Best CD Rates Today, Sept. 3, 2024: Lock in a High APY Before Rates Drop This Fall [CNET]

APYs are falling fast. Here’s where you can still snag one up to 5.25%.

Cooling inflation is good news for borrowers, but for savers, it means time is running out to maximize your earnings.

Certificate of deposit rates remain elevated, with the best CDs currently offering up to 5.25% annual percentage yield, but APYs have been falling for months, and the pace has picked up as banks anticipate a Federal Reserve rate cut later this month. If you want to earn the most interest on your money, now’s the time to lock in an APY before rates fall further.

Today’s best CD rates

These are some of the highest CD rates today 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	5.05%	America First Credit Union; First Internet Bank of Indiana	$252.50
3 years	4.40%	MYSB Direct	$689.47
5 years	4.24%	First Internet Bank of Indiana	$1,153.78

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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 inflation affects CD rates

The Fed regularly adjusts the federal funds rate to stabilize the economy. When inflation is high — as it’s been for years — the Fed raises this rate to discourage borrowing and decrease consumer spending in the hopes that this drives prices down. The federal funds 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 like CDs and savings accounts. 

Beginning in March 2022, the Fed raised rates 11 times to fight rampant inflation, and CD rates 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 the Fed has indicated could happen this month  With the latest inflation report showing inflation is on pace with expectations, this cut appears even more likely. We’ve seen banks increasingly slash APYs in recent weeks as a result.

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

Term	CNET average APY	Weekly change*	Average FDIC rate
6 months	4.56%	-0.44%	1.82%
1 year	4.66%	-0.43%	1.85%
3 years	3.89%	-1.77%	1.44%
5 years	3.77%	-1.82%	1.42%

“Most economists expect the Fed to cut the federal funds rate, and the question at this point seems to be by how much,” said Bobbi Rebell, certified financial planner and Personal Finance Expert with BadCredit.org. “CD rates don’t always align exactly with Fed rate cuts, but the lower rates go, the more likely CD rates are to move to the downside.”

In other words: The sooner you secure a high APY, the greater your earning potential could be.

How to choose the best CD for you

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.