If you are thinking of opening a certificate of deposit, now is the time to do it.

TODAY best CDs offers up to 4.65% annual percentage yield, or APY — more than double the national average for some term. But APYs have fallen since the Federal Reserve cut interest rates at its last three meetings. And with experts expecting more cuts this year, the earlier you open a CD, the higher the APY you can lock in.

“I wouldn’t bet on rates moving higher in the near term, so I would pull the trigger now if fixed income is a priority,” said Noah Damsky, CFA, Principal at Marina Wealth Advisors.

Here are some of the highest CD rates today and how much you can make by depositing $5,000.

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 rates for your area.

Why now is the time to open a CD

CD rates may still be attractive, but the days of high APYs are over. APYs have been falling for months after the series The Federal Reserve’s rate cut. The Fed does not set CD rates directly, but banks tend to move in lockstep with its decisions. When the Fed cuts rates, banks cut APYs on products like CDs and savings accounts and vice versa.

To combat inflation during the COVID era, the Fed has raised rates 11 times starting in March 2022, and CD rates have risen, reaching 5.65% APY for the banks we track at CNET. They have been falling since then, especially in recent months as cooling inflation has caused the Fed to cut rates at its last three meetings. With experts expecting more Fed rate cuts in 2025, locking in one of the best APYs now can protect your income from further declines.

What to look for when comparing CDs

A competitive APY is important, but it’s not the only thing you should consider. To find the right CD for you, also weigh these factors:

• If you need your money: Early withdrawal penalties can eat into your interest income. So be sure to choose a term that fits your savings timeline. Alternatively, you can choose a CD without penaltyalthough the APY may not be as high as you would get on a traditional CD over the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account – typically, $500 to $1,000. Some don’t. How much money you have to spare will help you narrow down your options.
• Fee: Maintenance and other fees can eat into your income. many online banks do not charge fees as overhead costs are lower than banks with physical branches. However, read the fine print for any account you are evaluating.
• Federal deposit insurance: Make sure any bank or credit union you consider becoming a member of the FDIC or NCUA to protect your money 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 responsive, professional and easy to work with.

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CNET checked 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.

Current banks included in CNET’s weekly CD average 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, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.

*APYs as of January 14, 2025, based on banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

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