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Key Points
- Today’s top CDs yield up to 5.25% APY.
- CD yields are falling. Experts expect this trend to continue in the coming weeks.
- The sooner you lock in a high APY, the greater your earning potential can be.
The days of ever-rising deposit rates are over, but you still have time to score a good deposit rate and maximize your interest income.
Today’s best CDs offer up to 5.25% annual percentage yield, or APY — more than double the national average for some terms. But rates have been falling for months, and experts expect the trend to continue. By opening a high-yield CD now, you can lock in today’s APYs and protect your returns from further declines in interest rates.
Read on to find out where you can get the highest CD rates today.
Today’s Best CD Rates
Here are some of the highest CD interest rates today and how much you can earn by depositing $5,000 now:
| Term | Highest APY | Bank | Estimated profit |
| 6 months | 5.25% | Federal Community Credit Union | €129.57 |
| 1 year | 5.05% | America First Credit Union; Indiana’s first online bank | €252.50 |
| 3 years | 4.40% | MYSB Direct | €689.47 |
| 5 years | 4.24% | Indiana’s First Internet Bank | $1,153.78 |
Experts recommend comparing rates before opening a CD account to get the best possible APY. Enter your information below to get the best rate from CNET’s partners for your area.
Why is now the time to open a CD?
CD rates are significantly affected by the decisions of the Federal Reserve. The Fed regularly adjusts the federal funds rate to stabilize the economy, and since this rate determines how much it costs banks to lend and borrow money to each other, they tend to follow the Fed’s lead.
The Fed raised rates 11 times starting in March 2022 to combat skyrocketing inflation, and CD APYs skyrocketed. As inflation began to show signs of cooling, the Fed kept rates flat eight times starting in September 2023, and APYs also remained largely flat.
APYs have been fluctuating in recent months as banks anticipate a rate cut, which Fed Chairman Jerome Powell said “could be on the table at the September meeting.” After the Consumer Price Index Report showed that inflation continued to cool, this cut seemed even more likely and the latest statements from the Fed support this. As a result, we have seen more and more banks cut APYs across CD terms.
Here’s where CD rates stand compared to last week:
| Term | CNET Average APY | Weekly change* | Average FDIC rate | |
| 6 months | 4.56% | -0.44% | 1.82% | |
| 1 year | 4.66% | -0.43% | 1.85% | |
| 3 years | 3.89% | -1.77% | 1.44% | |
| 5 years | 3.77% | -1.82% | 1.42% |
*Weekly percentage increase/decrease from August 19 to August 26, 2024.
“With the latest report showing a cooling in inflation, it will finally give the Fed permission to make the rate cuts they’ve been talking about since the beginning of the year,” said Dana Menard, founder of Wealth Management Strategies in the Twin Cities“I think it makes the Fed’s September rate decision much easier to cut rates by 0.25% to 0.50%. That will also cause CD rates to come down in the coming months.”
In other words, the sooner you secure a high APY, the greater your earning potential can be.
What should you pay attention to with a CD account?
A competitive APY is important, but there are other things to consider when comparing CDs to find the best product for your needs:
- When you need your money: Early withdrawal penalties can eat into your interest earnings, so choose a term that fits your savings timeline. You can also opt for a penalty-free CD, although the APY may not be as high as a traditional CD with the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account — typically $500 to $1,000. Others don’t. How much money you need to put aside can help narrow down your options.
- Costs: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than brick-and-mortar banks. However, read the fine print for any account you evaluate.
- Federal deposit guarantee: Make sure any bank or credit union you consider is a member of the FDIC or NCUA so your money is protected if the bank goes bankrupt.
- Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that is responsive, professional and easy to work with.
Methodology
CNET rates 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, and Connexus Credit Union.
