If you want to earn interest on your savings and you can afford to set some money aside for a specific period, a certificate of deposit is worth considering. CD rates are often as high -- if not higher -- than high-yield savings account rates. But unlike savings accounts, which have variable rates, your CD rate is locked in when you open the account. And with rates expected to drop later this year, securing a great rate now can protect your earnings.
However, choosing the right account can make a big difference in how much you earn.
“Annual percentage yield (APY) can vary dramatically, both between institutions and across options,” said Jesse Carlucci, chief investment officer at Arrow Investment Management LLC.
Right now you can find CDs offering APYs up to 5.5% -- if you know where to look. Read on to see what you can earn with today’s top CDs.
Key takeaways
- Top CDs currently offer APYs as high as 5.5%.
- With rates expected to fall in the coming months, now is the time to lock in a high APY.
- Short-term CD rates currently beat long-term CD rates.
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 | 5.50% | BMO Alto; CommunityWide Federal Credit Union | $135.66 |
| 1 year | 5.40% | Alliant Credit Union; Bask Bank | $270.00 |
| 3 years | 4.75% | First Internet Bank of Indiana | $746.88 |
| 5 years | 4.60% | BMO Alto | $1,260.78 |
How the Fed impacts CD rates
CD rates are affected by the federal funds rate, which determines how much it costs banks to borrow and lend money to each other. When the Federal Reserve increases this rate, banks tend to follow suit, raising interest rates on consumer products such as credit cards, savings accounts and CDs to attract new customers.
Starting in March 2022, the Fed regularly raised the federal funds rate to combat inflation, and CD rates skyrocketed in response. But with inflation beginning to cool, the Fed paused rate hikes at its last four meetings. As a result, CD rates plateaued at the end of 2023, and banks have been cutting rates across CD terms over the past few months.
Here’s where APYs stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate |
| 6 months | 4.91% | -0.40% | 1.51% |
| 1 year | 5.06% | -0.39% | 1.86% |
| 3 years | 4.14% | -0.71% | 1.40% |
| 5 years | 3.95% | -0.50% | 1.41% |
*Weekly percentage increase/decrease from Jan. 29, 2024, to Feb. 5, 2024.
Typically, long-term CD rates outperform short-term ones because banks want to encourage customers to keep their money with them longer. But with the Fed expected to cut rates later this year, banks may be hesitant to lock customers into a high APY for an extended period. Currently, short-term CDs -- those with terms of one year or less -- offer higher rates than long-term ones.
“I personally have been putting money into CDs between nine and 12 months as those have had the highest rates and allow me the flexibility to re-evaluate my cash holdings in a year or so,” said Bernadette Joy, a personal finance coach and CNET Financial Review Board member.
Why you shouldn’t wait to open a CD
A fixed APY isn’t the only perk of opening a CD today. CDs offer attractive benefits 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. This can eat away at your earnings and discourage you from tapping into your funds before you need them.
What to look for in a CD account
In addition to a competitive APY, here’s what you should look for when comparing CD accounts:
- How soon you’ll need the funds: Early withdrawal penalties can chip away at your interest earnings. So be sure to choose a term that fits your savings timeline.
- Minimum deposit requirement: Some CDs require a certain amount to open an account -- typically, $500 to $1,000. Others have no minimum deposit 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. 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 ratings and reviews: Read what customers say about the bank you’re considering 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.
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