Lock in a high APY while you still can. CD rates today, December 13, 2024
- You can earn up to 4.70% APY on today’s best CDs.
- Your APY is locked when you open a CD.
- With APYs on their way out, opening a CD today can maximize your earning potential.
The days of sky-high deposit rates may be over, but you can still make great returns with today’s best CDs – if you act now.
Annual percentage rates, or APYs, on CDs have fallen since the Federal Reserve cut rates at its last two meetings. But you can still earn up to 4.70% APY by choosing the right CD. That’s more than twice the national average for some terms. And since your APY is set when you open a CD, your returns will remain the same even if overall CD rates continue to decline – which is likely if the Fed cuts rates again next week, as many experts believe will happen.
Here are some of the highest CD rates today, based on the banks we track at CNET, and how much you could make by depositing $5,000.
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated income |
|---|---|---|---|
| 6 months | 4.70% | Emerging bank | $117.50 |
| 1 year | 4.47% | NexBank | $223.50 |
| 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 does not directly set CD rates, but it does control the federal funds rate. The Federal Funds Rate is the overnight interest rate that banks charge each other to borrow money. When the federal funds rate falls, rates on consumer products like CDs and savings accounts usually follow suit.
Following the Fed’s post-pandemic rate hikes, CD rates rose above the 5% APY for six- to 18-month terms that we track at CNET. But since the beginning of this year, CD and savings rates have slowly fallen.
The Fed cut rates in September, the first rate cut since March 2020. Since then, CD and savings rates have fallen faster. At the beginning of 2024, the average APY on six-month CD was 4.92%, but after the September rate cut it had fallen to 4.38%. This week it is 4.14%.
Here were the CD rates at the beginning of this week compared to the beginning of last week:
How CD rates have changed in the past week
| Term | Last week’s CNET average APY | This week’s CNET average APY** | Weekly change*** |
|---|---|---|---|
| 6 months | 4.15% | 4.14% | -0.24% |
| 1 year | 4.07% | 4.07% | No change |
| 3 years | 3.53% | 3.52% | -0.28% |
| 5 years | 3.46% | 3.46% | No change |
CD rates could fall further if the Fed were to cut rates again on December 18. At this point, experts say it’s likely the Fed will cut rates again this month, despite the latest Consumer Price Index report showing inflation is still rising.
Why you should open a CD now
If you’re working to grow your savings, there’s still time to earn an attractive APY. If you have already saved money that you do not need to invest in in the coming years, you can now secure a high, guaranteed return with a CD.
“CDs are a good, stable way to earn predictable returns while controlling the amount of time you don’t have access to your money,” says Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert at BadCredit.org. “Rates are still historically high.”
If you need immediate access to your money, you can also earn a competitive rate with a high-yield savings account. HYSAs are better suited for things like your emergency fund because you can withdraw cash at any time without penalty.
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 December 13, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest increases annually.
**Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.
