- You can earn up to 4.75% APY with today's top CDs.
- APYs have fallen since the Fed cut rates in September and November but remain high.
- Locking in an APY now will protect your earnings if the Fed cuts rates again in December.
There's still time to maximize your earning potential with a high-yield certificate of deposit. Don't wait too long.
Today's best CDs still offer annual percentage yields up to 4.75%. That's more than twice the national average for some terms. APYs have been dropping since the Federal Reserve cut interest rates at its last two meetings. Although a December rate cut is not certain, locking in a high APY today can protect your savings from further rate drops.
Here are some of the highest CD rates today and how much you could earn by depositing $5,000 right now:
Today's best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.75% | CommunityWide Federal Credit Union | $117.37 |
| 1 year | 4.50% | CommunityWide Federal Credit Union | $225.00 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
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 are CD rates falling?
The Fed's actions play a big part in where banks set their CD rates. The federal funds rate determines how much it costs banks to borrow and lend money to each other. When the Fed raises this rate, banks tend to raise their APYs on consumer products like CDs and savings accounts to attract new customers and boost their cash reserves. When it cuts this rate, banks tend to cut their APYs.
CD rates skyrocketed in recent years as the Fed raised the federal funds rate 11 times starting in March 2022 to combat record inflation. At one point, APYs for the CDs we track at CNET reached 5.65%.
As inflation showed signs of cooling, the Fed began pausing rates starting in September 2023. CD rates plateaued and then began to dip slightly as banks anticipated a rate cut later this year. When this rate cut materialized in September, APYs began falling faster -- a trend that continued after the Fed cut rates again in November.
After the Fed's November meeting, many experts expected a third cut in December. But with the latest Consumer Price Index report showing that inflation rose by 2.6% in October, the Fed may elect to pause rates at its next meeting.
"The general consensus is that there will likely be either a small cut or possibly even a pause at [the Fed's] next meeting in December because of continued concerns about inflation as well as a sense that the economy is not as weak as many had believed based on earlier data," said Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert with BadCredit.org
This is good news for savers. Some banks have continued to trim rates over the past week, and a number have also raised rates across CD terms. We may continue to see adjustments in either direction as banks try to anticipate the Fed's next move, but until a rate cut is certain, expect savings rates to remain elevated. That means you still have time to lock in a great APY and protect your earnings from rate cuts when they do happen.
Here's where CD rates stand at the start of this week compared to the start of last week:
How CD rates have changed in the last week
| Term | Last week's CNET average APY | This week's CNET average APY** | Weekly change*** |
|---|---|---|---|
| 6 months | 4.21% | 4.18% | -0.71% |
| 1 year | 4.09% | 4.11% | +0.49% |
| 3 years | 3.55% | 3.55% | No change |
| 5 years | 3.48% | 3.49% | +0.29% |
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.
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.
*APYs as of Nov. 25, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**This week's APY as of Nov. 25, 2024, based on the banks we track at CNET.
***Weekly percentage increase/decrease from Nov. 18, 2024, to Nov. 25, 2024.