Best CD Rates Today – The Clock Is Ticking on APYs up to 5.4% , March 18, 2024

CD rates may not be what they were in the sky-high days of 2022 and 2023, but they’re still attractive. Top CDs currently boast annual percentage yields, or APYs, more than three times the national average for some terms. And since your rate is locked in when you open a CD, opening an account now helps you enjoy a high APY even if rates fall in the future.

And experts expect they will fall. APYs have been on the way down across CD terms for months, and they’re likely to continue falling as banks monitor the Federal Reserve for signs of possible rate cuts. How will the Fed’s meeting this week impact rates, and what can you do to ensure you get the best APY on a CD? Read on to find out.

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 highest CD rates available right now and how much you could earn by depositing $5,000 right now:

What the Fed’s next meeting means for CD rates

Savers have enjoyed high CD rates since early 2022 when the Fed began raising the federal funds rate to fight rampant inflation. From March 2022 to June 2023, the Fed regularly increased this rate, which affects how much it costs banks to borrow money from -- and lend money to -- each other. As a result, when the federal funds rate goes up, banks usually raise their rates on consumer products like savings accounts and CDs to attract new customers and boost their cash flow. At one point, APYs on the best CDs topped 5.6%.

Since July 2023, the Fed has opted to pause rate hikes while it monitors signs that inflation has started to cool. In response, CD rates stopped climbing and, by the fourth quarter of 2023, began moving downward. While the highest CD rates today are still well above 5%, we continue to see banks cutting APYs across terms.

Here’s where rates are compared to last week:

Experts have predicted for months that the Fed will begin cutting rates in mid-to-late 2024. But last week’s Consumer Price Index Report showed the price of goods rose 3.2% in February. That means inflation isn’t cooling as quickly as the Fed would like -- and it’s still far from the Fed’s target rate of 2%. As a result, many experts now expect the Fed will announce another rate hike pause at its upcoming Open Market Committee meeting on March 19-20.

That means you still have time to lock in a great APY and safeguard your earnings against rate cuts when they begin.

Benefits of opening a CD today (a high APY isn’t the only one)

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.

How to choose the best CD for you

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.