The Federal Reserve confirmed it on Friday: “The time has come” for an interest rate adjustment. While he didn’t specify when rate cuts will begin, Chairman Jerome Powell’s comments at the Fed’s economic symposium support expectations of a cut as soon as the next Federal Open Market Committee Meeting in September.

That means if you want to maximize your earnings with a certificate of deposit, now’s the time to act.

Today’s best CDs offer annual percentage yields, or APYs, as high as 5.25%. But APYs have been slipping for months, and they’ve fallen faster since the Fed teased a September rate cut at its July FOMC meeting. So, the longer you wait to open a CD, the lower the APY you may be able to lock in.

Here’s where you can score one of the highest CD rates today.

Today’s best CD rates

These 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 months5.25%CommunityWide Federal Credit Union$129.571 year5.05%America First Credit Union; Internet Bank of Indiana$252.503 years4.40%MYSB Direct$689.475 years4.24%First Internet Bank of Indiana$1,153.78APYs as of Aug. 26, 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 you shouldn’t wait to open a CD

CD rates are significantly affected by the Fed’s decisions. The Fed regularly adjusts the federal funds rate to stabilize the economy, and since this rate determines how much it costs banks to borrow and lend money to each other, they tend to follow the Fed’s lead.

The Fed raised rates 11 times starting in March 2022 to fight rampant inflation, and 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 wavered as banks anticipated a rate cut, which Fed Chair Jerome Powell said “could be on the table at the September meeting.” After this month’s Consumer Price Index report showed inflation continuing to cool, this cut seemed even more likely, and the Fed’s latest statements support this. As a result, we’ve seen more and more banks slashing APYs across CD terms.

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

TermCNET average APYWeekly change*Average FDIC rate6 months4.56%-0.44%1.82%1 year4.66%-0.43%1.85%3 years3.89%-1.77%1.44%5 years3.77%-1.82%1.42%APYs and FDIC average as of Aug. 26, 2024. Based on the banks we track at CNET.*Weekly percentage increase/decrease from Aug. 19, 2024, to Aug. 26, 2024.

“This trend will continue if the market continues to price in declining interest rates in 2024 and 2025,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors. “The market is expecting rates to continue to fall, but if that trend accelerates and rates are forecast to decline further than current expectations, then CD rates will fall faster.”

In other words: The sooner you secure a high APY, the greater your earning potential could be.

What to consider when choosing a CD

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.