The Federal Reserve confirmed on Friday that “the time has come” for an interest rate adjustment. Although he did not specify when the interest rate cuts would begin, comments by Fed Chairman Jerome Powell at the economic symposium support the expectation of a cut as early as the next meeting of the Fed’s Open Market Committee in September.

This means that if you want to maximize your returns with a certificate of deposit, now is the time to act.

Today’s best CDs offer annual percentage yields (APYs) as high as 5.25%. But APYs have been falling for months and have fallen even faster since the Fed hinted at 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 get.

Here you can get one of the highest CD interest rates today.

Today’s best CD rates

These are some of the highest 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.

Why you shouldn’t wait to open a CD

CD interest rates are significantly influenced by the Fed’s decisions. The Fed regularly adjusts the federal funds rate to stabilize the economy, and since that rate determines how much it costs banks to borrow money 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 combat runaway inflation, and APYs on CDs soared. When inflation showed signs of cooling, the Fed kept rates steady eight times starting in September 2023, and APYs also remained largely stable.

Over the past few months, APYs have fluctuated 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 further cooling in inflation, that cut seemed even more likely, and recent Fed statements back that up. As a result, we’ve seen more and more banks lower APYs across CD maturities.

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

“This trend will continue if the market continues to price in falling interest rates for 2024 and 2025,” said Noah Damsky, CFA, principal at Marina Wealth Advisors. “The market expects interest rates to continue to fall, but if this trend accelerates and interest rates are expected to fall more than currently expected, CD rates will fall faster.”

In other words, the sooner you secure a high annual percentage rate, the higher your earnings potential could be.

What should you consider when choosing a CD?

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.