Protect your earnings from declining APYs with these top accounts. CD rates today, November 21, 2024
- You can earn up to 4.75% APY on today’s best CDs.
- APYs are declining and will likely continue to decline in the coming months.
- By opening a CD now, you can keep today’s high APYs and maximize your earning potential.
There’s still time to lock in a great rate on a certificate of deposit. The sooner you act, the more interest you can earn.
Today’s best CDs offer annual returns of up to 4.75%. APYs have fallen since the Federal Reserve cut rates at its last two meetings, and another cut is possible when the Federal Reserve meets again in December. That means APYs are likely to continue their downward trend. Fortunately, by opening a CD now, you can lock in a still-high rate and protect your income from further cuts.
Here are some of today’s highest CD rates and how much you can earn by depositing $5,000 now:
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated income |
|---|---|---|---|
| 6 months | 4.75% | Bread saving; Community-wide federal credit union | $117.37 |
| 1 year | 4.50% | Community-wide federal credit union | $225.00 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
Why CD rates are falling
The Fed’s actions play a large role in how banks set their CD rates. The Federal Funds Rate determines how much it costs banks to borrow and lend money to each other. When the Fed raises this rate, banks tend to increase their APYs on consumer products such as CDs and savings accounts to attract new customers and increase their cash reserves. When interest rates are cut, banks tend to lower their APYs.
CD rates have skyrocketed in recent years as the Fed raised the federal funds rate 11 times starting in March 2022 to combat record inflation. At one point, the APYs for the CDs we track at CNET reached 5.65%.
As inflation showed signs of cooling, the Fed began suspending interest rates from September 2023. CD rates remained stable and then began to decline slightly as banks expected rates to be cut later this year. When this rate cut became a reality in September, APYs began to decline more rapidly – a trend that has continued since the Fed cut rates again in November.
Here were the CD rates at the beginning of this week compared to the beginning of last week:
How the latest CD rates have changed in the past week
| Term | CNET average APY from last week* | This week’s CNET average APY* | Weekly change** |
|---|---|---|---|
| 6 months | 4.20% | 4.21% | $0.00 |
| 1 year | 4.10% | 4.09% | -0.24% |
| 3 years | 3.55% | 3.55% | No change |
| 5 years | 3.47% | 3.48% | $0.00 |
What are the current CD rates?
After the Fed’s rate cuts at the last two meetings, experts expected a third cut in December. The latest consumer price index report shows that inflation, which had been cooling for months, rose 2.6% in October. That means the Fed could choose to pause interest rates at its next meeting.
“Based on recent inflation data, I don’t expect the Federal Reserve to cut rates again in December,” said Faron Daugs, CFP, founder and CEO of Harrison Wallace Financial Group. “It is likely that they will wait for additional confirmation that inflation is under control before making further adjustments.”
This is good news for savers who want to take advantage of high APYs while they still exist.
What you should pay attention to when choosing a CD
A competitive APY is important when comparing CD accounts, but it’s not the only thing you should look at. Also consider the following to find the right account for you:
- When you need your money: Early withdrawal penalties can eat into your interest income. So make sure you 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 a traditional CD with the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account – typically $500 to $1,000. Others don’t. How much money you need to put aside can help you narrow down your options.
- Costs: Maintenance and other costs can negatively impact your income. Many online banks do not charge fees because they have lower overhead costs than banks with physical branches. However, read the fine print of any account you evaluate.
- Federal deposit insurance: Make sure any bank or credit union you are considering is a member of the FDIC or NCUA so your money is protected if the bank goes bankrupt.
- 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.
Methodology
CNET rates CD rates based on the latest APY information from publisher websites. We evaluated the CD rates of more than 50 banks, credit unions and financial companies. We rate CDs based on APYs, product offerings, accessibility, and customer service.
Current banks included in CNET’s weekly CD averages 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 November 20, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest increases annually.
**Weekly percentage increase/decrease from November 11, 2024 to November 18, 2024.
