Table of Contents
Key Points
- Today’s best CDs can earn you up to 5.25% APY.
- Interest rates have been falling for months, but in recent weeks we have seen an increase in APY reductions.
- With the Fed expected to cut rates in September, now is the time to lock in a high APY and protect your income from further declines.
The clock is ticking on high certificates of deposit. You can still score an annual percentage yield, or APY, of up to 5.25% with today’s best CDs, but APYs have been falling for months. And with a Federal Reserve rate cut likely on the horizon, they’re falling even faster these days.
Your APY is locked in when you open a CD, so your returns will stay the same even if overall rates fall. That means now is the time to jump on high APYs while they last. The longer you wait, the lower the interest rate you can lock in — and the lower your earning potential will be.
Here you can get one of the highest CD interest rates 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:
| 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 Banks Are Lowering CD Rates
CD rates are significantly affected by the Fed’s decisions. 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 have 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 to look for when comparing CD accounts
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.
