Make sure the CD you choose offers a term that fits your timeline. “I am recommending these for my community who are working on saving for things like future vacations, down payments and other goals.” It’s long enough to give people some meaningful earnings in interest but not so long that they don’t miss out on future opportunities,” said Bernadette Joy, a personal finance coach and CNET expert review board member. “Short-term CDs are better right now, particularly 10- to 12-month CDs since they are offering the most competitive rates. If a short-term CD fits your money goals, experts recommend locking in a high rate now, before rates start falling. But in today’s high-rate environment, short-term CDs like six-month and one-year terms are offering higher rates than long-term CDs. A five-year CD usually offers the best rate since you’re agreeing to lock your money up for a longer time. In general, longer CD terms (over one year) have better APYs than shorter ones (one year and under). If your bank compounds interest more frequently, you may earn slightly more. Earnings are based on APYs and assume interest is compounded annually. 6, 2023, based on the banks we track at CNET.
Here’s a look at some of the best CD rates available right now and how much you could earn if you deposited $5,000 today.