Key takeaways
6-month and 1-year CDs are offering up to 5.50% APY
3-year and 5-year CDs are offering 4.65% APYs and higher
Experts recommend locking in a CD soon, before rates start to fall
With a certificate of deposit, you can lock in a fixed interest rate on your savings by agreeing to keep your money in the account for a set period. CD rates remain high, but banks have begun lowering them over the past couple of months.
“We’ve experienced a volatile rate environment lately, with rates on savings and CDs fluctuating by the day,” said Steve Goodman, managing director of consumer banking at JPMorgan Chase.
You can still find annual percentage yields, or APYs up to 5.5% depending on the CD term, but most experts believe CD rates are as good as they’re going to get. So, if you’ve been considering opening a CD, you may want to act now while you can still secure a high APY.
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 currently available and how much you could earn if you deposited $5,000 right now:
| Term | Highest APY* | Bank | Estimated earnings |
| 6 months | 5.50% | BMO Alto; CommunityWide Federal Credit Union | $135.66 |
| 1 year | 5.50% | BMO Alto; Bread Savings; CommunityWide Federal Credit Union; Limelight Bank | $275.00 |
| 3 years | 4.75% | First Internet Bank of Indiana | $746.88 |
| 5 years | 4.60% | BMO Alto | $1,260.78 |
CD rates won’t remain this high all year
CD rates rose steadily over the past two years in response to the Federal Reserve regularly raising the federal funds rate. When the Fed raises the federal funds rate, banks often follow suit, raising interest rates on consumer products like credit cards, savings accounts and CDs.
The end of 2023 saw three consecutive rate hike pauses from the Fed, and CD rates plateaued as a result.
That means banks likely won’t push rates much higher. And some banks are even starting to quietly lower rates. Here’s where APYs stand compared to last week:
| Term | CNET average APY* | Weekly change** | Average FDIC rate |
| 6 months | 4.90% | -0.40% | 1.49% |
| 1 year | 5.15% | -0.57% | 1.86% |
| 3 years | 4.24% | 0.47% | 1.41% |
| 5 years | 4.02% | 0.49% | 1.40% |
**Percentage increase/decrease from Jan. 8, 2024, to Jan. 17, 2024.
From week to week, the change in average rates hasn’t been dramatic. But if you look at where rates are today compared to last month, you’ll see that earning potential has decreased more markedly.
| Term | Highest APY on Dec. 4, 2023 | Highest APY on Jan. 3, 2024 | Monthly change |
| 6 months | 5.55% | 5.50% | -0.90% |
| 1 year | 5.75% | 5.55% | -3.48% |
| 3 years | 5.10% | 4.85% | -4.90% |
| 5 years | 5.25% | 4.75% | -9.52% |
Experts expect the Fed to begin lowering rates in mid to late 2024, which means CD rates will fall further. Since CD rates are fixed when you open the account, opening a CD today ensures you’ll enjoy the same high earnings even when rates drop.
“In terms of when is the right time to open a CD, there’s no right or wrong answer or exact moment – a CD allows you to lock in a fixed rate of return for the duration of the CD, protecting you if interest rates decline,” Goodman said.
Why a CD is worth considering
A fixed rate of return (especially if rates are falling) isn’t the only perk of opening a CD now. 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 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 a fee if you withdraw money before the CD matures. This can eat away at your earnings and give you pause if you’re thinking of tapping your funds before you need them.
Factors to consider before opening a CD
In addition to a competitive APY, you should also keep these factors in mind before opening a CD in any rate environment:
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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