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Key Takeaways
- Today’s best CDs offer APYs as high as 5.10%.
- APYs are falling fast after the Fed’s first rate cut in years this week.
- The longer you wait to lock in a top APY, the more interest you could lose out on.
The Federal Reserve’s first rate cut in years was great news for many people this week. It’s a signal that the Fed is pleased with where the economy is heading, and it means borrowers could see APRs on things like credit cards and mortgages fall in the coming months. But for savers, the news isn’t as rosy.
We’re already seeing annual percentage yields, or APYs, plummet across CD terms following the Fed’s decision on Wednesday. Fortunately, you can still find APYs as high as 5.10% with today’s best CDs. And by opening a CD now, you can lock in the current APY and protect your earnings from additional rate cuts. But the clock is ticking.
So, read on to learn where you can find today’s best APYs -- ASAP.
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 should open a CD today
The Fed regularly adjusts the federal funds rate to stabilize the US economy. When inflation is high, the Fed raises this rate to discourage borrowing, decrease consumer spending and drive prices down. This rate affects how much it costs banks to borrow and lend money to each other, so when the Fed raises it, banks tend to hike up APYs on consumer products like CDs and savings accounts.
The central bank raised the federal funds rate 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. But as inflation continued to cool and banks began to anticipate a Fed rate cut, they started dropping APYs across terms -- slowly at first, then faster in recent weeks.
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.
“A Federal Reserve interest rate cut will likely mean lower interest rates for CDs going forward,” said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group. “While it is not always a one-to-one reduction based on what the Federal Reserve does, we have already seen -- and will most likely continue to see -- interest rates on CDs go down.”
In other words: The sooner you open a CD, the higher the APY you’re likely to score.
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 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.