- You can earn up to 4.70% APY with today's best CDs.
- APYs have been falling for months and will likely continue to fall after the Fed's latest rate cut.
- Locking in the APY now can protect your earnings from further rate drops.
A certificate of deposit can be a great place to store cash that you don't need to touch for a while. If you're in the market for a CD, there's no time like the present to open one.
You can still earn up to 4.70% annual percentage return, or APY, with today's premium CDs. That's more than double national average for some terms. APYs have been falling for months, and the The Federal Reserve's latest rate cut means they will probably continue to fall. So the sooner you open a CD, the better rate you can lock in — and the higher your earning potential.
Here are some of the highest CD rates right now and how much you can earn by depositing $5,000.
Today's best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.70% | Rising Bank | $117.50 |
| 1 year | 4.47% | NexBank | $223.50 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
Experts recommend comparing rates before opening a CD account to get the best possible APY. Enter your information below to get the best CNET partner rate for your area.
Why now is the time to open a CD
The days of sky-high CD rates may be gone, but it's still smart to lock in a high APY with one of today's best accounts.
Federal Reserve Bank stocks play a key role in where banks place their CDs and savings account APYs. When the Fed raises the federal funds rate, banks tend to raise the APY on these accounts. When the federal funds rate goes down, banks lower their APYs.
The Fed raised rates 11 times from March 2022 to July 2023 to combat record inflation, and CD rates have soared, reaching 5.65% APY for the banks we track at CNET. Since then, rates have come down significantly, especially after the Fed cut rates at the last three meetings. Today's top APY of 4.70% is still more than double the national average for some terms. With the Fed expected to issue more rate cuts in 2025, locking in a high APY now can protect your income from further rate drops.
How CD rates have changed in the last week
| Term | CNET's average APY last week | This week's CNET Average APY** | Weekly change*** |
|---|---|---|---|
| 6 months | 4.14% | 4.15% | 0.0024 |
| 1 year | 4.07% | 4.08% | 0.24 |
| 3 years | 3.52% | 3.52% | There is no change |
| 5 years | 3.46% | 3.46% | There is no change |
How to choose the best CD for you
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, also consider these things:
- When you need money: Penalties for early withdrawal it can eat into your interest earnings. So be sure to choose a term that fits your savings timeframe. Alternatively, you can choose a CD without penaltyalthough the APY may not be as high as you would 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 overheads than banks with physical branches. However, read the fine print on any account you are evaluating.
- Federal Deposit Insurance: Make sure that a bank or credit union what are you thinking if you are a member of the FDIC or NCUA 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 is responsible, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We've evaluated CD rates from more than 50 banks, credit unions and finance companies. We evaluate CDs based on APY, product offerings, affordability 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, Community Wide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APY as of December 20, 2024, based on the banks we track at CNET. Earnings are based on APY and interest is assumed to compound annually.
**Weekly percentage increase/decrease from December 9, 2024 to December 16, 2024.