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Top CD rates today: May 3, 2024 | 5 terms earn APYs above 5%

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Key takeaways

  • Today's leading CD rate across terms is 5.36% APY, which is offered on a one-year CD.
  • In addition to choosing a CD based on APY, be sure to pick a term that suits your financial goals.
  • Highest CD rates on most terms are at least triple their national averages.

The Federal Reserve chose to hold rates steady this week during its rate-setting meeting. This could be good news for savers, because annual percentage yields (APYs) on competitive CDs tend to move in lockstep with Fed rate moves. APYs on high-yielding CDs remain elevated, overall.

“The Fed statement made special mention of the fact that there has been a noticeable lack of progress in the past few months toward the goal of 2 percent inflation,” says Greg McBride, CFA, Bankrate’s chief financial analyst. Calling that out in the first paragraph is tantamount to saying that interest rate cuts are not coming soon.”

The table below shows top CD rates for the most common terms, as well as national averages and the amount you can earn in interest with a $5,000 deposit.

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% 1.22% $65
6-month Popular Direct 5.30% 1.69% $131
9-month Forbright Bank 5.30% N/A $197
1-year CIBC Bank USA 5.36% 1.76% $268
18-month First Internet Bank of Indiana 5.04% 1.80% $383
2-year First Internet Bank of Indiana 4.82% 1.51% $494
3-year First Internet Bank of Indiana 4.66% 1.41% $732
4-year First Internet Bank of Indiana 4.50% 1.47% $963
5-year First Internet Bank of Indiana 4.55% 1.41% $1,246


Note: Annual percentage yields (APYs) shown are as of May 3, 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 did the Federal Reserve do with rates this week?

The Fed chose to hold rates steady on May 1, which marked the sixth rate-setting meeting that rates were left untouched. Rates stand at a 23-year high, and the Fed has kept them unchanged recently due to stubborn inflation. After this week’s meeting, the next Fed meeting is scheduled for June 11-12.

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.

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 Bankrate's McBride. “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.