Best CD Rates Today -- This Could Be Your Last Chance to Grab an APY as High as 5.35%, July 26, 2024

Although rates aren’t peaking like they were a year ago, the best certificates of deposits still offer up to 5.35% annual percentage yield, or APY. That could change soon, as the Federal Reserve is expected to cut interest rates as early as September and possibly again before the year is out. 

A CD is considered a safe investment, making it a good place to stash some of your savings. By locking in an interest rate with a CD, you can continue to earn a high APY even if tomorrow’s rate takes a dive. 

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 vote affects interest rates

The Fed doesn’t directly set CD rates, but its actions have ripple effects. It regularly adjusts the federal funds rate to keep the economy in check, raising it when inflation is high and lowering it when inflation cools. 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 raise APYs on consumer products likesavings accounts and CDs to boost their cash reserves and stay competitive. When the Fed cuts this rate, APYs on these products drop, too.

Starting in March 2022, the Fed raised the federal funds rate 11 times to combat record-high inflation, and CD rates skyrocketed. But as inflation showed signs of cooling, the Fedpaused rates seven times beginning with its September 2023 meeting. As a result, CD rates plateaued and have begun dropping as experts speculate on the Fed’s next moves.

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

The timing of Fed rate cuts depends on where inflation stands when the Fed meets next. The latest Consumer Price Index report, which measures inflation rate changes, revealedinflation is down 0.1% year over year. 

But whatever the Fed decides at its upcoming meetings, we’re already seeing several banks of the banks we track at CENT drop APYs across CD terms. And with Fed rate cuts on the horizon, this trend is likely to continue. In other words, locking in a high APY now could be a smart strategy.

“If the Fed reduces rates, CD interest rates will most likely start to decline as well,” said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group. “Should that happen, it would serve as an ideal time to secure a longer-term CD, provided it aligns with your needs and timeline for your financial goals. By doing so, you can lock in a higher rate for the duration of the CD before rates potentially drop.”

What to consider before investing 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 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.