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Certificate of deposit rates are on the way down, but there’s still time to lock in a great rate and maximize your returns. Today’s best CDs offer annual percentage yields, or APYs, up to 5.30% -- more than three times the national average for some terms. And by opening a CD now, you can protect your earnings from additional rate drops.

Your APY is locked in when you open a CD, so your returns stay the same regardless of where rates go after that. But with rates continuing to slip, the sooner you act, the more you stand to earn.

Today’s best CD rates

Here are some of the highest rates available on today’s best CDs and how much you could earn by depositing $5,000 right now:

TermHighest APYBankEstimated earnings6 months5.30%CommunityWide Federal Credit Union$130.791 year5.15%CommunityWide Federal Credit Union, First Internet Bank of Indiana$257.503 years4.55%NexBank$714.025 years4.35%First Internet Bank of Indiana$1,186.32APYs as of Aug. 20, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

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.

Why now’s the time to open a CD

The Fed regularly adjusts the federal funds rate to stabilize the economy. This rate determines how much it costs banks to borrow and lend money to each other, so banks tend to follow the Fed’s lead.

When the Fed started raising rates in March 2022 to fight rampant inflation, APYs on CDs skyrocketed. As inflation began showing signs of cooling, the Fed held rates steady eight times starting in September 2023, and APYs largely held steady, too.

In recent months, APYs have wavered as banks anticipated a rate cut, which Fed Chair Jerome Powell said “could be on the table at the September meeting.”

Here’s where CD rates are compared to last week:

TermCNET average APYWeekly change*Average FDIC rate6 months4.58%-2.14%1.81%1 year4.68%-0.85%1.85%3 years3.96%-0.75%1.44%5 years3.84%-0.52%1.43%APYs and FDIC average as of Aug. 19, 2024. Based on the banks we track at CNET.*Weekly percentage increase/decrease from Aug. 12, 2024, to Aug. 19, 2024.

After this week’s Consumer Price Index report showed inflation continues to cool, this cut seems even more likely. That means banks are likely to continue dropping rates across CD terms. In other words: The sooner you lock in a high APY, the greater your earning potential could be.

How to find the best CD for you

A competitive APY is important, but there are other things you should consider when comparing CDs to get the best product for your needs:

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 down 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 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.