, I’d expect to see the rate cut after summer and more likely in the fourth quarter.”

Opening a CD today allows you to lock in a high APY and protect your earnings from rate drops.

Why you shouldn’t sleep on today’s CD rates

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. “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.