- You can earn up to 4.70% APY with today's best CDs.
- Your APY is locked in when you open a CD.
- With APYs on the way down, opening a CD today can maximize your earning potential.
The days of sky-high certificate of deposit rates may be over, but you can still earn a great return with today's top CDs -- if you act now.
Annual percentage yields, or APYs, on CDs have been falling since the Federal Reserve cut interest rates at its last two meetings. But you can still earn up to 4.70% APY by choosing the right CD. That's more than twice the national average for some terms. And since your APY is set when you open a CD, your returns will stay the same even if overall CD rates keep falling -- which is likely if the Fed cuts rates again next week, as many experts believe it will.
Here are some of the highest CD rates right now, based on banks we track at CNET, and how much you could earn by depositing $5,000.
Today's best CD rates
| Highest APY* | Bank | Estimated earnings |
| 4.70% | Rising Bank | $117.50 |
| 4.47% | NexBank | $223.50 |
| 4.15% | America First Credit Union | $648.69 |
| 4.25% | America First Credit Union | $1,156.73 |
Why CD rates are falling
The Fed doesn't directly set CD rates, but it does control the federal funds rate. The federal funds rate is the overnight lending rate banks charge one another to borrow funds. When the federal funds rate goes down, rates on consumer products like CDs and savings accounts tend to follow.
Following the Fed's post-pandemic rate hikes, CD rates soared above 5% APY for six- to 18-month terms we track at CNET. But since the beginning of this year, CD and savings rates have been slowly decreasing.
The Fed cut rates in September, its first rate cut since March 2020. Since then, CD and savings rates have fallen faster. At the start of 2024, the average APY on six-month CD was 4.92%, but following September's rate cut, it was down to 4.38%. This week, it's 4.14%.
Here's where CD rates stood at the start of this week compared to the start of last week:
How CD rates have changed in the last week
| Last week's CNET average APY | This week's CNET average APY** | Weekly change*** |
| 4.15% | 4.14% | -0.24% |
| 4.07% | 4.07% | No change |
| 3.53% | 3.52% | -0.28% |
| 3.46% | 3.46% | No change |
CD rates could drop further if the Fed makes another rate cut on Dec. 18. Right now, experts say it's likely that the Fed will cut rates again this month despite the latest Consumer Price Index report showing inflation is still rising.
Why you should open a CD now
If you're working on growing your savings, there's still time to earn an attractive APY. If you already have money saved that you won't need to dip into for a few years, you can lock in a high, guaranteed return with a CD now.
"CDs are a good, steady way to get a predictable return while controlling the amount of time you don't have access to your money," said Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert with BadCredit.org. "Rates are still high on a historical basis."
If you need ready access to your money, you can also earn a competitive rate with a high-yield savings account. HYSAs are better suited for things like your emergency fund because you can take out cash at any time without penalty.
Things to consider when choosing a CD
A competitive APY is important when comparing CD accounts, but it's not the only thing you should look at. To find the right account for you, consider these things, too:
- 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 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 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.
*APYs as of Dec. 12, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Dec. 2, 2024, to Dec. 9, 2024.
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