Best CD Rates Today, Jan.  18, 2024: Rates Stay High, But Won’t Last Forever

Best CD Rates Today, Jan. 18, 2024: Rates Stay High, But Won’t Last Forever

A CD allows you to lock in a fixed rate of return for the duration of the CD, protecting you if interest rates decline.

Steve Goodwin
Managing director of consumer banking at JPMorgan Chase

A certificate of deposit allows you to lock in an annual percentage yield, or APY, to earn a fixed rate of interest on your savings, in exchange for locking in your money for a period of time. at the time. And for now, rates for CDs remain high but some banks have dropped slightly.

“We’ve experienced a volatile rate environment recently, with rates on savings and CDs fluctuating throughout the day,” said Steve Goodman, managing director of consumer banking at JPMorgan Chase.

Accumulate money

Zooey Liao/CNET

Some banks offer APYs up to 5.5% depending on the term of the CD. That’s higher than the national average, which hovers between 0.23% and 1.86% for average CD terms. Since most experts believe that CD rates are as good as they get, the best time to open a CD is now.

Key takeaways

  • 6 month and 1 year CDs offer up to 5.50% APY

  • 3-year and 5-year CDs offer 4.65% APY and higher

  • Experts recommend locking in a CD as soon as possible, before prices start to skyrocket

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.

The best CD rates today

Here are some of the top CD rates available today and how much you could make if you deposited $5,000 today:

*APYs as of January 18, 2024, based on banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

CD rates do not remain high throughout the year

CD rates have risen steadily over the past two years in response to the Federal Reserve regularly raising the federal funds rate. When the Fed raises the federal funds rate, banks often follow suit, raising interest rates on consumer products like credit cards, savings accounts and CDs.

The end of 2023 saw three consecutive rate hikes from the Fed, and CD rates rose as a result.

That means banks are unlikely to push rates higher. And some banks have even begun quietly lowering rates. Here’s where APYs stand compared to last week:

TERMS CNET average APY* Weekly change** Average FDIC rate
6 months 4.90% -0.40% 1.49%
1 year 5.15% -0.57% 1.86%
3 years 4.24% 0.47% 1.41%
5 years 4.02% 0.49% 1.40%
*APYs as of January 18, 2024. Based on banks we track at CNET.
**Percentage increase/decrease from Jan. 8, 2024, to Jan. 17, 2024.

From week to week, the change in average prices is not very unusual. But if you look at where the rates are now compared to last month, you will see that the earning potential has decreased significantly.

TERMS Highest APY in Dec. 4, 2023 Highest APY in Jan. 3, 2024 Change monthly
6 months 5.55% 5.50% -0.90%
1 year 5.75% 5.55% -3.48%
3 years 5.10% 4.85% -4.90%
5 years 5.25% 4.75% -9.52%
Based on the banks we track at CNET.

Experts expect the Fed to start lowering rates in mid to late 2024, which means CD rates will fall further. Since CD rates are fixed when you open the account, opening a CD now ensures you’ll enjoy the same high income even if rates drop.

“In terms of when is the right time to open a CD, there is no right or wrong answer or exact moment – a CD allows you to lock in a certain rate to return the duration of the CD, protecting you when interest rates go down,” Goodman said.

Why a CD is worth considering

A fixed rate of return (especially if prices fall) is not the only benefit of opening a CD today. CDs held by banks that are members of the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration are protected by federal deposit insurance up to $250,000 per person, per institution in the event of bank failure. This makes them a low-risk way to grow your savings.

Additionally, most banks charge a fee if you withdraw money before the CD matures. This can eat into your income and give you pause if you’re thinking of tapping your funds before you need them.

Things to consider before opening the CD

In addition to a competitive APY, you should also keep these factors in mind before opening a CD in any rate environment:

  • How quickly you need the funds: Early withdrawal penalties can wipe out your interest earnings. So be sure to choose a term that fits your savings timeline.

  • Minimum deposit requirement: Some CDs require a certain amount to open an account – typically, $500 to $1,000. Some have no minimum deposit requirement. How much money you should deposit will help you narrow down your account options.

  • Fee: Charges can destroy your balance. Many online banks do not charge maintenance fees. They have lower overhead costs than banks with physical branches, and they pass these savings on to consumers through higher fees and lower fees. However, be sure to read the fine print for any account you are considering.

  • Federal deposit insurance: Confirm that any institution you are considering is a member of the FDIC or NCUA to ensure your money is protected in the event of a bank failure.

  • Customer ratings and reviews: Read what customers are saying about the bank you’re considering on sites like Trustpilot to make sure the bank is responsive, professional and easy to work with.


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 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.

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