Today’s Best CD Rates: Nov. 30, 2023 -- Sky-High APYs Have Started to Waver

What goes up must come down, and it seems we may be at or near that point with CD rates. After over a year and a half of record-high annual percentage yields, we’ve started to see APYs quietly drop over the past few weeks. The decreases haven’t been drastic, but they do signal a shift savers should note: If you’ve been waiting to open a CD, you may want to act sooner rather than later.

Unlike high-yield savings accounts, CD rates are fixed, and they’re locked in when you open the account. So if rates fall, you’ll still enjoy the same high earnings for the CD’s entire term. And with rates wavering recently, securing a good APY now could protect you from additional drops.

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 if you deposited $5,000 today.

CD rates remain high, but they’re starting to slip

CD rates have steadily increased since March 2022 as the Federal Reserve regularly raised the federal funds rate to combat inflation. This rate affects how much it costs banks to borrow and lend money, so the higher it is, the higher banks raise their CD rates to attract new customers (and their money).

But with inflation finally cooling, the Fed has opted to pause rate hikes at its last two meetings. As a result, banks have begun easing their rates. Here’s where rates are compared to last week:

From Nov. 20 to Nov. 27, rates have gone down slightly for one- and three-year CDs, continuing the trend we’ve seen over the past few weeks. Several banks have lowered their long-term CD rates recently, and experts expect rates will continue to decline over the next several months.

“Consumer Price Index (CPI) numbers for October showed below-expectation inflation for both headline CPI (3.7% to 3.2%) and core CPI (4.1% to 4.0%),” said Jesse Carlucci, Ph.D., CFP, Chief Investment Officer at Arrow Investment Management LLC. “Together with comments recently from the Federal Reserve chair, Jerome Powell, this has led to the expectation that we have reached the peak of the interest rate cycle.”

CD rates aren’t likely to drop precipitously in the near future, but even the gradual erosion we’ve seen lately makes a difference in your bottom line. So, if you’ve been thinking of opening a CD, now is the time to do it before rates drop further.

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.

Tips for choosing the right CD

APY is an important factor when comparing CD accounts, but it’s not the only one.

“I wouldn’t stress too much about the difference in a few tenths of a percentage,” said Bernadette Joy, a personal finance coach and CNET Financial Review Board member. “But I do think it’s important to make sure the CD is at least earning more than comparable high-yield savings accounts. HYSAs are more liquid, and if you’re going to lock up your money for several months, you should get paid more to do so than an HYSA.”

In addition to comparing APYs, you should also weigh the following when choosing a CD:

• 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.
• Customer service: Read customer reviews and ratings 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 and Connexus Credit Union.