Money Banking
Article updated on Aug 05, 2024
Some banks are already lowering rates, but you can earn up to 5.35% APY with the best CDs if you move quickly.
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Our Experts
Written by Dashia Milden Editor Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.
Edited by Tiffany Connors Editor Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.
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 statementOur Experts
Written by Dashia Milden Editor Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.
Edited by Tiffany Connors Editor Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.
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 .
Table of Contents
- Today’s best CD rates
- Is now the time to lock in a CD?
- How to choose the right CD account
- Methodology
Key Takeaways
- You can earn up to 5.35% APY for a one-year CD.
- APYs will likely stay high for a while longer, but some banks are lowering rates for select terms.
- Experts anticipate rate cuts later this year, so the sooner you lock in a great APY, the higher your earning potential.
There’s a good chance that the Federal Reserve will finally cut interest rates next month after it raised them to a 20-year high a year ago. But don’t wait for the Fed to act if you want to rack up interest on your savings.
Some CD rates have already slipped in the last few weeks for a few terms, but you can still find an annual percentage yield as high as 5.35% for a one-year CD and 4.5% for a five-year term. Rates will likely only fall from here, so now’s the time to act.
Here’s the latest on CD rates and what to expect next.
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:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.30% | Bask Bank, CommunityWide Federal Credit Union | $130.79 |
| 1 year | 5.35% | NexBank | $267.50 |
| 3 years | 4.55% | MYSB Direct, NexBank | $714.02 |
| 5 years | 4.45% | BMO Alto | $1,216.02 |
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.
Is now the time to lock in a CD?
The Fed regularly adjusts the federal funds rate to stabilize the economy, which determines how much it costs banks to borrow and lend money to each other, so banks tend to follow the Fed’s lead.
We saw banks push interest rates higher when the Fed raised rates. When the Fed held rates steady, some banks held rates steady for weeks while others quietly lowered select terms.
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.
So, the sooner you lock in a high APY, the greater your earning potential could be.
“Since rates are high, locking in now could be a smart move,” said Bola Sokunbi, a CNET Money expert review board member and founder of Clever Girl Finance.
Which CD should you choose? Short-term rates for certificates of deposit will let you have access to your money sooner, while a long-term CD lets you lock in a fixed rate for a guaranteed return. Sokunbi recommends investing in a combination of both through CD laddering, which helps spread out your risk and optimize returns.
Here’s where CD rates stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate | |
| 6 months | 4.68% | No change | 1.81% | |
| 1 year | 4.89% | -0.41% | 1.85% | |
| 3 years | 4.08% | -0.73% | 1.44% | |
| 5 years | 3.94% | -1.00% | 1.43% |
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.
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Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.
