CD rates are exceptionally high — but they won’t stay this way forever. Rates on savings vehicles like CDs and high-yield savings accounts have skyrocketed since 2022, with many of the top accounts offering rates of return of over 4% to 5%. If you wait too long to lock in rates, however, you could miss out on these high rates of savings.
The Federal Reserve has been raising interest rates over the last 18 months in an effort to fight high inflation, lifting the federal funds rate a total of 11 times. The fed funds rate, a key overnight bank lending rate that impacts all kinds of other rates, is currently set at a target range of 5.25% to 5.5%, which is the highest its been in 22 years. The bright side, however, is that when interest rates rise, savings rates typically do as well.
At its last meeting, the Federal Reserve decided to hold off on another rate hike and keep the federal funds rate steady. However, the possibility of another rate hike later this year is on the table. If that happens, rates on savings accounts could inch a little bit higher. On the other hand, as inflation starts to cool, the Federal Reserve may decide to hold rates steady once again and rates on savings accounts could drop. For this reason, it's a good idea to lock into a CD account while rates are still outstandingly high.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
12-month CD, Credit Human — 6% APY
Currently, Credit Human is offering one of the highest rates available on the market. The 12-month CD from Credit Human offers a 6% APY, a rate you aren't likely to find elsewhere. Plus, you won’t have to meet any steep deposit requirements, you’ll just need to maintain a balance of $500 to earn the APY. Deposits at Credit Human are federally insured up to $250,000 by the National Credit Union Administration (NCUA), letting you keep your savings safe.
Normally, longer-term CDs offer higher rates of return than shorter-term CDs. However, the market is experiencing what is called an "inverted yield curve," meaning you’ll earn more from a 1-year CD compared to a 5-year CD. Plus, if you're hesitant about locking away your cash for too long, a 12-month CD can provide a good middle ground between shorter-term and longer-term CDs.
Use our tool below, in partnership with Bankrate, to compare the best CD, widely available rates for you today. It's updated daily.
Related Content
-
I’m 62 and worried about Social Security’s future. Should I take it early?A Social Security shortfall may be coming soon. We ask financial experts for guidance.
-
My First $1 Million: Retired Tech Industry Director, 78, Delaware County, OhioEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
This Savings Account Earns You More Than $4,000. Here's HowSee how a jumbo CD can help you reach your savings goals quicker.
-
Could Trump Accounts be the Best College Savings Option?We compare Trump Accounts to other college savings options.
-
Kiplinger Readers' Choice Awards 2025: National BanksReaders' Choice Awards In our 2025 Readers' Choice Awards survey, readers evaluated financial providers. Find out which national banks came out on top.
-
Kiplinger Readers' Choice Awards 2025: Internet Banks
Readers' Choice Awards In our 2025 Readers' Choice Awards survey, readers evaluated financial providers. Find out which internet banks came out on top.
-
Stacked but Stagnant: All That Cash in Your Checking Account Might Be Holding You BackKeeping too much cash in your checking account might seem safe, but it could be costing you in missed opportunities.
-
Seven Habits Rich People Swear By to Build and Maintain WealthUnlock the secret to lasting financial success by adopting the wealth-building habits of a high-net-worth individual.
-
A Smart Way to Combat Economic Rollercoasters: CD LaddersSavings With rates on CDs remaining high for now, a CD ladder allows you to maximize your returns with flexibility to your cash when you need it.
-
The $425 Million Capital One 360 Savings Settlement: Who’s Eligible for a Payout and What Happened?Capital One agreed to a $425 million settlement over its 360 Savings account interest rates. Here’s what you need to know.
