Best CD Rates Today – APYs as High as 5.4% Won’t Last Forever, March 27, 2024

Certificates of deposit can be a great way to earn guaranteed interest on money you can afford to set aside for a specific period. Your annual percentage yield, or APY, is locked in when you open the account, so your earnings are protected against any future rate drops. And drops are likely.

CD rates have been declining for several months, and experts expect this trend will continue in the coming months. But APYs are still attractive -- top CDs currently offer up to 5.4% APY. That’s roughly three times the national average for certain terms. That means the sooner you open a CD, the more interest you stand to earn.

Read on to find out where you score the highest CD rates today.

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:

Where can we expect CD rates to go next?

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 today’s best CD rates at still well above 5%, we continue to see banks cutting APYs across terms.

Here’s where rates are compared to last week:

The latest Consumer Price Index Report showed the price of goods rose 3.2% in February -- which means we have a way to go before hitting the Fed’s target rate of 2%. The Fed’s decision to continue holding interest rates steady last week reflects this. As to when the Fed will start cutting rates, as experts have predicted it will later this year, the answer is: We’ll see.

“In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the Fed stated in its March 20 press release. “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”

“The Fed has done the heavy lifting over the past 24 months, and I do not feel that they are willing to unravel that too quickly,” said Daugs. He cites high energy and housing costs and a labor market that may not be as solid as the Fed believes.

“The Fed has a ‘goldilocks’ balancing act ahead of them here,” Daugs said. “They cannot cut too soon and cannot wait too long; it needs to be ‘just right.’ To sum it up, my expectation is two rate cuts (25 basis points each in June and July) for 2024.”

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

Benefits of opening 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 great APY. Your rate is fixed when you open a CD, so your earnings will stay the same over the entire term. But that’s not the only reason to open an account today. CDs offer attractive benefits in any rate environment.

CDs are protected by federal deposit insurance if they’re held at banks covered by the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration. That means your money is safe up to $250,000 per person, per institution 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.

What to look for in 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 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 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.