Key takeaways
- Top CDs boast APYs as high as 5.35%.
- Opening a CD today protects your earnings from anticipated rate drops.
- While short-term CDs currently have the best rates, you can find high APYs across multiple terms.
A certificate of deposit is an easy way to keep your savings safe and earn interest to reach your financial goals faster. CDs are low risk and offer guaranteed returns that stay the same no matter where rates head in the future. And now is a particularly good time to open an account.
“CDs can be a smart investment in any rate environment,” said Dana Menard, CFP, founder and lead financial planner at Twin Cities Wealth Strategies. “But with CD rates on the way down, if you’ve been thinking of opening an account, now is the time to act.”
Today’s top CDs offer annual percentage yields, or APYs, as high as 5.35%. But great rates won’t stick around forever. APYs are already heading downward, and this trend is likely to continue in the coming months. So if you’ve been thinking about opening a CD, now is the time to act.
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.
Today’s best CD rates
Here are some of the top CD rates available right now and how much you could earn by depositing $5,000 right now:
| Term | Highest APY | Bank | Estimated earnings |
| 6 months | 5.35% | Rising Bank | $132.01 |
| 1 year | 5.35% | NexBank | $267.50 |
| 3 years | 4.66% | First Internet Bank of Indiana | $732.08 |
| 5 years | 4.55% | First Internet Bank of Indiana; First National Bank of America | $1,245.83 |
These CD terms pay the best rates right now
Typically, long-term CDs (those with terms over one year) have better APYs than short-term CDs (those with terms a year or under). That’s because banks want to incentivize customers to leave their money deposited for a longer period. But for the past several months, short-term CDs have boasted the best rates as banks wait to see what the Federal Reserve will do next.
CD rates are affected by the federal funds rate, which determines how much it costs banks to borrow and lend money to each other. The Fed regularly adjusts this rate to stimulate the economy and keep inflation in check. When the federal funds rate goes up, banks tend to follow suit, raising their rates on consumer products like savings accounts and CDs to remain competitive and boost their cash reserves.
From March 2022 to July 2023, the Fed raised the federal funds rate to combat record-high inflation, and CD rates skyrocketed. Here’s how average CD rates moved from 2010 to 2023, according to CNET sister site Bankrate.
But the central bank has paused rates at its last five meetings, and experts expect it will begin cutting rates later this year. As a result, CD rates have been steadily declining since the end of 2023. Here’s where rates stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate |
| 6 months | 4.75% | No change | 1.57% |
| 1 year | 4.97% | No change | 1.81% |
| 3 years | 4.11% | No change | 1.41% |
| 5 years | 3.94% | No change | 1.39% |
*Weekly percentage increase/decrease from April 15, 2024, to April 22, 2024.
With rates likely to fall in the coming months, banks may be hesitant to lock customers into current APYs for longer terms. Short-term CDs have outperformed long-term ones for months. But that doesn’t necessarily mean they’re the best fit for you.
“The term of any CD you purchase should be equal to the time limit that you have for those dollars,” said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group. “If you feel you may need them in one year, do not go out more than one year. If you can go longer, consider locking in a nice rate for the next two to two and a half years because it may be some time before we see these fixed FDIC-insured rates again.”
You’ll ultimately earn more interest with a long-term CD, even if its rate is slightly lower than a short-term CD. But if you’ll need your funds in the near future, you should choose a shorter term to avoid early withdrawal penalties that can negate any extra interest you earn from a higher APY. The best fit for you is the CD that gives you the highest APY for your savings timeline. With rates high across the board for top CDs, whatever term you choose, you’ll be shielding your earnings from future rate drops.
Why you shouldn’t wait to open a CD
With rates as high as they’re expected to go, now’s the time to open a CD and lock in a high APY. But that’s not the only reason to open an account today. CDs offer attractive benefits in any rate environment.
CDs are insured up to $250,000 per person, per bank, as long as the bank is insured by the Federal Deposit Insurance Corporation. Credit unions offer the same protection through the National Credit Union Administration. That means your money is safe up to the deposit limits if the bank fails.
Plus, unlike investments such as stocks, CDs are low-risk. You won’t lose your principal deposit unless you run into early withdrawal penalties, which you can easily avoid by choosing the right term.
What to look for when comparing CD accounts
In addition to a competitive APY, here’s what you should consider when comparing CD accounts:
- How soon you’ll need your money: Early withdrawal penalties can chip away at your interest earnings. So, be sure to choose a term that fits your savings timeline. You should be comfortable leaving your money untouched for the entire term.
- Minimum deposit requirement: Some CDs require a certain 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 the right account for you.
- Fees: Fees can eat into your earnings. Many online banks don’t charge maintenance 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 institution you’re considering is an FDIC or NCUA member so your money is protected if the bank fails.
- Customer ratings and reviews: Check out sites like Trustpilot to see what customers are saying about any bank you’re considering. You want to know that the bank is 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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