If you’ve been thinking about opening a certificate of deposit, now’s the time to do it. After years of sky-high CD rates, annual percentage yields on CDs have been falling for months, and the Federal Reserve’s rate cut last week has them plummeting.
You can still find APYs as high as 5.10% with today’s best CDs, but the clock is ticking. The sooner you open a CD, the better the rate you’re likely to lock in and the greater your earning potential could be.
Read on to learn where you can score one of 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:
APYs as of Sept. 20, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.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 decisions play a key role in where banks and credit unions set them. The Fed regularly adjusts the federal funds rate -- which determines how much it costs banks to borrow and lend money to each other -- to keep the US economy in check.
When inflation is high, the Fed raises this rate to discourage borrowing, decrease consumer spending and drive prices down. In response, banks typically raise APYs on consumer products like CDs and savings accounts to boost their cash flow and remain competitive.
Starting in March 2022, the central bank raised the federal funds rate 11 times to fight rampant inflation, and CD rates skyrocketed -- reaching as high as 5.65% APY for the top CDs we track at CNET. As inflation began cooling, the Fed held rates steady eight times starting in September 2023, and APYs largely held steady, too.
As inflation continued to cool and banks anticipated a Fed rate cut, they started dropping APYs across terms -- slowly at first, and faster in recent weeks. The Fed’s rate cut last week only accelerated this drop.
Here’s where CD rates stood at the start of this week compared to the start of last week:
| Term | Last week’s CNET average APY | This week’s CNET average APY | Weekly change |
| 6 months | 4.57% | 4.51% | -1.31% |
| 1 year | 4.62% | 4.56% | -1.30% |
| 3 years | 3.86% | 3.82% | -1.03% |
| 5 years | 3.75% | 3.71% | -1.07% |
*Weekly percentage increase/decrease from Sept. 9, 2024, to Sept. 16, 2024.
With experts predicting the Fed will cut rates again at its November and December meetings, CD rates are likely to continue plummeting.
“The market is pricing in aggressively lower interest rates by year-end,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors. “They could be as much as 1% lower in a few months. If CDs are the right option for you, timing is critical because the path for rates is almost assuredly lower.”
When you’re comparing your CD options, a competitive APY is important. 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 include 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 and Connexus Credit Union.