If you want to maximize your earnings with a certificate of deposit, time is of the essence. CD rates are dropping by the day, and with the Federal Reserve expected to cut the federal funds rate next week, they’re likely to only fall further.

Today’s best CDs offer up to 5.25% annual percentage yield, or APY -- more than double the national average for some terms. The longer you wait to open one, the lower your earning potential could be.

Here’s where you can score a top APY today and protect your money from additional rate drops.

Today’s best CD rates

These are some of the highest CD rates today and how much you could earn by depositing $5,000 right now:

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 you shouldn’t wait to open a CD

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. 

Beginning in March 2022, the Fed raised rates 11 times to fight rampant inflation and CD rates skyrocketed. As inflation began showing signs of cooling, the Fed held rates steady eight times starting in Sept. 2023, and APYs largely held steady.

In recent months, APYs have wavered as banks anticipated a rate cut, which the Fed has indicated could happen this month  With the latest inflation report showing inflation is on pace with expectations, this cut appears even more likely. We’ve seen banks increasingly slash APYs in recent weeks as a result.

Here’s where CD rates stand compared to last week:

If the Fed does cut rates next week as expected, CD APYs are likely to fall even further.

Which CD terms pay the most right now?

Typically, long-term CDs pay more than short-term ones because banks want to encourage you to keep your money with them for a longer period. We’re currently experiencing what’s known as an inverted yield curve, which means shorter terms are paying more. That’s because banks don’t want to lock customers into a high APY for years when rate cuts may be around the corner.

“For the time being, shorter-term CD rates will continue to beat longer-term ones because the banks do not want to get caught paying out higher rates than they can receive in the open market as they’re looking to profit from the spread,” said Dana Menard, CFP, founder and lead financial planner at Twin Cities Wealth Strategies. “It makes sense that banks are looking to reduce their risk by lowering longer-term rates until they know what the Fed will do [in] September.”

APYs are still high across terms, so if you’re in the market for a long-term CD, opening one now can still be a smart move.

“For an individual, it is a question of what is most important and their other investing options,” said Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert with BadCredit.org. “The shorter-term CD will get them a higher return, but the longer-term CD -- while a lower return than the shorter one right now -- may be higher than the same product they will buy in the future. In other words, even though the longer-term rate is lower relative to the shorter duration, the market is predicting it is still likely higher than that same one will be in the future.”

What to look for when choosing a CD

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.

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.