CD rates may have fallen in recent months, but they’re still attractive -- more than three times the national average for certain terms. If you’re looking for a safe place to stash your cash and earn some extra interest, today’s top CDs can be a smart investment.
You can snag an annual percentage yield, or APY, up to 5.4% if you know where to look. And, with rates expected to continue falling in the coming months, the sooner you open a CD, the higher the rate you can lock in. Your APY is set when you open the account, so your earnings are protected against any future rate drops.
Read on to learn where you can score a great rate today.
Key takeaways
- You can earn up to 5.4% with today’s top CDs.
- With Fed rate cuts anticipated for later this year, experts expect APYs will continue falling on CDs.
- By opening a CD now, you can secure a still-high rate for the duration of the CD’s term.
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 | 5.30% | America First Credit Union; Barclays; CommunityWide Federal Credit Union | $130.79 |
| 1 year | 5.40% | Alliant Credit Union; CFG Bank | $270.00 |
| 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 |
Today’s high CD rates may be the best you’ll get all year
High APYs have been the headline for CDs for two years now as the Federal Reserve regularly raised the federal funds rate to combat inflation. This rate determines how much it costs banks to borrow and lend money to each other, so when the Fed raises this rate, banks tend to follow suit, raising rates on consumer products from credit cards to CDs.
Due to the regular rate hikes, CD rates skyrocketed starting in March 2022, with peak APYs topping 5.6%. But the last time the Fed raised rates was in July 2023, and its last four meetings have resulted in rate hike pauses. As a result, we’ve seen CD rates fall since the end of 2023.
Here’s where rates stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate |
| 6 months | 4.86% | -0.61% | 1.53% |
| 1 year | 5.03% | -0.20% | 1.83% |
| 3 years | 4.08% | No change | 1.40% |
| 5 years | 3.95% | No change | 1.40% |
*Weekly percentage increase/decrease from March 4, 2024, to March 11, 2024.
As inflation slowly begins to cool, experts expect the Fed will begin cutting rates in mid-to-late 2024, so CD rates will likely continue falling in the coming months. However, top accounts still offer APYs more than three times the national average for some terms. So, by opening a CD now, you can lock in today’s still-high rates and protect your earnings from further rate drops.
Why you should open a CD now
With rates as high as they’re expected to go, now is the time to lock in an APY before they drop further. But a fixed APY isn’t the only benefit of opening a CD today. CDs offer attractive perks in any rate environment.
CDs held at banks covered by the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration are protected by federal deposit insurance. That means your money is safe up to $250,000 per person, per institution if the bank fails. This makes them a low-risk way to grow your savings.
Plus, most banks charge an early withdrawal penalty if you take out money before the CD matures. If you’re worried you’ll be tempted to tap into your funds before you need them, this penalty could inspire you to stay disciplined.
Comparing CD accounts: What to look for
In addition to a competitive APY, here’s what you should consider when comparing CD accounts:
- When you’ll need the funds: Early withdrawal penalties can eat 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 have no such requirement. How much money you have to put away can help you narrow down your account options.
- Fees: Fees can erode your balance. 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: Check that any institution you’re considering is an FDIC or NCUA member to ensure 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 make sure 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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