The clock is ticking on high deposit rates. After months of gradually declining rates, we have seen an acceleration of that pace in the past week as banks expect a rate cut by the Federal Reserve in the near future due to recession fears and stock market panic.

Fortunately, a CD is a great way to protect your money from economic turmoil. The best CD rates currently sit above 5% annual interest rate, or APY. And by opening a CD today, you can lock in your APY and protect your earnings from further rate cuts.

If you’re ready to maximize your returns, here are the best APYs available today.

Today’s best CD rates

Here are some of the best interest rates currently available on the best CDs and how much you could earn if you deposit $5,000 now:

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

What influences CD rates?

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

When the Fed began raising rates in March 2022 to combat runaway inflation, APYs on CDs shot up. When inflation showed signs of cooling, the Fed kept rates stable eight times starting in September 2023, and APYs also remained largely stable.

APYs have been fluctuating over the past few months as banks anticipated a rate cut, which Fed Chair Jerome Powell said “could be on the table at the September meeting.” But after a dismal July jobs report, some economists are calling for the Fed to make an emergency rate cut sooner, and we’re seeing APY cuts accelerate.

Why now is the time to open a CD

Here you can see the CD rates compared to last week:

The sooner you lock in a high APR, the higher your earning potential could be – especially if you’re looking for a short-term CD.

“Rate cuts in September will have an immediate impact on the shortest-term CD rates,” said Noah Damsky, CFA, principal at Marina Wealth Advisors. “So if you need to lock up cash for three to 12 months, you should act as soon as possible.”

In general, rates on short-term CDs are currently higher than on long-term ones. However, rates decline over the term, so whatever rate you get today will likely be the best rate you’ll find for that term for a while.

“Currently, CD rates are holding up quite well, although shorter maturities offer slightly higher yields,” said Faron Daugs, CFP, founder and CEO of Harrison Wallace Financial Group. “This is consistent with expectations that rates will decline over the next year and a half. The key is to match the maturity of your CDs to your potential capital needs. If stability is your priority, it might be wise to lock in a slightly lower rate for a longer period of time.”

How to choose the right CD for you

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

• When you need your money: Penalties for early withdrawals can reduce your interest earnings, so be sure to choose a term that fits your savings plan. Alternatively, you can choose a CD with no penalties, although the APR may not be as high as a traditional CD with the same term.
• Minimum deposit: Some CDs require a minimum amount to open an account—typically $500 to $1,000. Others don’t. Knowing how much money you need to set aside can help you narrow down your options.
• Fees: Account 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 on any account you’re considering.
• Nationwide deposit protection: Make sure the bank or credit union you are considering is a member of the FDIC or NCUA so your money is protected in the event of the bank’s bankruptcy.
• 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 hassle-free.

methodology

CNET reviews CD rates based on the latest APY information from issuers’ websites. We’ve evaluated CD rates from more than 50 banks, credit unions and financial companies. We rate 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.