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Taking on new debt is a costly endeavor right now. After all, the Federal Reserve’s benchmark rate is still paused at close to a two-decade high, so the interest rates on borrowing options, like personal loans and credit cards, are significantly higher than they were just a few years ago. So, it makes sense to try and avoid borrowing money now if you can. Otherwise, you’ll be paying a hefty sum in interest over the life of your loan.
But what you may not want to avoid are the high rates being offered on interest-bearing accounts, like high-yield savings accounts and certificates of deposit (CDs). Thanks to today’s high-rate environment, the interest rates on these types of accounts are better than they’ve been in many years. For example, it’s possible to find both high-yield savings and CD accounts offering rates well above 5% right now, so the returns you earn could be substantial.
Unlike savings accounts, though, CD accounts come with fixed rates, meaning that you won’t have to worry about any future rate cuts impacting your earnings potential prior to your CD account maturing. And, today’s unusual rate environment has led to short-term CDs, in particular, offering some of the highest rates available now. So between those and the other benefits, opening a short-term CD account could be a smart move this June. Below, we’ll list some of the top options to help you get started.
Compare today’s best short- and long-term CD account options here.
The best short-term CDs to open this June (up to 5.65% APY)
If you want to invest in a short-term CD this month, the following options could be worth considering:
The best 3-month CDs to open in June
MutualOne Bank — 5.65% APY: This CD comes with a $500 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to three months of interestShoreham Bank — 5.50% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to three months of interestBask Bank — 5.35% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 30 days of interestDow Credit Union — 5.30% APY: This CD comes with a $500 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 45 days of interestMerchants Bank of Indiana — 5.25% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to three months of interest
The best 6-month CDs to open this June
Inova Federal Credit Union — 5.50% APY: This CD comes with a $200 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 90 days of interestMutualOne Bank — 5.40% APY: This CD comes with a $500 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, an early withdrawal penalty may applyBask Bank — 5.35% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 90 days of interestPrime Alliance Bank — 5.30% APY: This CD comes with a $500 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 30 days of interestAble Banking — 5.30% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 90 days of interest
The best 9-month CDs to open this June
Shoreham Bank — 5.50% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to six months of interestNASA Federal Credit Union — 5.35% APY: This CD comes with a $10,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 182 days of interestForbright Bank — 5.30% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 90 days of interestWestern State Bank — 5.25% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, an early withdrawal penalty may applyPacific National Bank — 5.25% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, an early withdrawal penalty may apply
The best 1-year CDs to open this June
Chadron Federal Credit Union (13-month CD) — 5.38% APY: This CD comes with a $500 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 180 days of interestCIBC Bank USA (13-month CD) — 5.36% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 130 days of interestCFG Bank — 5.30% APY: This CD comes with a $500 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 180 days of interestPeoples Credit Union (CO) — 5.31% APY: This CD comes with a $100 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, an early withdrawal penalty may applyBask Bank — 5.30% APY: This CD comes with a $1,000 minimum opening deposit requirement; if you withdraw your money from the CD account before it matures, the early withdrawal penalty is equal to 90 days of interest
Get started with a top CD account now.
The bottom line
While the current economic environment isn’t great for those who need to borrow money, there are someupsides for savers. The high rates being offered on short-term CD accounts are one of them. By opening the right short-term CD account, you can start earning a top rate on your money — one that’s guaranteed for the full CD term. And, if rates climb higher over the next few months, the shorter terms tied to these CDs give you the flexibility you need to capitalize on that trend. So if you aren’t earning interest with a short-term CD just yet, you may want to open one this June and start raking in the big returns on your savings.
Angelica Leicht is senior editor for Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
