- Today’s top CDs offer up to 4.70% APY.
- With rates on the way down, now’s the time to lock in a great APY.
- Opening a CD today protects your returns from additional rate drops.
There’s still time to maximize your returns with a certificate of deposit, but the key is to act now.
CD rates have been falling since the Federal Reserve began cutting interest rates in September, and they’re likely to keep falling after the Fed’s latest cut. You can still earn up to 4.70% annual percentage yield with today’s best CDs. Since your APY is locked in when you open a CD, opening one now will protect your earning potential from additional rate drops.
Here are some of the highest CD rates right now and how much you could earn by depositing $5,000.
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.70% | Rising Bank | $117.50 |
| 1 year | 4.50% | Limelight Bank | $225.00 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
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 now’s the time to open a CD
Although the days of sky-high CD rates may be over, it’s still smart to lock in a high APY with one of today’s top accounts.
The Fed’s actions play a key part in where banks set their CD and savings account APYs. When the Fed raises the federal funds rate, banks tend to raise APYs on these accounts. When it cuts the federal funds rate, banks cut their APYs.
In recent years, the Fed hiked rates 11 times to fight record inflation, and CD rates soared, reaching 5.65% APY for the banks we track at CNET. Since the Fed started cutting its benchmark interest rate in the fall, savings rates have come down considerably.
CDs offer the ability to lock in a fixed rate for a specified term, so your APY won’t drop even if the Fed continues to lower interest rates. Locking in a high APY now can protect your earnings from additional fluctuations among banks. Today’s top APY of 4.70% is still more than double the national average for some terms.
How CD rates have changed in the last week
| Term | Last week’s CNET average APY | This week’s CNET average APY** | Weekly change*** |
|---|---|---|---|
| 6 months | 4.15% | 4.09% | -1.45% |
| 1 year | 4.08% | 4.03% | -1.22% |
| 3 years | 3.52% | 3.50% | -0.57% |
| 5 years | 3.46% | 3.45% | -0.29% |
APY isn’t the only thing to look for in a CD
A competitive APY is important when comparing CD accounts, but it’s not the only thing you should look at. To find the right account for you, consider these things, too:
- 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 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 include 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 and Connexus Credit Union.
*APYs as of Dec. 27, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Dec. 16, 2024, to Dec. 23, 2024.