Key takeaways
- Top CDs offer up to 5.30% APY.
- APYs have been falling for months, and this past week has seen an increase in rate cuts.
- Troubling economic news means rates are likely to fall further, making now the time to lock in a high APY and protect your earnings.
If you want to maximize your certificate of deposit earnings, time is of the essence. Annual percentage yields, or APYs, have been gradually falling for months, and over the past week, we’ve seen the pace accelerate.
You can still secure an APY as high as 5.30% with today’s best CDs, but banks have been slashing APYs across terms since the Federal Reserve indicated a rate cut is possible for September. And after a weak July jobs report sparked stock market panic, some economists are calling for an emergency rate cut even earlier. That means the longer you wait to open a CD, the lower your APY might be. By acting now, you can lock in one of today’s top APYs and protect your earnings against additional drops.
Today’s best CD rates
Here are some of the top rates available on today’s best CDs and how much you could earn by depositing $5,000 right now:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.30% | Bask Bank, CommunityWide Federal Credit Union | $130.79 |
| 1 year | 5.25% | Bask Bank | $262.50 |
| 3 years | 4.55% | NexBank | $714.02 |
| 5 years | 4.35% | First Internet Bank of Indiana | $1,186.32 |
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.
Why CD rates are falling
The Fed regularly adjusts the federal funds rate to stabilize the economy. This rate determines how much it costs banks to borrow and lend money to each other, so banks tend to follow the Fed’s lead.
When the Fed raised rates starting in March 2022, APYs on CDs skyrocketed. When the Fed held rates steady starting in September 2023, APYs largely held steady. In recent months, APYs have begun wavering as banks anticipated a rate cut, which Fed Chair Jerome Powell said “could be on the table at the September meeting.”
Following a dismal July labor report, some economists are calling for the Fed to make an emergency interest rate cut sooner, and we’re starting to see APY cuts accelerate across banks. So, the sooner you lock in a high APY, the greater your earning potential could be -- especially if you’re looking for a short-term CD.
“Rate cuts in September will affect the shortest-term CD rates right away,” said Noah Damsky, CFA, principal of Marina Wealth Advisors. “So if you have a need to lock cash up for three to 12 months, that’s where you want to act as quickly as possible.”
Here’s where CD rates stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate | |
| 6 months | 4.68% | No change | 1.81% | |
| 1 year | 4.89% | -0.41% | 1.85% | |
| 3 years | 4.08% | -0.73% | 1.44% | |
| 5 years | 3.94% | -1.00% | 1.43% |
*Weekly percentage increase/decrease from July 29, 2024, to Aug. 5, 2024.
Factors to consider when choosing a CD
A competitive APY is important, but there are other things you should consider when comparing CDs to get the best product for your needs:
- 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.
Methodology
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.