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Best CD Rates Today – Act Now to Lock in an APY Over 5%, May 3, 2024

With rates on the way down for months, the sooner you open a CD, the greater your earning potential could be.

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Key takeaways

  • You can earn up to 5.35% APY with today’s top CDs.
  • The Fed’s latest rate pause makes the timeline for future rate cuts uncertain.
  • Opening a CD today allows you to lock in a high rate and enjoy guaranteed earnings wherever rates go next.

Rates for certificates of deposit remain high following the Federal Reserve’s decision this week to keep the federal funds rate where it is. Noting “a lack of further progress” in reaching its inflation goals, the Fed opted to maintain the target range of 5.25% to 5.50% for the sixth consecutive time. This holding pattern means there’s still time to secure a great annual percentage yield, or APY, on a CD.

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That said, CD rates have been falling since the end of 2023. And if inflation shows stronger signs of cooling, the Fed could cut the federal funds rate later this year. The sooner you open a CD, the more you stand to earn if rates continue their downward trend.

Today’s top CDs offer APYs as high as 5.35% -- more than three times the national average for some terms. That can make a big difference in your bottom line. But with rates varying significantly from bank to bank, it’s essential to choose the right account.

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 May 3, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

CD rates have been falling for months

Certificate of deposit APYs are affected by the federal funds rate. 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 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’s sister site Bankrate:

Since July 2023, the central bank has now paused rates at its last six meetings. But with experts predicting it would begin cutting rates later this year, 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 months4.77%-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 May 3, 2024. Based on the banks we track at CNET.
*Weekly percentage increase/decrease from April 22 to April 29, 2024.

How the Fed’s latest decision could impact CD rates

Although experts had anticipated three rate cuts later this year, stubbornly high inflation may thwart 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 only see two instead of three.

The Fed stated in its press release, “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 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.”

But wherever rates go in the future, one thing is certain: Locking in today’s high rates can protect your earnings from rate cuts when they do happen.

Benefits of opening 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.

How to find the right CD for you

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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