Best CD Rates Today – APYs Dropping Fast, August 23, 2024

Current interest rates on certificates of deposit are the highest you’ll see in a long time. The best CDs currently offer a 5.25% annual percentage yield, or APY, but banks have been cutting rates in recent weeks. And with inflation slowing and a Federal Reserve rate cut on the table, that trend is likely to continue.

When you open a CD, your rate is fixed, so you’ll earn the same return no matter where rates go afterward. But since APYs fall quickly, the longer you wait to do this, the lower the rate you can get — and the lower your earning potential can be.

Here you can score one of the highest CD interest rates available today.

Today’s Best CD Rates

Here are some of the highest rates currently available on the best CDs 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 CD Rates Spiked

The Fed regularly adjusts the federal funds rate to stabilize the economy. This rate determines how much it costs banks to lend and borrow money to each other, so banks usually follow the Fed.

When the Fed began raising rates in March 2022 to combat skyrocketing inflation, CD APYs 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.

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.”

Below is a comparison of CD rates with last week:

After this week Consumer Price Index Report showed that inflation will continue to cool, this cut seems even more likely, and we have seen more and more banks lowering APYs across CD terms. So the earlier you lock in 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.