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Best CD Rates Today -- Should You Lock in a High CD APY Before the Fed Meeting? April 29, 2024

A CD can be a smart investment in any rate environment, but especially in an uncertain one.

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Key takeaways

  • Top CDs offer APYs up to 5.35%.
  • Your APY is locked in when you open a CD, protecting your earnings from future rate drops.
  • The Federal Reserve’s meeting later this week will impact where rates head in the coming months.

Certificate of deposit rates may not be at the sky-high levels they hit over the past two years, but they’re still attractive. Today’s top CDs offer annual percentage yields, or APYs, up to 5.35%. And since your rate is locked in when you open a CD, your return stays the same even if rates dip down.

Metallic Piggy Bank Illuminated By Pink And Blue Lights In The Midst Of Question Marks On Blue And Pink Background
MicroStockHub/Getty Images

“Unlike some other investments whose returns fluctuate with market conditions, CDs offer fixed interest rates for a specified period. It’s a predictable stream of income, which can be particularly appealing in uncertain economic environments,” said Bernadette Joy, a personal finance coach and CNET Financial Review Board member.

But high rates won’t stick around forever. By opening a CD today, you can lock in a great APY and protect your savings from potential rate drops.

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:

TermHighest APYBankEstimated earnings
6 months5.35%Rising Bank$132.01
1 year5.35%NexBank$267.50
3 years4.66%First Internet Bank of Indiana$732.08
5 years4.55%First Internet Bank of Indiana; First National Bank of America$1,245.83
APYs as of April 29, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

How does the Fed impact CD rates?

The federal funds rate impacts certificate of deposit APYs. This rate determines how much it costs banks to borrow and lend money to each other. So, when the Federal Reserve raises this rate, banks tend to follow suit, raising their rates on consumer products like savings accounts and CDs to attract new customers -- and their cash.

Starting in March 2022, the Fed steadily raised the federal funds rate to combat record-high inflation, and CD rates skyrocketed in response. Here’s how average CD rates moved from 2010 to 2023, according to CNET sister site Bankrate:

Since July 2023, the central bank has paused rates at its last five meetings. But experts have predicted it will begin cutting rates later this year. As a result, CD rates have been steadily declining since the end of 2023. Here’s where they stand compared to last week:

TermCNET average APYWeekly change*Average FDIC rate
6 months4.75%-0.42%1.57%
1 year4.97%No change1.81%
3 years4.12%+0.24%1.41%
5 years3.94%No change1.39%
APYs as of April 29, 2024. Based on the banks we track at CNET.
*Weekly percentage increase/decrease from April 22, 2024, to April 29, 2024.

Here’s what this week’s Fed meeting means for CD and savings rates

The Fed is expected to hold rates steady at its April 30 and May 1 meeting. Although experts were predicting three rate cuts later this year, higher-than-expected inflation may be thwarting these expectations. Some experts now say rate hikes are more likely than rate cuts this year. Others are more hopeful and think rate cuts are still possible this year, but we may see only two instead of three. 

Regardless of the Fed’s decision, CD rates are expected to remain high for now. If you’ve been eyeing a CD, locking in a high APY soon can safeguard your earnings from rate cuts when they do happen.

Top reasons to open a CD today

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.

Factors to consider when choosing a CD

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.


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.

Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
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