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There’s no question that savers have had it good for the last year or so. With the Federal Reserve keeping its benchmark rate paused at a two-decade high to temper inflation, rates on interest-bearing accounts, like high-yield savings accounts and certificates of deposit (CDs), have been much higher than they were just a couple of years ago. So, the returns have paid off for savers who put some money into one or more of these types of accounts.
While the Fed’s fight against inflation is working — inflation is cooling faster than expected and is hovering near 3% now — the rates on these accounts are still high overall. But, they may not be for much longer. Should the Fed slash its benchmark rate at its upcoming meeting,scheduled for the end of July, the rates on deposit accounts (and other types of accounts) would fall, reducing the earning potential for savers.
But if you open the right CD account now, you’ll lock in today’s high CD rates for the full account term. That protects you against future rate declines, which are likely to happen at some point in 2024. And, the CDs below offer some of the highest rates available today, so if you’re trying to maximize the earning potential on your savings, the CD accounts outlined below may be worth a look.
Compare today’s top CD options and start earning more interest today.
These 12 CDs offer the highest rates right now (up to 6% APY)
The following CD accounts offer some of the top rates available today:
Third Federal Savings and Loan 6-month bonus CD — 6.00% APY: To open this CD, you’ll need to deposit a minimum of $500. If you need to withdraw your funds from the account before maturity, the early withdrawal penalty is equal to 90 days of interest.Farmers Insurance Federal Credit Union 3-year CD — 5.75% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, the early withdrawal penalty is equal to 180 days of interest.Elements Financial 2-year CD — 5.72% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.Total Direct Bank 6-month CD — 5.51% APY: To open this CD, you’ll need to deposit a minimum of $25,000. If you need to withdraw your funds from the account before maturity, the early withdrawal penalty is equal to 30 days of interest.Shoreham Bank 6-year CD — 5.75% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.Greenwood Credit Union 9-month CD — 5.50% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, the early withdrawal penalty is equal to 180 days of interest.Vibrant Credit Union 9-month CD — 5.50% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.Presidential Bank 7-month CD — 5.50% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.Mountain View Bank of Commerce 6-month CD — 5.50% APY: To open this CD, you’ll need to deposit a minimum of $1,000. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.My Banking Direct 5-month CD — 5.50% APY: To open this CD, you’ll need to deposit a minimum of $2,500. If you need to withdraw your funds from the account before maturity, the early withdrawal penalty is equal to 90 days of interest.Quontic Bank 3-month CD — 5.50% APY: To open this CD, you’ll need to deposit a minimum of $500. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.NexBank 1-year CD — 5.40% APY: To open this CD, you’ll need to deposit a minimum of $2,500. If you need to withdraw your funds from the account before maturity, an early withdrawal penalty may apply.
The bottom line
While inflation has been cooling, today’s high CD rates still offer you the opportunity to capitalize on the high-rate environment and earn higher-than-average returns on your money. But if you plan to open a CD account, you may want to make your move soon. With the Fed expecting to cut rates at least once this year, you’ll want to lock in a rate before that happens.
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.
