Best CD Rates as of March 19, 2024: Potential Fed Decision Impact on APYs

Certificates of Deposit (CDs) are still offering attractive rates as the Federal Reserve begins its March rate-setting meeting. The top annual percentage yield (APY) on CDs remains at 5.50 percent, while yields on terms ranging from two to five years hover between 4.50 percent and 4.82 percent APY.

Market experts anticipate that the Fed will maintain rates this week, although there is a possibility of rate cuts in 2024. It is advisable to lock in a competitive rate now to maximize returns.

It is important to note that your funds are protected when invested in a CD with a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA). These institutions provide insurance for up to 0,000 per depositor, per insured bank or credit union, across various account ownership categories.

Early withdrawal from a CD typically incurs a penalty, resulting in a loss of interest and potentially even a portion of the principal amount deposited.

Bankrate calculates national average APYs for CDs by considering competitive rates offered by online banks and lower rates from traditional brick-and-mortar banks. The methodology has been updated to include weekly surveys of over 500 banks and credit unions, ensuring a comprehensive and accurate representation of CD rates in the market.