Article updated on Aug 19, 2024
Why You Can Trust CNET Money
Our mission is to help you make informed financial decisions, and we hold ourselves to strict . This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .
Written by Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
Edited by Courtney Johnston Senior Editor Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.
CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.
Reviews ethics statement
CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.
Reviews ethics statementWhy You Can Trust CNET Money
Our mission is to help you make informed financial decisions, and we hold ourselves to strict . This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .
Zooey Liao/CNET
Key takeaways
- Today’s best CDs boast APYs as high as 5.30%.
- Your APY is locked in when you open a CD.
- With banks slashing APYs and a Fed rate cut on the horizon, now’s the time to score a high APY and protect your earnings.
The clock is ticking on high certificate of deposit rates. You can earn up to 5.30% annual percentage yield, or APY, with today’s best CDs, but rates have been slipping for weeks. And with the Federal Reserve expected to cut interest rates in September, now’s the time to snag one of these APYs while you still can.
Your APY is locked in when you open a CD, which means your returns stay the same even if overall rates drop. But the sooner you open a CD, the better -- you may not find as great a rate if you delay.
Today’s best CD rates
Here are some of the highest rates available on today’s best CDs and how much you could earn by depositing $5,000 right now:
Term | Highest APY | Bank | Estimated earnings |
6 months | 5.30% | CommunityWide Federal Credit Union | $130.79 |
1 year | 5.15% | CommunityWide Federal Credit Union, First Internet Bank of Indiana, Limelight Bank | $257.50 |
3 years | 4.55% | NexBank | $714.02 |
5 years | 4.35% | First Internet Bank of Indiana | $1,186.32 |
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.
Why you shouldn’t wait to open a CD
The Fed regularly adjusts the federal funds rate to stabilize the economy. This rate determines how much it costs banks to borrow and lend money to each other, so banks tend to follow the Fed’s lead.
When the Fed started raising rates in March 2022 to fight rampant inflation, APYs on CDs skyrocketed. As inflation began showing signs of cooling, the Fed held rates steady eight times starting in September 2023, and APYs largely held steady too.
In recent months, APYs have wavered as banks anticipated a rate cut, which Fed Chair Jerome Powell said “could be on the table at the September meeting.”
Here’s where CD rates are compared to last week:
Term | CNET average APY | Weekly change* | AverageFDIC rate | |
6 months | 4.58% | -2.14% | 1.81% | |
1 year | 4.72% | -3.48% | 1.85% | |
3 years | 3.99% | -2.20% | 1.44% | |
5 years | 3.86% | -2.03% | 1.43% |
*Weekly percentage increase/decrease from Aug. 5, 2024, to Aug. 12, 2024.
After this week’s Consumer Price Index report showed inflation continues to cool, this cut seems even more likely. That means banks are likely to continue dropping rates across CD terms. In other words: The sooner you lock in a high APY, the greater your earning potential could be.
CNET Money brings financial insights, trends and news to your inbox every Wednesday.
By signing up, you will receive newsletters and promotional content and agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Here’s all of the excitement headed to your inbox.
What to look for in a CD
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.
Recommended Articles
Best CD Rates for August 2024
Best CD Rates for August 2024
Get Today’s Highest APY With These 6-Month CDs
Get Today’s Highest APY With These 6-Month CDs
If You Deposit $2,000 Into This CD Right Now, You’d Earn About $100 in a Year
If You Deposit $2,000 Into This CD Right Now, You’d Earn About $100 in a Year
Best No-Penalty CD Rates for August 2024
Best No-Penalty CD Rates for August 2024
The Magic of Compound Interest Is Helping Double My Savings in One Year
The Magic of Compound Interest Is Helping Double My Savings in One Year
‘The Economy Isn’t Falling Off a Cliff.’ These 4 Expert Steps Can Help You Prepare if You’re Worried
‘The Economy Isn’t Falling Off a Cliff.’ These 4 Expert Steps Can Help You Prepare if You’re Worried
Written by
Kelly Ernst
Editor
Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.