Best CD Rates Today, September 23, 2024: APYs Falling Fast. Here’s Where You Can Still Score a Great One

If you’ve been thinking about opening a certificate of deposit, now’s the time to do it. After years of sky-high CD rates, annual percentage yields on CDs have been falling for months, and the Federal Reserve’s rate cut last week sent them tumbling.

You can still find APYs as low as 5.10% with today’s best CDs, but the clock is ticking. The sooner you open a CD, the better the interest rate you’re likely to lock in and the greater your earning potential can be.

Read on to find out where you can score the best APYs 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 Shouldn’t Wait to Open a CD

The Fed doesn’t directly set CD rates, but its decisions play a major role in where banks and credit unions set them. The Fed regularly adjusts the federal funds rate — which determines how much it costs banks to lend and borrow money to each other — to keep the U.S. economy in check.

When inflation is high, the Fed raises this rate to discourage borrowing, reduce consumer spending, and drive down prices. In response, banks typically raise APYs on consumer products like CDs and savings accounts to increase cash flow and remain competitive.

Starting in March 2022, the central bank raised the federal funds rate 11 times to combat skyrocketing inflation, and CD rates skyrocketed — as high as 5.65% APY for the best CDs we track at CNET. As inflation began to cool, the Fed held rates steady eight times as of September 2023, and APYs also remained largely stable.

As inflation continued to cool and banks expected a Fed rate cut, they began cutting APYs across maturities — slowly at first, and more rapidly in recent weeks. The Fed’s rate cut last week only accelerated this decline.

Here’s where CD rates stood at the beginning of this week compared to the beginning of last week:

Experts predict that the Fed will cut interest rates again at its November and December meetings, so CD rates are likely to fall further.

“The market is aggressively pricing in lower interest rates toward the end of the year,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors. “They could be down 1% in a few months. If CDs are the right option for you, timing is critical because the path for rates is almost certainly lower.”

How to choose the best CD for you?

When comparing your CD options, a competitive APY is important. But it’s not the only thing you should consider. To find the right account for you, you should also consider these things:

• When you need your money: Early withdrawal penalties can eat into your interest earnings, so make sure you 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.

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.