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Top CD rates today: April 29, 2024 | How this week’s Fed decision could impact rates

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Key takeaways

  • Ahead of this week's Federal Reserve rate-setting meeting, the top APY on a CD across terms remains 5.36%.
  • The highest yields have held steady in April, nearly across the board.
  • National averages are significantly lower than top rates, so it pays to shop around.

In the final days of April, leading annual percentage yields (APYs) on certificates of deposit (CDs) are between 4.50 percent and 5.36 percent on terms between three months and five years. Top rates have held steady in the month of April, except for some slight fluctuations in the highest rate on a one-year term.

One factor that influences CD yields is when the Federal Reserve changes interest rates. APYs on CDs tend to increase when the Fed raises rates or decrease when the Fed lowers rates. The Fed is scheduled to meet this week, and Fed officials are widely expected to hold rates steady due to persistently elevated inflation.

Bankrate monitors the top and average rates every weekday, and you’ll find today’s top CD rates in the table below.

Today's CD rates by term

CD term Institution offering top APY Highest APY National average APY Estimated earnings on $5,000 with top APY
3-month Popular Direct 5.30% 1.20% $65
6-month Popular Direct 5.30% 1.68% $131
9-month Forbright Bank 5.30% N/A $197
1-year CIBC Bank USA 5.36% 1.74% $268
18-month First Internet Bank of Indiana 5.04% 1.82% $383
2-year First Internet Bank of Indiana 4.82% 1.50% $494
3-year First Internet Bank of Indiana 4.66% 1.40% $732
4-year First Internet Bank of Indiana 4.50% 1.49% $963
5-year First Internet Bank of Indiana 4.55% 1.41% $1,246

Note: Annual percentage yields (APYs) shown are as of April 29, 2024. APYs for some products may vary by region.

N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

What will the Federal Reserve do with rates this week?

There’s a good chance the Fed will hold rates steady this week, which most market watchers believe will happen. Fed Chair Jerome Powell recently said the Central Bank would likely delay rate cuts due to inflation remaining elevated. After this week’s meeting, the Fed's next rate-setting meeting is scheduled for June 11-12, 2024.

What the current rate environment means for CDs

In 2022 and 2023, the Federal Reserve raised its benchmark interest rate a total of 11 times, bringing its current target range to a 23-year high of 5.25-5.50 percent. However, the Fed has left rates unchanged for five straight meetings, due to inflation not slowing as quickly as it has in the past.

Yields on competitive savings accounts and CDs tend to move in lockstep with the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. While the Fed has held rates steady since July 2023, top CD APYs ended up peaking in late 2023 and have since been decreasing gradually.

Is it still a good time to open a CD? “Even though CD yields have pulled back a bit, you’re still able to lock in yields that are well in excess of inflation and do so for multiple years,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “The declines will likely accelerate as we get closer to the Fed beginning to cut interest rates, so there is no sense in waiting.”


Research methodology

Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.