Key takeaways
- Today’s best CDs boast APYs as high as 5.30%.
- Your APY is locked in when you open a CD.
- With banks slashing APYs and a Fed rate cut on the horizon, now’s the time to score a high APY and protect your earnings.
The clock is ticking on high certificate of deposit rates. You can earn up to 5.30% annual percentage yield, or APY, with today’s best CDs, but rates have been slipping for weeks. And with the Federal Reserve expected to cut interest rates in September, now’s the time to snag one of these APYs while you still can.
Your APY is locked in when you open a CD, which means your returns stay the same even if overall rates drop. But the sooner you open a CD, the better — you may not find as great a rate if you delay.
Today’s best CD rates
Here are some of the highest 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% | 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.
Why you shouldn’t wait 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 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.”
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.
After this week’s Consumer Price Index report showed inflation continues to cool, this cut seems even more likely. That means banks are likely to continue dropping rates across CD terms. In other words: The sooner you lock in a high APY, the greater your earning potential could be.
What to look for in a CD
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.
