Best CD Rates Today -- High APYs Remain Following the Fed’s Decision, May 2, 2024

The Federal Reserve is leaving the federal funds rate where it is for now. At its Federal Open Market Committee Meeting this week, it elected to maintain the target range of 5.25% to 5.5%, citing “a lack of further progress toward the Committee’s 2 percent inflation objective” in its May 1 press release.

That means CD rates will remain high for the time being. But with rates trending downward since the end of 2023, it’s still wise to act now if you’ve been considering opening a CD.

Today’s top CDs offer up to 5.35% annual percentage yield, or APY. And since your rate is locked in when you open the account, opening one now can protect you from additional rate drops, which could continue despite the Fed’s latest decision.

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 CD rates have been moving

The federal funds rate impacts certificate of deposit APYs. This 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 their rates on consumer products like savings accounts and CDs to attract new customers -- and their cash.

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

Since July 2023, the central bank has now paused rates at its last six meetings. But with experts predicting it would begin cutting rates later this year, CD rates have been steadily declining since the end of 2023. Here’s where they stand compared to last week:

What yesterday’s Fed decision means for CD rates

Although experts had anticipated three rate cuts later this year, stubbornly high inflation may thwart these expectations. Some experts now say rate hikes are more likely than rate cuts this year. Others are more hopeful and think rate cuts are still possible this year, but we may only see two instead of three.

The Fed stated in its press release, “In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”

But wherever rates go in the future, one thing is certain: Locking in today’s high rates can protect your earnings from rate cuts when they do happen.

Top reasons to open a CD today

With rates as high as they’re expected to go, now’s the time to open a CD and lock in a high APY. But that’s not the only reason to open an account today. CDs offer attractive benefits in any rate environment.

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 unless you run into early withdrawal penalties, which you can easily avoid by choosing the right term.

What to look for in a CD account

In addition to a competitive APY, here’s what you should consider when comparing CD accounts:

• How soon you’ll need your money: Early withdrawal penalties can chip away at your interest earnings. So, be sure to choose a term that fits your savings timeline. You should be comfortable leaving your money untouched for the entire term.
• Minimum deposit requirement: Some CDs require a certain 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 the right account for you.
• Fees: Fees can eat into your earnings. Many online banks don’t charge maintenance 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: Check out sites like Trustpilot to see what customers are saying about any bank you’re considering. You want to know that the bank is 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.