Best CD rates today: Don't sleep on the best APYs in decades on shorter CD terms — April 30, 2024

Certificates of Deposit (CDs) are currently offering the highest annual percentage yields (APYs) in decades, with rates significantly outpacing inflation. These high rates are available on terms up to five years, providing an opportunity for secure, high-return savings. Digital and online banks, in particular, are offering competitive rates, with some going as high as 5.40% APY.

The surge in CD rates is closely tied to the Federal Reserve's interest rate policies. Despite recent high inflation rates, the Fed has kept the federal funds rate steady, influencing the high APYs on CDs and other savings products. This environment makes CDs a valuable option for those looking to save money in a low-risk, high-return format, especially when considering short-term financial goals or emergency funds.