Best CD Rates Today – Banks Are Lowering APYs. Grab One of These High Rates While You Can

The Federal Reserve’s first rate cut in years was great news for many people this week. It’s a signal that the Fed is happy with the direction the economy is headed, and it means borrowers could see APRs on things like credit cards and mortgages fall in the coming months. But for savers, the news is not as rosy.

We’re already seeing annual percentage yields, or APYs, plummet across CD terms following the Fed’s decision on Wednesday. Fortunately, you can still find APYs as low as 5.10% with today’s best CDs. And by opening a CD now, you can lock in your current APY and protect your income from additional rate cuts. But the clock is ticking.

So read on and find out where you can find the best APYs today — ASAP.

Today’s Best CD Rates

Here are some of the highest CD interest rates today and how much you can earn by depositing $5,000 now:

Experts recommend comparing rates before opening a CD account to get the best possible APY. Enter your information below to get the best rate from CNET’s partners for your area.

Why You Should Open a CD Today

The Fed regularly adjusts the federal funds rate to stabilize the U.S. economy. When inflation is high, the Fed raises the rate to discourage borrowing, reduce consumer spending and drive down prices. The rate affects how much it costs banks to lend and borrow money to each other, so when the Fed raises it, banks typically raise the APYs on consumer products like CDs and savings accounts.

The central bank has raised the federal funds rate 11 times since March 2022 to combat skyrocketing inflation, and CD yields have soared. As inflation began to cool, the Fed has held rates steady eight times since September 2023, and APYs have also held largely steady. But as inflation continued to cool and banks began to anticipate a Fed rate cut, they began cutting APYs across the maturities — slowly at first, but more rapidly in recent weeks.

Here’s where CD rates stood at the beginning of this week compared to the beginning of last week:

“A rate cut by the Federal Reserve will likely lead to lower interest rates on CDs going forward,” said Faron Daugs, CFP, founder and CEO of Harrison Wallace Financial Group. “While it’s not always a one-for-one cut based on what the Federal Reserve does, we have already seen — and will likely continue to see — CD interest rates come down.”

In other words, the sooner you open a CD, the higher your APY is likely to be.

What should you pay attention to when choosing a CD?

When comparing your CD options, a competitive APY is important. But it’s not the only thing you should consider. To find the right account for you, you should also consider these things:

• When you need your money: Early withdrawal penalties can eat into your interest earnings, so make sure you choose a term that fits your savings timeline. You can also opt for a penalty-free CD, although the APY may not be as high as a traditional CD with the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account — typically $500 to $1,000. Others don’t. How much money you need to put aside can help narrow down your options.
• Costs: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than brick-and-mortar banks. However, read the fine print for any account you evaluate.
• Federal deposit guarantee: Make sure the bank or credit union you are considering is a member of the FDIC or NCUA so that your money is protected if the bank goes bankrupt.
• Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that is responsive, professional and easy to work with.

Methodology

CNET rates 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.

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.