If you’re looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available.

What are the best CD rates today?

CD rates are relatively high compared to historical averages. This is especially true for shorter terms (around a year or less). For short-term CDs, you can expect the top offers to hover around 5.00% APY. Longer-term CDs, however, are a bit lower. Still, you can find CDs with two- or three-year terms around 4% APY.

Today, the highest CD rate is offered by Marcus by Goldman Sachs on its 1-year CD. Account holders can earn 4.60% APY with a minimum deposit of $500 required. The next-highest rate is offered by Capital One, which has an 11-month CD that pays 4.30% APY with no minimum opening deposit.

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

CD rate predictions for 2024

After years of rock-bottom interest rates, the Federal Reserve began raising its target rate in March 2022 to combat inflation. Since then, CD rates have been on an upward trajectory, reaching highs we haven’t seen in about 15 years.

However, the Fed decided this week to begin decreasing the federal funds rate in light of slowing inflation and an overall improved economic outlook.

The federal funds rate doesn’t directly impact deposit interest rates, though they are correlated. When the Fed lowers rates, financial institutions typically follow suit (and vice versa). So now that the Fed has lowered its rate, CD rates are expected to fall as well. That’s why now may be a good time to put your money in a CD and lock in today’s best rates.

How to open a CD

The process for opening a CD account varies by financial institution. However, there are a few general steps you can expect to follow:

• Research CD rates: One of the most important factors to consider when opening a CD is whether the account provides a competitive rate. You can easily compare CD rates online to find the best offers.

• Choose an account that meets your needs: While a CD’s interest rate is a key consideration, it shouldn’t be the only one. You should also evaluate the CD’s term length, minimum opening deposit requirements, and fees to ensure a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that’s too long, otherwise you’ll be subject to an early withdrawal penalty if you need to pull out your funds before the CD matures.

• Get your documents ready: When opening a bank account, you will need to provide a few pieces of information, including your Social Security number, address, and driver’s license or passport number. Having these documents on hand will help streamline the application process.

• Complete the application: These days, many financial institutions allow you to apply for an account online, though you might have to visit the branch in some cases. Either way, the application for a new CD should only take a few minutes to complete. And in many cases, you’ll get your approval decision instantly.

• Fund the account: Once your CD application is approved, it’s time to fund the account. This can usually be done by transferring money from another account or mailing a check.

Read more: Step-by-step instructions for opening a CD

Frequently asked questions

Who is offering the highest CD rates right now?

Among our partners, the highest CD rate is currently offered by Marcus by Goldman Sachs on its 1-year CD. This account pays 4.60% APY and requires a $500 minimum deposit.

Can you get 6% on a CD?

There are a few CDs that pay 6% APY. However, these are generally offered by credit unions, which you must qualify to join before opening an account. Research the local credit unions in your area and find out if you qualify for membership.