Don’t miss your chance to score an APY up to 4.75%. CD rates today, November 19, 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.
- Opening a CD now can lock in a high APY and protect your earnings from future interest rate cuts.
Interest rates on certificates of deposit may fall, but you can still enjoy great returns if you act now.
Today’s best CDs offer annualized yields, or APYs, as high as 4.75% – more than double the national average for some terms. But APYs have fallen since the Federal Reserve cut rates at its last two meetings. And with another rate cut possible in December, now is the time to open a CD and lock in a high APY while you still can. The longer you wait, the lower your earning potential may be.
Read on to see where you can score one of the highest CD rates today.
These 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 |
| 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
Where CD rates go depends in large part on the Fed’s decision at its December meeting. The Federal Funds Rate determines how much it costs banks to lend and borrow money from 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 materialized in September, APYs began to decline at a faster rate – a trend that has continued since the Fed cut rates again in November.
Here’s where CD rates stand at the beginning of this week compared to the beginning of last week:
This is where the CD rates are
| 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 |
After the Fed’s rate cuts at the last two meetings, experts expected a third cut in December. But the latest consumer price index report showed 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.
“Although inflation is moving in the right direction, the Fed is leaning toward taking a cautious approach, so they will likely hold off on rate cuts until they have more confidence that inflation is under control without unduly impacting economic growth ” said Taylor. Kovar, CEO of 11 Financial.
This is good news for savers who want to take advantage of high APYs while they still exist.
Pay attention to these things 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 that any bank or credit union you are considering is a member of the Federal Deposit Insurance Corporation or the National Credit Union Administration so that your money is protected if the bank fails.
- 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 and FDIC averages as of November 18, 2024. Based on the banks we track at CNET. Weekly percentage increase/decrease from November 11 to November 18, 2024.
