Best CD Rates Today — APYs Are Falling Fast, Aug. 23, 2024 [CNET]
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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.
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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.
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Key Takeaways
- Today’s best CDs offer APYs as high as 5.25%.
- APYs have been falling for months, but the pace picked up in recent weeks as banks anticipate a Fed rate cut in September.
- The sooner you lock in one of today’s top APYs, the more interest you stand to earn.
Today’s certificate of deposit rates are the highest you may see for a while. The best CDs currently offer up to 5.25% annual percentage yield, or APY, but banks have been slashing rates in recent weeks. And with inflation cooling and a Federal Reserve rate cut on the table, this trend is likely to continue.
When you open a CD, your rate is fixed, so you’ll earn the same returns no matter where rates go after that. But with APYs falling fast, the longer you wait to do so, the lower the rate you could get — and the lower your earning potential could be.
Here’s where you can score one of today’s highest CD rates.
Today’s best CD rates
These 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 | 5.25% | CommunityWide Federal Credit Union | $129.57 |
1 year | 5.15% | First Internet Bank of Indiana | $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 CD rates have peaked
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* | Average FDIC rate | |
6 months | 4.58% | -2.14% | 1.81% | |
1 year | 4.68% | -0.85% | 1.85% | |
3 years | 3.96% | -0.75% | 1.44% | |
5 years | 3.84% | -0.52% | 1.43% |
*Weekly percentage increase/decrease from Aug. 12, 2024, to Aug. 19, 2024.
After this week’s Consumer Price Index report showed inflation continues to cool, this cut seems even more likely, and we’ve seen more and more banks slashing APYs across CD terms. So, the sooner you lock in a high APY, the greater your earning potential could be.
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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 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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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.