Best CD Rates Today, September 4, 2024: Don’t Let High APYs Pass You By

Want to maximize your earnings with a certificate of deposit? Now is the time to take action.

The best CDs currently offer annual percentage yields, or APYs, as high as 5.25%, but rates are dropping daily. So the sooner you open a CD, the higher the rate you can get. Your APY stays the same for the entire life of the CD, protecting your income from further declines — which are likely given the Federal Reserve’s expectation that rates will be cut later this month.

Read on to find out where you can score the best CD interest 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:

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 You Should Open a CD Today

The Fed regularly adjusts the federal funds rate to stabilize the economy. When inflation is high — and it has been for years — the Fed raises the rate to discourage borrowing and reduce consumer spending in the hopes that will lower prices. The federal funds rate determines how much it costs banks to lend and borrow money to each other, so when the Fed raises the rate, banks typically raise the APYs on consumer products like CDs and savings accounts.

Starting in March 2022, the Fed raised rates 11 times to combat skyrocketing inflation, and CD yields skyrocketed. As inflation began to show signs of cooling, the Fed held rates steady eight times starting in September 2023, and APYs also remained largely flat.

Over the past few months, APYs have been fluctuating as banks anticipate a rate cut, which the Fed has indicated could happen this month. And with the latest inflation report showing inflation tracking in line with expectations, that cut seems even more likely. We’ve seen banks cut APYs more and more frequently in recent weeks as a result.

Here’s where CD rates stand compared to last week:

“Most economists expect the Fed to cut the federal funds rate, and the question at this point seems to be by how much,” said Bobbi Rebell, a certified financial planner and personal finance expert at BadCredit.org“CD rates don’t always exactly match Fed rate cuts, but the lower rates go, the more likely CD rates are to go down.”

In other words, the sooner you secure a high APY, the greater your earning potential can be.

What should you pay attention to when buying a CD?

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.