If you’re looking for a safe place to stash extra cash you don’t need to access immediately, a certificate of deposit can be a great solution. You agree to keep your money in the account for the full term -- typically, anywhere from a few months to several years -- and in exchange, the bank locks in your rate when you open the account. That means you earn the same amount of interest no matter where rates go after that.
“CDs are low-risk investments that are appropriate for people looking to grow their assets without the risk of the stock and bond markets,” said Jesse Carlucci, chief investment officer at Arrow Investment Management.
CD rates have been falling for months, but they remain attractive, with the best CDs offering annual percentage yields, or APYs, up to 5.5%. And with experts predicting rates will continue to fall in the coming months, now’s the time to open an account and secure a great rate while you still can.
Read on to learn where you can score a great rate today.
Key takeaways
- You can earn up to 5.5% with today’s top CDs.
- Rates are expected to fall in the coming months.
- By opening a CD now, you can lock in a high rate and protect your earnings against future rate drops.
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 | 5.50% | BMO Alto; CommunityWide Federal Credit Union | $135.66 |
| 1 year | 5.40% | Alliant Credit Union; Bask Bank | $270.00 |
| 3 years | 4.76% | First Internet Bank of Indiana | $748.53 |
| 5 years | 4.61% | First Internet Bank of Indiana | $1,263.77 |
Experts believe rates are on the way down
APYs skyrocketed starting in March 2022 as the Federal Reserve began regularly raising the federal funds rate to fight record inflation. 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 do the same, raising rates on consumer products from credit cards to CDs.
The last time the Fed raised rates was in July 2023, and its last four meetings have resulted in rate hike pauses. As a result, we’ve seen CD rates gradually fall since the end of 2023.
Here’s where APYs stand compared to last week:
| Term | CNET average APY | Weekly change* | Average FDIC rate |
| 6 months | 4.90% | No change | 1.53% |
| 1 year | 5.03% | -0.20% | 1.83% |
| 3 years | 4.14% | -0.24% | 1.40% |
| 5 years | 3.95% | -0.25% | 1.40% |
*Weekly percentage increase/decrease from Feb. 19, 2024, to Feb. 26, 2024.
Inflation is cooling -- it’s currently 3.1%, a far cry from the 9.1% it hit in June 2022. But it has a way to go before it reaches the Fed’s 2% target. It rose by 0.3% in January, bringing it to 3.1% year over year, according to the latest Consumer Price Index report. The Fed is expected to lower rates later this year, but it will continue monitoring economic conditions to determine its next move.
For now, rates remain elevated, but experts expect them to drop in mid-to-late 2024. So, if you’ve been considering opening a CD, now’s the time to do so.
How you’ll benefit from opening a CD today
With rates as high as they’re expected to go, now is the time to lock in an APY before they drop further. But a fixed APY isn’t the only perk of opening a CD today. CDs offer attractive benefits in any rate environment.
CDs held at banks covered by the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration are protected by federal deposit insurance. That means your money is safe up to $250,000 per person, per institution if the bank fails. This makes them a low-risk way to grow your savings.
Plus, most banks charge an early withdrawal penalty if you take out money before the CD matures. This can eat away at your earnings and discourage you from tapping into your funds before you need them.
What to consider when comparing CD accounts
In addition to a competitive APY, here’s what you should look for when comparing CD accounts:
- How soon you’ll need the funds: Early withdrawal penalties can eat 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 have no such requirement. How much money you have to put away can help you narrow down your account options.
- Fees: Fees can erode your balance. 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 considering.
- Federal deposit insurance: Check that any institution you’re considering is an FDIC or NCUA member to ensure 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 make sure 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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