There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (2024)

Money Banking

Article updated on Aug 05, 2024

Some banks are already lowering rates, but you can earn up to 5.35% APY with the best CDs if you move quickly.

Why You Can Trust CNET Money

Our mission is to help you make informed financial decisions, and we hold ourselves to strict. This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .

Our Experts

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (1) There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (2)

Written by

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (3)

Dashia Milden

Editor

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

See full bio

Edited by

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

Reviews ethics statement

Our Experts

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (5) There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (6)

Written by

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (7)

Dashia Milden

Editor

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

See full bio

Edited by

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (8)

Tiffany Connors

Editor

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

Reviews ethics statement

Why You Can Trust CNET Money

Our mission is to help you make informed financial decisions, and we hold ourselves to strict. This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .

Table of Contents

  • Today’s best CD rates
  • Is now the time to lock in a CD?
  • How to choose the right CD account
  • Methodology
There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (9)

Key Takeaways

  • You can earn up to 5.35% APY for a one-year CD.
  • APYs will likely stay high for a while longer, but some banks are lowering rates for select terms.
  • Experts anticipate rate cuts later this year, so the sooner you lock in a great APY, the higher your earning potential.

There’s a good chance that the Federal Reserve will finally cut interest rates next month after it raised them to a 20-year high a year ago. But don’t wait for the Fed to act if you want to rack up interest on your savings.
Some CD rates have already slipped in the last few weeks for a few terms, but you can still find an annual percentage yield as high as 5.35% for a one-year CD and 4.5% for a five-year term. Rates will likely only fall from here, so now’s the time to act.

Here’s the latest on CD rates and what to expect next.

Today’s best CD rates

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

TermHighest APYBankEstimated earnings
6 months5.30%Bask Bank, CommunityWide Federal Credit Union$130.79
1 year5.35%NexBank$267.50
3 years4.55%MYSB Direct, NexBank$714.02
5 years4.45%BMO Alto$1,216.02

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.

Is now the time to lock in a CD?

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

We saw banks push interest rates higher when the Fed raised rates. When the Fed held rates steady, some banks held rates steady for weeks while others quietly lowered select terms.

Fed Chair Jerome Powell said a “rate cut could be on the table at the September meeting,” meaning now’s the time to lock in a competitive rate. Once the Fed makes moves to drop rates, CD rates will likely drop, too.

So, the sooner you lock in a high APY, the greater your earning potential could be.

“Since rates are high, locking in now could be a smart move,” said Bola Sokunbi, a CNET Money expert review board member and founder of Clever Girl Finance.

Which CD should you choose? Short-term rates for certificates of deposit will let you have access to your money sooner, while a long-term CD lets you lock in a fixed rate for a guaranteed return. Sokunbi recommends investing in a combination of both through CD laddering, which helps spread out your risk and optimize returns.

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

TermCNET average APYWeekly change*Average FDIC rate
6 months4.68%No change1.81%
1 year4.89%-0.41%1.85%
3 years4.08%-0.73%1.44%
5 years3.94%-1.00%1.43%

How to choose the right CD account

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.

Recommended Articles

Best CD Rates for August 2024

Best CD Rates for August 2024

By David McMillin

Savings and CD Rates Won’t Go Much Higher, Experts Say. Here’s What That Means for Your Money

Savings and CD Rates Won’t Go Much Higher, Experts Say. Here’s What That Means for Your Money

By Kelly Ernst

The Fed Rate Pause Is Great for Savers. Here’s How

The Fed Rate Pause Is Great for Savers. Here’s How

By Toni Husbands

My CD Is About to Mature. What Should I Do With the Money?

My CD Is About to Mature. What Should I Do With the Money?

By Emma Woodward

Best No-Penalty CD Rates for August 2024

Best No-Penalty CD Rates for August 2024

By Dashia Milden

The Magic of Compound Interest Is Helping Double My Savings in One Year

The Magic of Compound Interest Is Helping Double My Savings in One Year

By Liliana Hall

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (10)

Written by

Dashia Milden

Editor

Read more from Dashia

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024 (2024)

FAQs

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024? ›

There's Still Time to Lock in the Best CD Rates, but Not for Much Longer, Aug. 5, 2024. Some banks are already lowering rates, but you can earn up to 5.35% APY with the best CDs if you move quickly. Our mission is to help you make informed financial decisions, and we hold ourselves to strict editorial guidelines .

What are CD rates going to do in 2024? ›

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

Should I close a CD early to get a better rate? ›

Paying an early withdrawal penalty could also make sense if your CD is earning considerably less than current interest rates. For example, if you have a long-term CD earning a 2% APY, and new CDs offer APYs in the 5% range, you should consider cashing out your long-term CD as it could mean earning 3% more on your cash.

Should you lock in a CD now? ›

"Plus, with the interest rate cut talk, if rates are lowered, you'll be glad to have locked in a higher rate," he says. CDs also work better in some situations than others, mostly because money deposited in a CD typically cannot be accessed before maturity without an early withdrawal penalty.

Can you get 6% on a CD? ›

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

What are CD rates expected to be in 2025? ›

But all told, it's pretty fair to assume that there will still be opportunities to lock in a CD at close to 5% at the start of 2025. And there's a good chance you'll be able to open a CD at a rate of 4% or more for a good part of the year.

What is the best CD rate for $100,000? ›

Best Jumbo CD Rates for August 2024
BEST NATIONAL JUMBO CDs
EFCU Financial4.85% APY$100,000
Luana Savings Bank4.70% APY$100,000
Lafayette Federal Credit Union4.58% APY$100,000
Best non-Jumbo option: Vibrant Credit Union5.00% APY$5
46 more rows

What is the biggest negative of putting your money in a CD? ›

1. Early withdrawal penalty. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. They typically have to pay a penalty for early withdrawals, which can eat up interest and can even result in the loss of principal.

Do you lose principal if you close a CD early? ›

If you make a withdrawal three months after you opened the CD, you'll forfeit all of the interest you've earned and pay the rest of the fee out of the principal you deposited.

How long will CD rates stay high? ›

If you're looking for a safe place to store your savings—and earn a competitive rate so your money can grow faster—it's hard to beat a CD. Interest rates are the highest in about a decade and will likely stay elevated through 2024.

What is a good CD rate right now? ›

Best CD Rates Today
InstitutionRate (APY)Term
DR Bank5.35%6 months
Climate First Bank5.34%6 months
Communitywide Federal Credit Union5.30%6 months
West Town Bank & Trust5.30%13 months
11 more rows

Are CDs safe if the market crashes? ›

Are CDs safe if the market crashes? Putting your money in a CD doesn't involve putting your money in the stock market. Instead, it's in a financial institution, like a bank or credit union. So, in the event of a market crash, your CD account will not be impacted or lose value.

Can you lose on a CD? ›

Losing money in a CD is highly unlikely. However, it's not impossible. If you're thinking about opening one, read the fine print about early withdrawal penalties, and be sure to compare more flexible options that don't have a maturity date. And even if you decide to open a CD, don't set it and forget it.

Why should you put $5000 in a 6 month CD now? ›

While longer-term CDs may tie up your funds for years, a 6-month CD allows you to access your money relatively quickly. If you suddenly need your $5,000 for an emergency or a more lucrative investment opportunity arises, you won't have to wait years to access your funds without incurring hefty penalties.

Will CD rates go up in 2024? ›

CD rate forecast: 2024

The Fed kept its rate the same after its fifth meeting of 2024 on July 30-31. Projections suggest that we'll see no rate increases in 2024, and that the Fed will likely drop its rate for the first time this year in September, according to the CME FedWatch Tool on July 31.

What bank is paying 5% on CDs? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
E-Trade Bank5.00%12 months
Marcus by Goldman Sachs5.00%12 months
LendingClub Bank5.00%18 months
Morgan Stanley5.00%3 months
31 more rows

What is the predicted interest rate for 2024? ›

The July Housing Forecast from Fannie Mae puts the average 30-year fixed rate at 6.7% by year-end, a slight decline from an average of 6.8% in the third quarter. All told, the mortgage giant predicts mortgage rates will average 6.8% in 2024 and 6.4% in 2025.

Will interest rates go down in 2024? ›

The next cash rate decision is on 24 September 2024. Official interest rates will come down when inflation reaches the RBA target band of 2% to 3%, most likely in late 2024 to early 2025. Inflation is broadly tracking with the RBA's CPI forecast.

What is the money market forecast for 2024? ›

The national average rate for savings accounts will be 0.3 percent by the end of 2024, McBride forecasts, while predicting an average of 0.35 percent for money market accounts. At the end of 2024, the top-yielding nationally available money market account and savings account are projected to be at 4.45 percent APY.

What is the interest rate prediction for 2025? ›

While 2026 is expected to be on a par with 2025, at 1.0%. The interest rate peaked at 5.25% in 2023 and is expected to be cut to 4.75% by the end of 2024. It is expected to be cut to 4.35% by the end of 2025 and then to 3.95% at the end of 2026. This is still well above the average for the previous decade.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Patricia Veum II

Last Updated:

Views: 5950

Rating: 4.3 / 5 (64 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Patricia Veum II

Birthday: 1994-12-16

Address: 2064 Little Summit, Goldieton, MS 97651-0862

Phone: +6873952696715

Job: Principal Officer

Hobby: Rafting, Cabaret, Candle making, Jigsaw puzzles, Inline skating, Magic, Graffiti

Introduction: My name is Patricia Veum II, I am a vast, combative, smiling, famous, inexpensive, zealous, sparkling person who loves writing and wants to share my knowledge and understanding with you.