Best CD Rates Today -- Lock in a High Interest Rate Ahead of Fed Decision, July 31, 2024

A certificate of deposit is a safe investment in any rate environment, but especially when rates are as high as they are now. But with inflation finally showing signs of cooling, experts expect the Fed to start cutting rates as soon as September. That means we could see CD rates continue to dip.

Right now, the best CDs offer up to 5.35% annual percentage yield, or APY -- more than three times the national average for some terms. But with several banks already lowering rates across CD terms, the sooner you open an account, the greater your earning potential could be. 

Here’s where you can find the top APYs leading up to today’s Fed vote.

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.

How the Fed’s decision affects CD rates 

All eyes are on the Fed as it meets today to decide what to do next with the federal funds rate. 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 paused rates seven times starting with its September 2023 meeting. As a result, APYs plateaued for months, then began falling as experts predicted at least one rate cut by the end of 2024.

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

The latest Consumer Price Index report, which measures inflation rate changes, revealedinflation is down 0.1% year over year. Still, experts don’t expect the Fed to cut rates at this week’s meeting as it’s not yet where they’d like to be.

“For the Federal Reserve to consider lowering interest rates, they need to see a continued drop in inflation and assurance that it will not rise again,” said Anthony Saccaro, President at Providence Financial & Insurance Services. “Currently, the economic data does not justify a rate cut. The Fed’s primary goal is to avoid being reactive to a major economic correction or recession. Instead, they aim to lower rates as a result of a controlled economic slowdown and stabilized inflation, which hasn’t occurred yet.”

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.

What to look for in a 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 ano-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. Manyonline 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 orcredit 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.