Best CD Rates Today, May 24, 2024: Don't Pass Up APYs as High as 5.35% (2024)

Certificate of deposit rates are still attractive, despite gradually falling over the past several months. And the Federal Reserve’s latest rate pause means we’re likely to enjoy high rates for a while longer. But many experts expect the Fed to cut rates later this year, so the clock is ticking on your chance to secure a high annual percentage yield, or APY.

Today’s best CDs earn up to 5.35% APY, more than three times the national average for certain terms. And since your rate is fixed when you open a CD, you’ll be guaranteed the same returns even if rates fall in the future. But you need to know where to look to find the highest APYs.

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:

How long will CD rates stay high?

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, 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.

What affects 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. 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’s 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 reevaluate 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:

Reasons to open a CD today (APY isn’t the only one)

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. 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.