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Key Takeaways
- You can earn up to 5% APY with today’s best CDs.
- APYs have been dropping since the Fed cut rates at its September meeting.
- Opening a CD now allows you to lock in a high APY and protect your earnings from additional rate drops.
Certificate of deposit rates continue to fall following the Federal Reserve’s September rate cut, but there’s still time to score a high rate and protect your earnings from future drops.
Today’s best CDs offer annual percentage yields, or APYs, up to 5% -- more than twice the national average for some terms. And since your APY is fixed when you open a CD, you’ll be able to enjoy guaranteed returns even if overall rates continue falling, which experts expect they will. But the clock is ticking. The longer you wait to open a CD, the lower the APY you may be able to get.
Read on to see where you can find one of 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:
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 on the way down
The Fed’s decisions play a key role in where banks set CD rates. The Fed regularly adjusts the federal funds rate to keep the US economy in check. When inflation is high, it raises this rate to discourage borrowing, lower consumer spending and drive 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 typically raise APYs on consumer products like CDs and savings accounts to attract new customers and boost their cash flow. When it raises this rate, banks lower their APYs, too.
Starting in March 2022, the central bank raised the federal funds rate 11 times to fight record inflation, and CD rates skyrocketed -- reaching as high as 5.65% APY for the top CDs we track at CNET. As inflation showed signs of cooling, the Fed held rates steady eight times in a row starting in September 2023, and APYs largely held steady, too.
As inflation continued to cool and banks anticipated a Fed rate cut, they started dropping APYs across terms. APYs fell slowly at first, but the pace has picked up since the Fed’s rate cut on Sept. 18.
Here’s where CD rates stand 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 | 4.37% | 4.39% | +0.46% |
| 1 year | 4.30% | 4.22% | -1.86% |
| 3 years | 3.66% | 3.61% | -1.37% |
| 5 years | 3.55% | 3.51% | -1.13% |
*Weekly percentage increase/decrease from Sept. 30, 2024, to Oct. 7, 2024.
Experts predict two more rate cuts before the year is out, which means APYs are likely to keep falling. So, now’s the time to open a CD and lock in a high rate before APYs fall further.
“I expect interest rates to drift lower through 2025,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors. He advises that “acting sooner is better. Don’t get cute with timing. Timing is guessing, and if you’re waiting for a blip higher amidst a trend lower, then you’re fighting a losing battle.”
Consider these things when comparing CDs
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.