Today’s Best CD Rates: Nov. 20, 2023 -- Interest Rates Remain High, but They’re Starting to Waiver

High CD rates have been the norm for over a year and a half now, with top CDs offering 5.5% or higher annual percentage yields, or APYs. And while this is largely still the case, we’re starting to see some banks make adjustments to specific terms.

One of the benefits of a CD is that your rate is locked in when you open the account. That means you’ll enjoy the same high earnings even if rates drop. The longer the term, the longer your earnings will last.

But over the past two weeks, rates have begun to fall on long-term CDs -- those with terms of one year or more. And experts predict they’ll continue to drop through the end of 2023 and into the beginning of 2024.

In other words, now’s the time to act if you’ve been considering opening 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’s a look at some of the top CD rates available right now and how much you could earn if you deposited $5,000 today.

Recent CD rate drops are expected to continue

Savers have enjoyed high CD rates since March 2022 as the Federal Reserve 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.

While the Fed opted to pause rate hikes at its last two meetings, CD rates have held high -- for the most part. Here’s a look at how they’ve moved since last week:

From Nov. 13 to Nov. 20, average APYs increased for six-month CD terms, and average one-year and three-year CD rates went down slightly. Average five-year CD rates held steady. But that’s just looking at the overall averages. On a more micro level, we’re beginning to see banks nudge rates downward, particularly for one-year CDs.

Over the last two weeks, Rising Bank, CFG Bank and LendingClub all dropped their one-year CD rates -- with Rising Bank dropping them twice in the past month. CFG also dropped its three- and five-year CD rates, and Everbank lowered its three-year CD rate. And experts expect this trend will continue over the next several months.

“Many of the banks that have been offering competitive CD rates have begun to taper back slightly,” said Dana J. Menard, CFP, RLP, CEPA, CBDA, CDAA, founder and lead financial planner at Twin Cities Wealth Strategies. “The Fed stated that it might raise rates once more before beginning to taper them into 2024, which would lead to lower CD rates in the future. Therefore, the banks are building the anticipated rate-lowering into their longer-term CD offerings.”

As Rita Soledad Fernández Paulino, a personal finance coach and founder of Wealth Para Todos, explained, a lower federal funds rate means “banks can lend each other money for less interest. Therefore, they don’t need to be relying on consumer savings and can pay consumers less interest for keeping money in CDs.”

So, you may want to act soon to open a CD while you can still secure a high APY.

A promotional rate could earn you even more -- if you qualify

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 only available 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 tradeoffs. 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.

What to keep in mind when selecting a CD

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.

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.