Best CD Rates Today -- APYs Hold High Following Fed Decision, Aug. 2, 2024

The Federal Reserve voted to leave the federal funds rate steady again when it met on Wednesday, citing “real progress” on the inflation front. This decision follows three months of cooling inflation numbers, leaving many experts to believe rate cuts could start as soon as September. 

However, the Fed’s continued pause is good news for savers. Though certificate of deposit rates have slowly started slipping in the last few weeks, you can still lock in an annual percentage yield as high as 5.35% with today’s top CDs. But rates will likely only fall from here, so now’s the time to act. 

Here’s where you can find the top APYs following the latest Fed decision. 

Today’s best CD rates

Here are some of the top rates available on today’s best CDs and how much you could earn by depositing $5,000 right now:

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.

What the Fed’s latest decision means for CD rates

The Fed doesn’t directly set CD interest rates, but its decisions definitely have ripple effects. 

The Fed regularly adjusts this rate to stabilize the economy, which impacts where banks set APYs for their consumer products like savings accounts and CDs. Since the federal funds rate determines how much it costs banks to borrow and lend money to each other, banks tend to follow the Fed’s lead -- when it raises the federal funds rate, banks raise their APYs, and vice versa. 

Beginning in March 2022, the Fed raised the federal funds rate 11 times to combat record-high inflation, and CD rates took off. But as inflation began to show signs of cooling, the Fed elected to leave the federal funds rate at its target range of 5.25% to 5.5% at its September 2023 meeting – and every meeting since then. 

The Fed’s latest rate pause has kept APYs steady for now. But Fed Chair Jerome Powell said a “rate cut could be on the table at the September meeting,” meaning now’s the time to lock in a competitive rate. Once the Fed makes moves to drop rates, CD rates will likely drop too.  

That said, we’re already seeing banks drop APYs across CD terms in anticipation of future cuts. And with Fed rate cuts on the horizon, this trend is likely to continue. So the sooner you lock in a high APY, the greater your earning potential could be.

Here’s where CD rates stand compared to last week:

How to choose the right CD account

A competitive APY is important, but there are other things you should consider when comparing CDs to get the best product for your needs:

• When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So, be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d get with a traditional CD of the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account -- typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow down your options.
• Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
• Federal deposit insurance: Make sure any bank or credit union you’re considering is an FDIC or NCUA member so your money is protected if the bank fails.
• Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that’s 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, Connexus Credit Union.