Certificate of deposit rates have been steadily rising all year, giving savers an excellent opportunity to earn extra interest on their money. Annual percentage yields, or APYs, currently hover around 5% or higher for top CDs, compared with the top national average of only 1.79%.
The main appeal of CD rates is that you lock in a fixed rate when you open an account. So even if rates start to drop, you’ll enjoy the same high yield for your entire term. And with some experts predicting we may have reached the peak of CD rates, now is a great time to lock in a rate while they’re still elevated.
Savings and CD rates remain high, but experts recommend comparing rates before opening an 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 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% | Forbright; LendingClub | $290.00 |
| 3 years | 5.05% | MYSB Direct | $796.40 |
| 5 years | 4.90% | MYSB Direct | $1,351.08 |
Short-term vs. long-term CDs
In general, longer CD terms (over one year) have better APYs than shorter ones (one year and under). A five-year CD usually offers the best rate since you’re agreeing to lock your money up for a longer time. But in today’s high-rate environment, short-term CDs like six-month and one-year terms are offering higher rates than long-term CDs.
If a short-term CD fits your money goals, experts recommend locking in a high rate now, before rates start falling.
“Short-term CDs are better right now, particularly 10- to 12-month CDs since they are offering the most competitive rates. It’s long enough to give people some meaningful earnings in interest but not so long that they don’t miss out on future opportunities,” said Bernadette Joy, a personal finance coach and CNET expert review board member. “I am recommending these for my community who are working on saving for things like future vacations, down payments and other goals.”
Make sure the CD you choose offers a term that fits your timeline. If you need to access your money before the CD matures, you’ll likely face early withdrawal penalty, which can significantly cut into the interest you earn.
Where are CD rates heading?
Savings rates on deposit accounts are influenced by the federal funds rate, which determines how much banks charge to lend and borrow money. The Federal Reserve periodically adjusts this rate to boost the economy and curb inflation. Banks tend to follow suit, raising rates on consumer products like credit cards, personal loans and savings accounts.
The Fed has regularly raised rates since March 2022 to combat persistently high inflation, leading to a steady increase in CD rates. And while the central bank has chosen to pause rate hikes during its last two meetings, CD rates remain high.
Here’s how rates for the top CDs currently compare to average national rates:
| Term | CNET Average* | Average FDIC APY |
| 6 months | 4.87% | 1.39% |
| 1 year | 5.28% | 1.79% |
| 3 years | 4.34% | 1.38% |
| 5 years | 4.09% | 1.38% |
But many experts expect CD rates to begin falling mid-2024 -- and potentially sooner depending on the Fed’s next move. As inflation cools and banks begin pumping the brakes on rate increases, some experts predict we’ve already reached the peak of CD rates. That makes now a great time to open a CD and lock in a high APY before rates start dropping.
Advice for CD shoppers
Rates are one thing to weigh when comparing your CD options, but they’re not the only thing. Also consider these factors to find the best CD for you.
- How soon you’ll need the funds: Most banks charge an early withdrawal penalty if you take out your funds before the CD term ends. This can eat into your interest earnings. So choose a term that fits your savings goals
- Minimum deposit: Some CDs have no minimum deposit requirement, while others require a certain amount to open an account (typically, $500 to $1,000). This can influence which CD is best for you.
- Monthly fees: Many online banks don’t charge maintenance fees, but be sure to read the fine print for any account you’re considering.
- Federal deposit insurance: Look for an FDIC-insured bank or NCUA-insured credit union. This will protect your savings up to $250,000 per person, per institution if the bank fails.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We researched CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service. CNET calculates weekly averages every Monday.
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.
