A certificate of deposit is a low-risk way to grow your savings at a predictable rate of return. When you open a CD, your rate is locked in, so your earnings stay the same for the entire term — even if overall interest rates go down.
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CD rates have been falling since late 2023, but they remain attractive. Top CDs currently offer annual percentage yields, or APYs, as high as 5.5%. And with rates expected to continue dropping, now’s the time to secure a high APY while you still can.
“I still think that CDs are a financial product worth considering for people who want to keep their money in cash-like instruments with little volatility, so this is great for holding emergency funds and savings that you need in the next year or two,” said Shang Saavedra, CEO of Save My Cents and a CNET Financial Review Board member.
Read on to learn where you can find today’s best CD rates.
Key takeaways
- You can lock in an APY up to 5.5% with one of today’s top CDs.
- Experts expect rates will drop in the coming months.
- Opening a CD now protects your earnings against future rate 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 by depositing $5,000 right now:
Which CD terms pay the most right now?
CD rates have been high for nearly two years. In March 2022, the Federal Reserve began regularly raising the federal funds rate to combat inflation. This rate determines how much it costs banks to borrow and lend money to each other, so when the Fed raises this rate, banks tend to follow suit, raising rates on consumer products from credit cards to CDs to attract new customers (and their cash).
As the federal funds rate soared, so did CD rates. But the Fed paused rate hikes at its last four meetings, and CD rates leveled off at the end of 2023. While you can still find APYs as high as 5.5%, banks have been cutting rates across terms, and this trend is likely to continue as the Fed is expected to start cutting rates later this year.
Here’s where APYs stand compared to last week:
Term | CNET average APY | Weekly change* | Average FDIC rate |
6 months | 4.89% | -0.20% | 1.51% |
1 year | 5.05% | -0.20% | 1.86% |
3 years | 4.15% | +0.24% | 1.40% |
5 years | 3.96% | +0.25% | 1.41% |
*Weekly percentage increase/decrease from Feb. 12, 2024, to Feb. 19, 2024.
Typically, long-term CDs (those over a year) offer higher rates than short-term ones (those up to a year) to entice customers to keep their funds with the bank longer. But right now, short-term CDs are outperforming long-term ones, likely because banks are hesitant to lock customers into a high APY for too long with rates expected to drop in the coming months.
That said, you could still earn more by putting your money in a long-term CD with a slightly lower rate due to the power of compound interest. One way to get the best of both worlds is to consider laddering your CDs, or splitting your money up between multiple CDs with varying terms. When one CD matures, you can decide if you’d like to withdraw your funds or reinvest them in a new CD at the then-current rates. This allows you to regularly re-evaluate the best place for your money and take advantage of future rate changes.
Benefits of opening a CD today
With rates as high as they’re expected to go, now is the time to lock in an APY before they drop further. But a fixed APY isn’t the only perk of opening a CD today. CDs offer attractive benefits in any rate environment.
CDs held at banks covered by the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration are protected by federal deposit insurance. That means your money is safe up to $250,000 per person, per institution if the bank fails. This makes them a low-risk way to grow your savings.
Plus, most banks charge an early withdrawal penalty if you take out money before the CD matures. This can eat away at your earnings and discourage you from tapping into your funds before you need them.
What to look for in a CD account
In addition to a competitive APY, here’s what you should look for when comparing CD accounts:
- How soon you’ll need the funds: Early withdrawal penalties can eat away at your interest earnings. So, be sure to choose a term that fits your savings timeline. You should be comfortable leaving your money untouched for the entire term.
- Minimum deposit requirement: Some CDs require a certain amount to open an account — typically, $500 to $1,000. Others have no such requirement. How much money you have to put away can help you narrow down your account options.
- Fees: Fees can erode your balance. Many online banks don’t charge maintenance fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re considering.
- Federal deposit insurance: Check that any institution you’re considering is an FDIC or NCUA member to ensure your money is protected if the bank fails.
- Customer ratings and reviews: Check out sites like Trustpilot to see what customers are saying about any bank you’re considering. You want 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.