WOW.. 16 best long-term CDs to open this June (with rates up to 4.80%)

If you’re in the market for a certificate of deposit (CD), you may want to consider long-term options. Not only are these accounts safe, but long-term CDs give you the ability to lock in today’s competitive returns for years to come.

And, that’s important in today’s interest rate environment.

Thanks to a federal funds rate that remains frozen at a 23-year high, many deposit accounts are offering impressive returns. “The current rates on CDs have been up most of this year and should be considered for one’s portfolio,” explains Michael Morgan, president of the financial planning firm, TBS Retirement Planning. “These rates are running between 4% and 5%.”

But, inflation is cooling. May’s inflation rate was 3.3%. That followed April’s 3.4% inflation rate which followed March’s 3.5% inflation rate – all of which are significantly lower than the 9.1% rate seen in June of 2022. And, if inflation continues to cool, the Fed may reduce its federal funds rate, which could result in reduced returns on CD accounts.

Long-term CDs can lock in today’s strong returns for some time, regardless of what the Fed does with interest rates in the future. But, what are the best long-term CDs to open this June? Find out below.

The Benefits of Long-Term Certificates of Deposit (CDs) in Today’s High-Interest Rate Environment

If you’re in the market for a certificate of deposit (CD), long-term options are worth considering. These accounts are not only safe but also allow you to lock in today’s competitive returns for years to come. In the current interest rate environment, this could be a smart financial move.

Understanding the Current Interest Rate Environment

The federal funds rate remains at a 23-year high, leading many deposit accounts to offer impressive returns. According to Michael Morgan, president of the financial planning firm TBS Retirement Planning, “The current rates on CDs have been up most of this year and should be considered for one’s portfolio. These rates are running between 4% and 5%.”

This high-rate environment results from the Federal Reserve’s strategy to combat inflation. Following the COVID-19 pandemic, inflation rates soared, reaching as high as 9.1%. To address this, the Fed implemented several rate hikes, making CDs particularly attractive.

The Advantages of Long-Term CDs

1. Locking in High Returns

One of the most compelling reasons to consider long-term CDs is the ability to lock in high returns. With rates currently between 4% and 5%, securing a long-term CD now means you can enjoy these rates for the duration of the term, even if interest rates drop in the future.

2. Safety and Security

CDs are considered one of the safest investment options. They are typically insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law, meaning your principal investment is protected. This security makes CDs an attractive option for conservative investors.

3. Predictable Earnings

Unlike other investment vehicles that may be subject to market volatility, CDs offer predictable earnings. The interest rate is fixed at the time of purchase, ensuring that you know exactly how much you will earn by the end of the term. This predictability can be beneficial for long-term financial planning.

Why Act Now?

There is a strong argument that today’s high returns on CDs may not be available for much longer. The Federal Reserve’s rate hikes are designed to fight inflation, and as inflation stabilizes, the need for such high rates may diminish. If the Fed decides to lower rates in the future, the returns on new CDs will likely decrease as well.

Economic Predictions

Economic experts predict that as the post-pandemic inflation rates stabilize, the Federal Reserve might start to lower interest rates. This means that the attractive rates currently offered on CDs could soon decline. Acting now allows you to benefit from the high rates before they potentially drop.

How to Choose the Right Long-Term CD

When selecting a long-term CD, there are several factors to consider:

1. Interest Rate

Compare the interest rates offered by different banks and credit unions. Online banks often provide higher rates than traditional brick-and-mortar institutions due to lower operational costs.

2. Term Length

Long-term CDs typically range from 3 to 5 years. Choose a term length that aligns with your financial goals and liquidity needs. Remember, withdrawing funds before the CD matures usually incurs penalties.

3. FDIC Insurance

Ensure that the CD you choose is FDIC-insured. This insurance protects your deposit up to the legal limit, adding an extra layer of security to your investment.

Example: Maximizing Returns with a Long-Term CD

Let’s consider a practical example. Suppose you invest $10,000 in a 5-year CD with a 4.5% APY. Over the 5-year term, your investment would grow as follows:

Initial Investment: $10,000
Annual Interest: 4.5%
Interest Earned Annually: $450

By the end of the 5-year term, you would earn $2,250 in interest, bringing your total balance to $12,250. This scenario demonstrates the power of locking in a high rate with a long-term CD.


Long-term CDs offer a unique opportunity to lock in high returns in today’s elevated interest rate environment. With the Federal Reserve’s rate hikes driving up returns on deposit accounts, now is an ideal time to consider adding a long-term CD to your portfolio. The safety, security, and predictable earnings of CDs make them a smart choice for conservative investors looking to maximize their returns.

By acting now, you can secure a high rate and protect your investment from future rate drops, ensuring that you make the most of the current economic conditions. Whether you’re a seasoned investor or new to financial planning, long-term CDs provide a reliable and lucrative option for growing your savings.

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