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Key Points
- The Fed cut rates after keeping them unchanged at eight consecutive meetings.
- Banks could follow suit and lower interest rates on savings accounts for all maturities.
- If you wait to open a CD, you may receive less interest on your savings.
- Interest rates on short-term CDs can be as high as 5.10% APY.
There is still time to lock in the certificate of deposit rate at 5.10% for six months, but time is running out. The Federal Reserve cut the federal funds rate yesterday for the first time since 2020. Historically, we have seen that CD rates generally move in the same direction whether the Fed raises or lowers rates. Banks could start cutting rates in the coming weeks or even days. Some have already done so.
Today’s best CDs offer annual percentage yields as high as 5.10% – more than double the national average for some CD terms. APYs have seen small declines in recent weeks and are expected to fall further now that the Fed has made its decision.
We recommend you don’t wait until the next Fed meeting in November to invest in a CD. Here are today’s best APYs.
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:
| Term | Highest APY | Bank | Estimated profit |
| 6 months | 5.10% | Quontically | €125.91 |
| 1 year | 5.00% | Federal Community Credit Union | $250.00 |
| 3 years | 4.16% | MYSB Direct | $650.32 |
| 5 years | 4.10% | BMO Alto | $1,112.57 |
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.
CD rates are already falling
The Fed regularly adjusts the federal funds rate to stabilize the U.S. 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 this 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 rates, banks typically raise the APYs on consumer products like CDs and savings accounts.
Prior to the Fed meeting, some banks were already cutting short-term and long-term CD rates in anticipation of the Fed’s rate cut. For example, Forbright Bank cut all of its one-, three-, and five-year terms. Even though the Fed does not set CD rates directly, its actions have a domino effect.
The Fed’s rate cut comes after the central bank raised rates 11 times since March 2022 to combat skyrocketing inflation, and CD yields soared. As inflation began to cool, the Fed kept rates flat eight times starting in September 2023, and APYs also remained largely flat.
Here’s where CD rates stood at the beginning of this week compared to the beginning of last week:
| Term | Average APY from CNET last week | CNET’s Average APY This Week | Weekly change* |
| 6 months | 4.57% | 4.51% | -1.31% |
| 1 year | 4.62% | 4.56% | -1.30% |
| 3 years | 3.86% | 3.82% | -1.03% |
| 5 years | 3.75% | 3.71% | -1.07% |
*Weekly percentage increase/decrease from September 9, 2024 to September 16, 2024.
“I think CD rates have been pricing in the possibility of a rate cut for some time now,” said Noah Damsky, CFA, director of Marina Wealth AdvisorsThe rate cut could validate the trajectory and likely result in further declines in CD rates in the future, pending more cuts, Damsky told CNET weeks ahead of the Fed’s decision.
In other words, the sooner you open a CD, the higher your APY is likely to be.
What to look for when opening a CD
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 choose a term that fits your savings timeline. You can also opt for a no-penalty 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.
- Fees: Maintenance and other costs 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 Insurance: 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.
