Add Category
Wong Yu Liang / Getty Images
Key Takeaways
- The Fed lowered rates after holding them steady for eight straight meetings.
- Banks could follow suit by lowering CD rates for all term lengths.
- Waiting to open a CD could mean you won’t earn as much interest on your savings.
- Short-term CDs have rates as high as 5.10% APY.
There’s still time to lock in certificate of deposit rates as high as 5.10% for six months, but time is winding down. The Federal Reserve cut the federal funds rate yesterday for the first time since 2020. Historically, we’ve seen CD rates generally move in the same direction whether the Fed raises or lowers interest rates. Banks could start lowering rates in the coming weeks or even days. Some already have.
Today’s best CDs offer annual percentage yields as high as 5.10% -- more than double the national average for some CD terms. APYs have seen small dips over previous weeks and are expected to fall further now that the Fed has made its decision.
We don’t recommend waiting until the Fed’s next meeting in November before investing in a CD. Here’s where you can find today’s best APYs.
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:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.10% | Quontic | $125.91 |
| 1 year | 5.00% | CommunityWide Federal Credit Union | $250.00 |
| 3 years | 4.16% | MYSB Direct | $650.32 |
| 5 years | 4.10% | BMO Alto | $1,112.57 |
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.
CD rates are already falling
The Fed regularly adjusts the federal funds rate to stabilize the U.S. 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 it 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 rates, banks tend to raise APYs on consumer products like CDs and savings accounts.
Ahead of the Fed meeting, some banks were already lowering CD rates for short and long term CDs, in anticipation of the Fed’s rate cut. For example, Forbright Bank already lowered its one-, three- and five-year terms. Even though the Fed doesn’t directly set CD rates, its actions have ripple effects.
The Fed’s rate cut comes after the central bank raised rates 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.
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.
“I think CD rates have been pricing in the potential for a rate cut for some time,” said Noah Damsky, CFA, principal of Marina Wealth Advisors. The rate cut could validate the trajectory and likely result in further declines in CD rates going forward in anticipation of more cuts, Damsky told CNET weeks leading up to the Fed’s decision.
In other words: The sooner you open a CD, the higher the APY you’re likely to score.
Things to keep in mind when opening 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.