We’re still seeing high interest rates for certificates of deposit this week, with some of the best CDs offering annual percentage yields, or APYs, of 5.5% or more. But the end of record-high rates may be in sight.
That could be bad news if you have all of your savings in a high-yield savings account. Since savings account rates are variable, you’ll earn less if rates drop. CD rates, however, are fixed, so if you open one now while rates are up, you’ll enjoy the same high earnings even if rates fall.
“CDs can help individuals lock in interest rates for a period of time, which can be a good idea, especially if interest rates on savings are trending downward,” said Bola Sokunbi, founder of Clever Girl Finance and CNET Financial Review Board member.
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 best CD rates available right now and how much you could earn if you deposited $5,000 today.
|Term||Highest APY*||Bank||Estimated earnings|
|6 months||5.55%||Bask Bank||$136.88|
|1 year||5.65%||BMO Alto; Forbright||$290.00|
|3 years||5.10%||BMO Alto||$804.68|
|5 years||5.25%||BMO Alto||$1,457.74|
Have we seen the peak of high CD rates?
Savers have enjoyed high CD rates for over a year and a half as a result of the Federal Reserve’s ongoing rate hikes. Since March 2022, the Fed has regularly raised the federal funds rate to fight inflation. This rate determines how much it costs banks to borrow and lend money. When the federal funds rate goes up, banks tend to raise their savings and CD rates to attract more customers and increase their cash reserves.
And while the Fed opted to pause rate hikes at its last two meetings, CD rates continue to hold high. Here’s a look at how they’ve moved since last week:
|Term||CNET Average APY*||Weekly Change**||Average FDIC rate|
|1 year||5.27%||No change||1.79%|
**Percentage increase/decrease from Nov. 6, 2023, to Nov. 13, 2023.
In general, APYs increased slightly from Nov. 6 to Nov. 13, with average six-month CD rates up by 0.20% and average long-term CD rates up 0.23% for three-year terms and 0.49% for five-year terms.
However, many experts predict the end of high savings and CD rates might be around the corner, depending on the Fed’s next move. And some banks have already started lowering rates slightly. Last week, for example, Rising Bank dropped its one-year CD rate, and CFG Bank lowered rates on its one-, three- and five-year CDs. Today, Rising Bank lowered its one-year CD rate further, and LendingClub’s one-year CD rate dropped, too.
If you’ve been considering opening a CD, you may want to act soon while you can still secure a high APY.
Promotional CD rates pay even more – if you can meet the requirements
We track top banks to compile our CNET average, but you can find banks offering even higher rates for less common CD terms. However, you may need to meet stricter requirements to get these rates.
For example, Bernadette Joy, a personal finance coach and CNET Financial Review Board member, recently locked in a 6.15% APY on an 11-month CD from Truliant Federal Credit Union. But this CD required a $5,000 minimum deposit, which could be prohibitive for some savers. Many of the CDs on our list here require a minimum deposit of $1,000 or less.
You can earn even more with a special 12-month share certificate -- a savings option similar to a CD that’s offered by credit unions -- from Bayer Heritage Federal Credit Union. This certificate offers 6.183% APY if you open it by Nov. 30, 2023. But you must be a member of the credit union to qualify, and membership is available only in specific areas in Ohio, South Carolina, Texas and West Virginia.
It’s important to read the fine print for any CD you’re considering to make sure a high rate is worth any potential trade-offs. If you think you’ll need your funds before the term is up, for instance, you could incur an early withdrawal penalty that negates the benefits of a higher APY.
How to choose the right CD for you
APY is an important factor when comparing CD accounts, but it’s not the only one. You should also consider:
- 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: Accounts with FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per person, per institution if the bank fails. Confirm that any institution you’re considering is an FDIC or NCUA member to ensure your money is safe.
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.