The Federal Reserve didn't touch interest rates at its June meeting, but it's widely expected to cut them later this year. If that happens, banks are likely to lower CD rates in anticipation -- and some institutions already have.

That means time may be running out to lock in the best available rates. Right now, you can still find CDs offering up to 4.30% APY, but those offers may not last much longer.

How CDs work

A certificate of deposit (CD) is a savings product that offers a fixed interest rate for a set term. You agree to leave your money in the CD for a specific period, usually between a few months and a few years.

In return, your interest rate is guaranteed for the entire term and is FDIC insured up to $250,000, just like your savings account.

And while the best high-yield savings accounts offer comparable APYs, those rates can drop at any time. A CD, on the other hand, locks in your return until the term ends.

Quick CD checklist

If you're thinking of opening a CD, here's what to do:

• Pick your term: Shorter terms offer more flexibility. Longer terms offer more stability.
• Compare rates: Online-only banks often pay the most.
• Open and fund: Most CD deposit minimums start at $500 to $1,000 and can be opened online.
• Avoid early withdrawals: Taking money out early usually triggers a penalty.
• Plan for maturity: When your CD ends, decide whether to reinvest or move your money elsewhere.

For more flexibility, consider setting up a CD ladder: Splitting your savings across CDs with different end dates so you get regular access to part of your funds.

Who should open a CD now?

You might benefit from a CD if:

• You have extra cash you won't need right away
• You want a reliable, fixed return over a set period
• You're working toward a short- or medium-term savings goal
• You already have an emergency fund

And if you think interest rates are heading lower, locking in a CD today could give you a better return than you'll find later.

Lock in your top APY today

Even though a rate cut hasn't happened yet, banks often make moves in anticipation of the Fed. Some have already reduced CD rates, and others could soon follow.

Act now to lock in your high CD rate before they start to slip -- check out our full list of the best offers today to get started.