Ensuring your money works for you is key to any sound financial plan. One way to do that is by maximizing your interest-earning potential with a certificate of deposit. A CD is a low-risk way to earn a guaranteed return for a specific time period, or term, and the best rates still top 5% annual percentage yield, or APY.
CD rates are on the way down, but you can still lock in a competitive rate for the entire term. So even if rates fall, your rate won’t change until your CD matures. If you have some cash sitting in a low-yielding account and you can afford to set it aside for a specific period, now’s the time to open a CD.
For example, if you have $2,000 to deposit, let’s take a look at how much you could earn by investing in one of the top-yielding CDs: CommunityWide Federal Credit Union’s one-year CD.
Here’s how much you could earn by depositing $2,000 into CommunityWide Federal Credit Union’s 1-year CD
If you deposit $2,000 in CommunityWide Federal Credit Union’s one-year CD — which has one of the highest APYs available right now at 5.00% APY — you’ll earn $100 when your CD term ends. But keep in mind that your return will vary depending on how much money you deposit and the length of the term.
Other deposit amounts
Here are a few more examples should you deposit more or less than $2,000 in CommunityWide Federal Credit Union’s one-year CD. (Note: CommunityWide Federal Credit Union’s minimum deposit requirement is $1,000 for all its CD terms.)
| CD term | Amount deposited | APY | Interest earned | Balance at maturity |
| 1-year | $500 | 5.00% | $25.00 | $525.00 |
| 1-year | $1,000 | 5.00% | $50.00 | $1,050.00 |
| 1-year | $2,000 | 5.00% | $100.00 | $2,1060.00 |
| 1-year | $5,000 | 5.00% | $250.00 | $5,250.00 |
| 1-year | $10,000 | 5.00% | $500.00 | $10,500.00 |
APYs as of Sept. 19, 2024.
Other CD terms
CommunityWide Federal Credit Union offers five longer-term CDs, including an 18-month, 36-month and 60-month CD. Here’s how much you could earn in each if you deposit $2,000:
| CD Term | Amount deposited | APY | Interest earned | Balance at maturity |
| 18 month | $2,000 | 4.50% | $136.51 | $2,136.51 |
| 24 months | $2,000 | 4.25% | $173.61 | $2,173.61 |
| 36 month | $2,000 | 4.00% | $249.73 | $2,249.73 |
| 48 months | $2,000 | 3.80% | $321.77 | $2,321.77 |
| 60 month | $2,000 | 3.60% | $386.87 | $2,386.87 |
APYs as of Sept. 19, 2024.
Other high-interest CDs to consider
CDs offer benefits in any rate environment. However, today’s top CD rates are likely the highest they’ll be all year, but you can still secure a high APY and protect your earnings from future rate changes. If you have money earmarked for a specific goal that you won’t need access to for a few months or years, now’s the time to lock in a high rate.
Here are a few other high-interest CDs to consider. We’ve listed how much you’d earn when the CD matures if you deposit $2,000:
| Term | Highest APY | Bank | Interest Earned | Balance at maturity |
| 1-year | 4.91% | Connexus Credit Union | $98.20 | $2,098.20 |
| 1-year | 4.90% | Limelight Bank | $98.00 | $2,098.00 |
| 1-year | 4.90% | Bask Bank | $98.00 | $2,098.00 |
| 1-year | 4.80% | America First Credit Union | $96.00 | $2,096.00 |
APYs as of Sept. 19, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
How to choose the right CD for you
When you’re ready to open a CD, you should look at more than just the APY. Here are a few factors you should consider when comparing CD accounts:
Are CDs still worth the hype?
CD rates have steadily increased since March 2022 as the Federal Reserve raised the benchmark federal funds rate to fight record inflation. When the Fed raises this rate, banks tend to follow suit to remain competitive and boost their cash flow. As a result, savers have been able to enjoy high rates on consumer products like CDs and savings accounts. At one point, the top CD rates we track at CNET were as high as 5.65% APY for select terms.
However, after 11 rate hikes, the Fed paused interest rate increases in July 2023 as inflation started to show signs of cooling, and it’s held them steady since. In response, CD rates started to plateau and have trended downward since the fourth quarter of 2023.
With the latest Consumer Price Index Report showing inflation is nearing the Fed’s 2% target, experts predicted a cut at the Fed’s Sept. 17-18 meeting — a prediction that proved true. As a result, APYs — which have been falling more rapidly in recent weeks as banks anticipated a cut — are likely to fall further.
However, since your rate is locked in when you open a CD, opening a CD can protect your earnings against future rate drops.
