A certificate of deposit (CD) offers a secure way to store your savings while earning a reliable return. However, interest rates on CDs can vary widely. Read on to learn more about current CD rates and where to find high-yield CDs with competitive rates.

What are the best CD rates today?

As of July 10, 2024, CD rates have remained high by historical standards, especially for shorter terms. For example, it's possible to find rates of 5.00% APY or higher for terms of about one year and under. Although interest rates for longer-term CDs aren't quite as high, the best available rates still hover near 4% APY for terms of three years or more.

Here is a look at some of the best CD rates available today from our verified partners:

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Will CD rates go down soon?

CD rates are tied to the federal funds rate; when the Fed increases its target rate, deposit account rates usually follow suit, and vice versa.

There is speculation that the Federal Reserve may lower interest rates later this year. The Fed has held interest rates steady so far in 2024, with a target rate of 5.25% - 5.50%. However, it has indicated the need to eventually cut rates as inflation cools and economic growth improves​. Fed Chairman Jerome Powell declined to provide a time frame on when any cuts might happen, but most experts agree that rates will come down in the near future.

If the Fed does lower interest rates, CD rates will likely fall as well. That means now might be the last chance for savers to lock in today’s higher CD rates.

Read more: Can you gift a CD?

Is now a good time to invest in a CD?

Whether or not you should put your money in a CD depends on several factors. Earning a competitive interest rate is important, but it’s not the only consideration to keep in mind. Here’s a closer look at some of these key factors to think about:

• Interest rates: CDs make for a more attractive investment option when interest rates are high or trending downward since they lock in the current rate for the entire term. Considering the recent trends in interest rates, it could be a good time to put your money in a CD and secure a guaranteed rate of return.

• Financial goals: CDs are a safe investment choice if you're looking to preserve capital and earn a steady return. They are insured by the FDIC up to the federal limit and can’t lose money in most cases, making them a low-risk option. That said, if you’re saving for a long-term goal like retirement, a CD may not be the best choice since market investments tend to provide higher returns, on average.

• Liquidity needs: CDs require you to lock in your money for a set period, known as the term. If you think you’ll need to access your money before the term ends, you may want to avoid CDs, as they come with early withdrawal penalties. A high-yield savings account or other type of deposit account may be a better option.

Read more: How much do you need to open a CD?

Where to find the best CD rates

CDs are available from most banks. However, if you’re interested in opening a CD, it’s important to look beyond your current bank. Not all CDs offer competitive rates, even in a high interest rate environment. That’s why comparing multiple CD account options is important, especially among financial institutions that are known for offering higher rates.

• Online banks: One of the best places to find high-yield CDs is online banks. Since they are less expensive to operate than traditional brick-and-mortar banks, online banks can pass on those savings to customers in the form of lower fees and higher rates on deposits. So, if you’re interested in opening a CD with a high rate, online institutions are a great place to start.

• Credit unions: As not-for-profit financial cooperatives, credit unions tend to offer better rates and lower fees than for-profit banks. Research the local credit unions in your area, as well as online credit unions, and find out if you qualify to join any.

• Community banks: Local banks strive to serve their communities and often provide more affordable and personalized service than large, national banks. They also typically offer more competitive interest rates on deposits.