CD rates remain high this week, with today’s top CDs offering annual percentage yields of 5.5% or higher. However, steadily rising rates are no longer the headline.
After over a year and a half of regular rate increases, CD rates have started to settle, and some banks are quietly lowering rates across several CD terms.
Is this a sign that CD rates have peaked, as some experts predicted? Possibly. But you can still bank on a CD to protect your earnings if rate drops persist.
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.
| 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 |
Long-term CD rates continue to slip
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.
Since the Fed opted to pause rate hikes at its last two meetings, CD rates have largely remained high -- but they’ve begun wavering recently. Here’s a look at how they’ve moved since last week:
| Term | CNET Average APY* | Weekly Change** | Average FDIC rate |
| 6 months | 4.93% | No change | 1.43% |
| 1 year | 5.26% | -0.19% | 1.85% |
| 3 years | 4.35% | -0.23% | 1.39% |
| 5 years | 4.11% | No change | 1.39% |
**Percentage increase/decrease from Nov. 20, 2023, to Nov. 27, 2023.
From Nov. 20 to Nov. 27, average APYs for six-month and five-year CD terms held steady, while one- and three-year CD rates dropped. Experts believe long-term CD rates will continue to go down 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.”
Why you should open a CD now
CDs are ideal for those who want a safe place to put their money while earning some extra interest. CD rates are typically on par with high-yield savings account rates, but savings account rates are variable, which means your APY could change at any time. When you open a CD, you lock in the rate in exchange for agreeing to keep your funds in the account until the term is up.
“CDs are especially useful when you know you’ll need the money at a certain point in the future, and you can align the maturity date of the CD with when you’ll need the money,” said Keith Spencer, CFP, founder and financial planner at Spencer Financial Planning, LLC. “Examples might include purchasing a car, paying for a wedding and making a down payment on a home.”
In addition, 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 enjoy peace of mind.
How to choose 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: 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.
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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