Best CD Rates Today: Boost Your Returns With These Top CDs, June 21, 2024 (2024)

Key Takeaways

  • You can earn up to 5.35% APY with today’s top CDs.
  • Experts anticipate rate cuts later this year, so the sooner you lock in a great APY, the higher your earning potential could be.
  • In addition to a great rate, the best CDs offer guaranteed returns, low risk and federal deposit insurance.

Certificate of deposit rates remain high following the Federal Reserve’s latest rate pause last week. But with the possibility of rate cuts later this year, now’s the time to secure a great rate and protect your earnings.

Best CD Rates Today: Boost Your Returns With These Top CDs, June 21, 2024 (1)

Today’s top CDs have annual percentage yields, or APYs, up 5.35%. But experts anticipate the Fed will start lowering rates in the second half of 2024, so the sooner you lock in one of these APYs, the greater your earning potential could be. Your rate is locked in when you open a CD, so your returns will be guaranteed regardless of what the Fed decides 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%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

How long will CD rates stay high?

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 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.

Starting 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. Over the last week, rates remained relatively steady as banks awaited the Fed’s June decision.

Here’s where CD rates are now compared to last week:

Weekly change*TermCNET average APYAverage FDIC rate
-0.21%6 months4.76%1.81%
No change1 year4.99%1.86%
No change3 years4.12%1.44%
No change5 years3.94%1.43%

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

“Since the outlook for rates to come back down from now toward the end of 2024 is still expected, I anticipate that CD rates will likely trend lower in anticipation of the Fed’s eventual rate cut, with longer-term CDs affected more than shorter-term CDs,” said Dana Menard, CFP, founder and lead financial planner at Twin Cities Wealth Strategies.

Locking in today’s high APYs will protect your earnings from rate cuts when they do happen.

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How you’ll benefit from 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.

Factors to consider 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, 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.

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Best CD Rates Today: Boost Your Returns With These Top CDs, June 21, 2024 (2024)

FAQs

What bank is paying 5% on CDs? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
Citibank5.13%3 months
MYSB Direct5.10%18 months
Morgan Stanley5.00%18 months
Bask Bank5.00%18 months
31 more rows
13 hours ago

Who is paying the highest CD rates right now? ›

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.

Who has a 7% CD? ›

Right now, there aren't any financial institutions offering 7% interest on a CD. Alpena Alcona Area Credit Union, a local financial institution in Michigan, previously offered a 7.19% APY on a 7-month CD special, but that offer has ended. There are a few financial institutions with CDs paying 6% APY or more, though.

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.

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

7% Interest Savings Accounts: What You Need To Know
  • As of June 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.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Should I put $50,000 in a CD? ›

For example, U.S. Bank says a general rule of thumb is for cash and cash equivalents (including CDs) to make up 2% to 10% of your portfolio. Let's assume you have a total of $50,000 of investments and cash. In this scenario, you may want to put $2,500 -- 5% of your $50,000 -- into a CD.

How much does a $10,000 CD make in a year? ›

Earnings on a $10,000 CD Over Different Terms
Term LengthAverage APYInterest earned on $10,000 at maturity
1 year2.61%$264.14
18 months2.22%$338.29
2 years2.08%$424.40
3 years1.95%$601.95
3 more rows
Jun 14, 2024

Can I put 100k in a CD? ›

Those with $100,000 or more may want to consider depositing their money into a jumbo certificate of deposit (CD) that's insured through a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA).

How much money do you make on a $5000 CD? ›

$5,000 at 4.40%: If you open a 3-year CD at 4.40% with a $5,000 deposit, you can expect to earn $689.47 in interest. That would bring your total account balance to $5,689.47 upon maturity. $5,000 at 4.60%: If you open a 3-year CD at 4.60% with a $5,000 deposit, you can expect to earn $722.23 in interest.

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 deposit4.815.35%
Marcus by Goldman Sachs High-Yield certificates of deposit4.805.10%
Bask Bank Certificates of Deposit4.765.35%
Synchrony Bank certificates of deposit4.754.80%
7 more rows

Where can I get 5% interest? ›

Summary of the Best 5% Interest Savings Accounts of 2024
AccountForbes Advisor RatingAnnual Percentage Yield
M1 High-Yield Savings Account4.35.00%
Bask Interest Savings Account4.25.10%
UFB Secure Savings4.1Up to 5.25%
Salem Five Direct eOne Savings4.05.01%
1 more row

How much will a 5 percent CD pay? ›

That all noted, here's how much you can expect to make with a 5% CD interest rate: $500 deposit: $25 for a total of $525 after 12 months. $1,000 deposit: $50 for a total of $1,050 after 12 months. $2,500 deposit: $125 for a total of $2,625 after 12 months.

What is the highest CD rate at bank of America? ›

Key Takeaways:
  • The highest Bank of America CD rate is a 4.75% APY, which is for its seven-month featured term.
  • The bank's one-year flexible CD offers a competitive rate and penalty-free withdrawals.
  • The 13-month featured CD guarantees a 4.30% APY.

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