Best CD Rates Today – Don’t Let High APYs Pass You By, August 20, 2024

Certificates of deposit interest rates are falling, but there’s still time to lock in a great rate and maximize your returns. Today’s best CDs offer annual percentage yields, or APYs, of up to 5.30% — more than three times the national average for some terms. And by opening a CD now, you can protect your income from further declines in interest rates.

Your APY is locked in when you open a CD, so your returns will remain the same no matter where rates go next. But since rates continue to drop, the sooner you act, the more you can earn.

Today’s Best CD Rates

Below 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 is now the time to open a CD?

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 continues to cool, this cut seems even more likely. That means banks will likely continue to lower interest rates on CD terms. In other words, the sooner you lock in a high APY, the greater your earning potential can be.

How do you find the best CD for you?

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.