Today’s Best CD Rates: Dec. 6, 2023 -- You Can Still Find APYs of 5% or More 

If you’re looking for a safe place to keep your money, a certificate of deposit can be a great option. With a CD, you earn a fixed interest rate in exchange for keeping your funds in the account for the CD’s entire duration or term. That means you’ll earn the same amount even if rates go down after you open the account. And with terms ranging from a few months to several years, you can easily find one that fits your savings goals.

“I recommend [CDs] to learners in my financial education program,” said Bernadette Joy, a personal finance coach and CNET Financial Review Board member. “They’re a great way for beginner investors to get used to putting money away for a set period of time and can provide some reinforcement and gratification with the monthly interest payments. I personally have my money in three different CDs to take advantage of high interest rates.”

CD rates have been elevated for over a year and a half. And although some banks have started to lower annual percentage yields on some of their CD products, overall rates remain high. Top CDs currently offer APYs nearly three times greater than the national average. That makes now a great time to open a CD.

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 if you deposited $5,000 today.

CD rates hold steady -- for the most part

CD rates have steadily increased since March 2022 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 the higher it is, the higher banks raise their CD rates to attract new customers and boost their cash flow.

But with inflation showing signs of cooling, the Fed has paused rate hikes at its last two meetings. As a result, banks have mainly stopped raising their rates, and some have begun dropping them. Here’s where rates stand compared with last week:

From Nov. 27 to Dec. 4, rates remained largely unchanged, with only a 0.24% decrease in average five-year CD terms. However, this is looking at overall averages. On a more micro level, several banks lowered their CD rates recently, and experts expect rates will continue to decline over the next several months.

“The Federal Reserve has signaled that further interest increases are likely paused for the moment, so the CD rates we are seeing now are probably at a local high for some time,” said Shang Saavedra, founder and CEO of Save My Cents and CNET Financial Review Board member.

Why you should open a CD now

CD rates aren’t likely to drop dramatically in the near future, but even the gradual erosion we’ve seen lately makes a difference in your bottom line. When you open a CD, you lock in the current rate when you open the account. That means your earnings are guaranteed even if rates go down in the future. High-yield savings accounts, by comparison, have variable rates that rise and fall in response to federal funds rate changes.

“I would recommend opening a CD in today’s rate environment if you know that you won’t need the money before the term expires, so you will be able to capture all of the interest offered,” said Dana J. Menard, CFP, RLP, CEPA, CBDA, CDAA, founder and lead financial planner at Twin Cities Wealth Strategies. “The Fed has been hinting at rolling back some of the interest rate hikes over the coming months, and locking in rates now can guarantee possible higher rates in the near term for your savings.”

In addition fixed APYs, CD accounts with FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per person, per institution if the bank fails. This makes them a low-risk way to grow your savings and have peace of mind.

Factors to consider when comparing CD accounts

APY isn’t the only factor to consider when selecting a CD. You should also weigh the following:

• How soon you’ll need the funds: Most banks charge a penalty if you withdraw money before the CD matures. This can eat into your interest earnings. So be sure to choose a term that fits your savings needs.
• Minimum deposit: Some CDs require a certain amount to open an account -- typically, $500 to $1,000 -- while others have no minimum deposit requirement. This can narrow down your choices.
• Monthly fees: Fees can erode your balance. Many online banks don’t charge maintenance fees. They have lower overhead costs than banks with physical branches, and they pass these savings down to consumers through higher rates and fewer fees. Still, be sure to read the fine print for any account you’re considering.
• Federal deposit insurance: Confirm that any institution you’re considering is an FDIC or NCUA member to ensure your money is protected in the event of a bank failure.
• Customer service: Read customer reviews and ratings on sites like Trustpilot 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.