If you want to maximize your earnings with a certificate of deposit, there’s no time to waste. With the Federal Reserve expected to cut interest rates in just a few days, the longer you wait to open a CD, the lower your earning potential could be.
Today’s best CDs offer annual percentage yields, or APYs, as high as 5.25% -- more than double the national average for some terms. But APYs have been falling for weeks as banks prepare for a Fed rate cut, and if one comes to pass, they’ll likely only fall further. By locking in a top rate today, you can protect your earnings from additional rate cuts.
Here’s where you can find today’s best APYs.
These are some of the highest CD rates today and how much you could earn by depositing $5,000 right now:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.25% | CommunityWide Federal Credit Union | $129.57 |
| 1 year | 5.00% | CommunityWide Federal Credit Union; Limelight Bank | $250.00 |
| 3 years | 4.30% | CommunityWide Federal Credit Union | $673.13 |
| 5 years | 4.10% | BMO Alto | $1,112.57 |
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
The Fed doesn’t directly set CD rates, but its actions have ripple effects. The Fed regularly adjusts the federal funds rate to stabilize the economy. When inflation is high -- as it’s been for years -- the Fed raises this rate to discourage borrowing and decrease consumer spending in the hopes that this drives prices down. The federal funds rate determines how much it costs banks to borrow and lend money to each other, so when the Fed raises this rate, banks tend to raise APYs on consumer products like CDs and savings accounts.
The Fed raised rates 11 times since March 2022 to fight rampant inflation, and CD rates skyrocketed. As inflation started to cool, the Fed held rates steady eight times starting in September 2023, and APYs largely held steady too.
In recent weeks, banks have been slashing APYs across CD terms in anticipation of a Fed rate cut this month. And with the latest inflation report showing inflation is nearing the Fed’s 2% target, all signs point to a cut when the Fed meets this week on Sept. 17-18. If that proves true, APYs will likely continue plummeting.
Here’s where CD rates stand compared to last week:
| Term | Last week’s CNET average APY | This week’s CNET average APY | Weekly change* | |
| 6 months | 4.57% | 4.57% | No change | |
| 1 year | 4.64% | 4.62% | -0.43% | |
| 3 years | 3.87% | 3.86% | -0.26% | |
| 5 years | 3.75% | 3.75% | No change |
*Weekly percentage increase/decrease from Sept. 3, 2024, to Sept. 9, 2024.
“I think CD rates have been pricing in the potential for a rate cut for some time,” said Noah Damsky, CFA, principal of Marina Wealth Advisors. “A rate cut would validate the trajectory and likely result in further declines in CD rates going forward in anticipation of more cuts.”
In other words: The sooner you open a CD, the higher the APY you’re likely to score.
When you’re comparing your CD options, a competitive APY is important. But it’s not the only thing you should consider. To find the right account for you, take these things into account too:
When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d get with a traditional CD of the same term. Minimum deposit requirement: Some CDs require a minimum amount to open an account -- typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow down your options. Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating. Federal deposit insurance: Make sure any bank or credit union you’re considering is an FDIC or NCUA member so your money is protected if the bank fails. Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that’s responsive, professional and easy to work with.CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The current banks included in CNET’s weekly CD averages are: Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America, Connexus Credit Union.