Key takeaways
- Top-earning CDs currently offer APYs as high as 5.35%.
- Your rate is fixed when you open a CD.
- With rates on the way down, now’s the time to lock in a high APY and protect your earning potential.
Despite months of gradual declines, certificate of deposit rates remain attractive. Today’s top CDs offer up to 5.35% annual percentage yield, or APY -- more than three times the national average for some terms. But these rates won’t stick around forever.
“The Federal Reserve is expected to begin cutting rates sometime in 2024 and into 2025,” said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group. “By purchasing CDs today, you lock in these higher rates for the CD term without concern that that rate will go down until it is up for renewal.”
Your APY is fixed when you open a CD, which means your earnings are protected from any future rate drops. And with further drops likely, the sooner you open an account, the more interest you stand to earn.
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.
Today’s best CD rates
Here are some of the top CD rates available right now and how much you could earn by depositing $5,000 right now:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.31% | Rising Bank | $131.03 |
| 1 year | 5.35% | NexBank | $267.50 |
| 3 years | 4.66% | First Internet Bank of Indiana | $732.08 |
| 5 years | 4.55% | First Internet Bank of Indiana; First National Bank of America | $1,245.83 |
Why CD rates are falling
CD rates are influenced by the federal funds rate, which determines how much it costs banks to borrow and lend money to each other. The Federal Reserve regularly adjusts this rate to stimulate the economy and keep inflation in check. When the federal funds rate goes up, banks tend to raise their rates on consumer products like savings accounts and CDs to boost their cash reserves.
From March 2022 to July 2023, the Fed raised the federal funds rate to combat rampant inflation -- and CD rates followed suit. But the central bank has paused rates at its last five meetings, and experts expect it will begin cutting rates later this year. As a result, CD rates have been steadily declining.
CD rates may fluctuate for other reasons as well. For example, banks might boost rates to remain competitive and attract new customers.
Here’s where rates stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate |
| 6 months | 4.78% | -1.64% | 1.52% |
| 1 year | 4.97% | No change | 1.81% |
| 3 years | 4.07% | No change | 1.38% |
| 5 years | 3.94% | -0.25% | 1.38% |
*Weekly percentage increase/decrease from April 1, 2024, to April 8, 2024.
With APYs on the downward trend, the sooner you open an account, the higher the rate you can lock in -- and the more interest you’ll earn.
Top reasons to open a CD now
With rates as high as they’re expected to go, now’s the time to open a CD and lock in a high APY. But that’s not the only reason to open an account today. CDs offer attractive benefits in any rate environment.
CDs are insured up to $250,000 per person, per bank, as long as the bank is insured by the Federal Deposit Insurance Corporation. Credit unions offer the same protection through the National Credit Union Administration. That means your money is safe up to the deposit limits if the bank fails.
Plus, unlike investments such as stocks, CDs are low-risk. You won’t lose your principal deposit unless you run into early withdrawal penalties, which you can easily avoid by choosing the right term.
Compare these things when choosing a CD account
In addition to a competitive APY, here’s what you should consider when comparing CD accounts:
- How soon you’ll need your money: Early withdrawal penalties can chip away at your interest earnings. So, be sure to choose a term that fits your savings timeline. You should be comfortable leaving your money untouched for the entire term.
- Minimum deposit requirement: Some CDs require a certain 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 the right account for you.
- Fees: Fees can eat into your earnings. Many online banks don’t charge maintenance 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 institution you’re considering is an FDIC or NCUA member so your money is protected if the bank fails.
- Customer ratings and reviews: Check out sites like Trustpilot to see what customers are saying about any bank you’re considering. You want to know that the bank is 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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