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Key Takeaways
- Today’s top CDs offer APYs as high as 5.30%.
- Banks are increasingly cutting CD rates across terms.
- Locking in a high APY today will protect your earnings from additional rate drops.
The clock is ticking on high certificate of deposit rates. After months of gradually falling rates, we’ve seen the pace accelerate over the past week as recession fears and stock market panic have banks expecting a rate cut by the Federal Reserve in the near future.
Fortunately, a CD is a great way to protect your money from economic turmoil. The best CD rates currently top 5% annual percentage yield, or APY. And by opening a CD today, you can lock in your APY and protect your earnings from additional rate drops.
If you’re ready to maximize your returns, here’s where you can find today’s top APYs.
Today’s best CD rates
Here are some of the top rates available on today’s best CDs and how much you could earn by depositing $5,000 right now:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.30% | CommunityWide Federal Credit Union | $130.79 |
| 1 year | 5.15% | Bread Savings, CommunityWide Federal Credit Union, First Internet Bank of Indiana, Limelight Bank | $257.50 |
| 3 years | 4.55% | NexBank | $714.02 |
| 5 years | 4.35% | First Internet Bank of Indiana | $1,186.32 |
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
What affects CD rates
The Fed regularly adjusts the federal funds rate to stabilize the economy. This rate determines how much it costs banks to borrow and lend money to each other, so banks tend to follow the Fed’s lead.
When the Fed started raising rates in March 2022 to fight rampant inflation, APYs on CDs skyrocketed. As inflation began showing signs of cooling, the Fed held rates steady eight times starting in September 2023, and APYs largely held steady, too.
In recent months, APYs have wavered as banks anticipated a rate cut, which Fed Chair Jerome Powell said “could be on the table at the September meeting.” But following a dismal July labor report, some economists are calling for the Fed to make an emergency interest rate cut sooner, and we’re starting to see APY cuts accelerate
Why now’s the time to open a CD
Here’s where CD rates are compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate | |
| 6 months | 4.58% | -2.14% | 1.81% | |
| 1 year | 4.72% | -3.48% | 1.85% | |
| 3 years | 3.99% | -2.20% | 1.44% | |
| 5 years | 3.86% | -2.03% | 1.43% |
*Weekly percentage increase/decrease from Aug. 5, 2024, to Aug. 12, 2024.
The sooner you lock in a high APY, the greater your earning potential could be — especially if you’re looking for a short-term CD.
“Rate cuts in September will affect the shortest-term CD rates right away,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors. “So if you have a need to lock cash up for three to 12 months, that’s where you want to act as quickly as possible.”
In general, short-term CD rates are higher than long-term ones right now. That said, rates are dropping across terms, so any rate you get today is likely to be the best rate you’ll find for that term for a while.
“Currently, CD rates are holding up fairly well, though shorter maturities offer slightly higher yields,” said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group. “This aligns with the expectation that rates will decline over the next year and a half. The key is to match the maturity of your CDs with your potential need for funds. If stability is your priority, it might be wise to lock in a slightly lower rate for a longer period.”
How to choose the right CD for you
A competitive APY is important, but there are other things you should consider when comparing CDs to get the best product for your needs:
- When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So, be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d get with a traditional CD of the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account — typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow down your options.
- Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
- Federal deposit insurance: Make sure any bank or credit union you’re considering is an FDIC or NCUA member so your money is protected if the bank fails.
- Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that’s responsive, professional and easy to work with.
Methodology
CNET reviews 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, Connexus Credit Union.
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Source: CNET
