Certificate of deposit rates remain high despite the recent Federal Reserve rate cut. However, they’ve been falling for months, and the pace has picked up since the Fed’s decision. That means now’s the time to open a CD and lock in a high annual percentage yield, or APY, before rates fall further.
Today’s best CDs offer APYs as high as 5.10% -- more than double the national average for some terms. And your APY is fixed when you open them, so your earnings won’t drop even if rates continue to fall -- which experts expect they will in the coming weeks and months.
So the longer you wait, the lower the APY you may find. With that in mind, read on to see 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:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.10% | Barclays | $125.91 |
| 1 year | 5.00% | CommunityWide Federal Credit Union | $250.00 |
| 3 years | 4.15% | Marcus By Goldman Sachs, Synchrony | $648.69 |
| 5 years | 4.00% | Alliant Credit Union, BMO Alto, Marcus By Goldman Sachs, MYSB Direct, Synchrony | $1,083.26 |
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 have ripple effects. 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 typically raise APYs on consumer products like CDs and savings accounts to attract new customers and boost their cash flow. When it raises this rate, banks lower their APYs too.
The Fed regularly adjusts the federal funds rate to keep the US economy in check. When inflation is high, it raises this rate to discourage borrowing, lower consumer spending and drive prices down.
Beginning in March 2022, the central bank raised the federal funds rate 11 times to combat record inflation, and CD rates skyrocketed -- reaching as high as 5.65% APY for the top CDs we track at CNET. As inflation began to show signs of cooling, the Fed held rates steady eight times in a row starting in September 2023. APYs largely held steady, too.
But as inflation continued to cool and banks anticipated a Fed rate cut, they started dropping APYs across terms -- slowly at first, then faster since the Fed’s rate cut on Sept. 18 meeting.
Here’s where CD rates stand at the start of this week compared with the start of last week:
| Term | Last week’s CNET average APY | This week’s CNET average APY | Weekly change |
| 6 months | 4.51% | 4.38% | -2.88% |
| 1 year | 4.56% | 4.39% | -3.73% |
| 3 years | 3.82% | 3.70% | -3.14% |
| 5 years | 3.71% | 3.58% | -3.50% |
*Weekly percentage increase/decrease from Sept. 16, 2024, to Sept. 23, 2024.
And experts expect CD rates to keep falling
“I expect the Fed to absolutely cut interest rates again this year,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors. “Not once, but multiple times. Interest rates can easily be half of a percent lower by year-end. I wouldn’t be surprised if we’re 0.75% or 1% lower in December compared to where we are today.”
That means time is of the essence. The longer you wait to open a CD, the lower your earning potential is likely to be.
A competitive APY is important when comparing CD accounts, but it’s not the only thing you should look at. To find the right account for you, consider these things 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.