Protect Your Earnings From Falling APYs With These Top Accounts. Today’s CD Rates, Nov. 21, 2024
- You can earn up to 4.75% APY with today’s top CDs.
- APY is declining and will likely continue to decline in the coming months.
- By opening a CD now, you can lock in today’s high APY and maximize your earning potential.
There’s still time to lock in great rates on CDs. The sooner you act, the more interest you can earn.
Today’s best cd Offers an annual yield of up to 4.75%. APY has been declining since the Fed cut interest rates at its last two meetings, and another cut is likely when it meets again in December. This means APY is likely to continue its downward trend. Fortunately, by opening a CD now, you can lock in a still-high interest rate and protect your income from further cuts.
Here are some of the best CD rates today and what you could earn by depositing $5,000 now:
Today’s Best CD Rates
| semester | Maximum annualized interest rate* | bank | Estimated revenue |
|---|---|---|---|
| 6 months | 4.75% | Bread Savings; Community Federal Credit Union | $117.37 |
| 1 year | 4.50% | community federal credit union | $225.00 |
| 3 years | 4.15% | America’s First Credit Union | $648.69 |
| 5 years | 4.25% | America’s First Credit Union | $1,156.73 |
Why CD rates are falling
The Fed’s actions play an important role in how banks set deposit rates. The federal funds rate determines the cost for banks to lend to each other. When the Fed raises interest rates, banks tend to increase the annual interest rates on consumer products such as CDs savings account Attract new customers and increase their cash reserves. When this rate is lowered, banks tend to lower the annual interest rate.
CD rates have surged in recent years as the Federal Reserve raised the federal funds rate 11 times starting in March 2022 in response to record inflation. The APY for CDs we track at CNET once reached 5.65%.
As inflation shows signs of cooling, the Federal Reserve will pause raising interest rates starting in September 2023. Certificates of deposit rates stabilized before beginning to edge lower as banks anticipate rate cuts later this year. when this September interest rate cut implementedAPY began to decline faster—a trend that has continued since the Fed Rate cut again in November.
Here’s how CD rates looked at the beginning of this week compared to the beginning of last week:
What happened to the latest CD rates last week?
| semester | CNET average APY* last week | CNET average APY* this week | Weekly changes** |
|---|---|---|---|
| 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’s next for CD rates?
After the Fed cut rates at its previous two meetings, experts expect a third rate cut in December. this Latest Consumer Price Index Report Data showed that inflation, which had been cooling for months, rose 2.6% in October. This means the Fed may choose to pause raising interest rates at its next meeting.
“Based on recent inflation data, I don’t expect the Fed to cut rates again in December,” said Faron Daugs, CFP, founder and CEO. Harrison Wallace Financial Group. “They are likely to wait for further confirmation that inflation is under control before making further adjustments.”
This is good news for savers looking to take advantage of high APRs while they last.
Things to consider when choosing a CD
Competitive APY is important when comparing CD accounts, but it’s not the only factor you should focus on. To find the account that’s right for you, also consider the following:
- When you need money: Early withdrawal penalties It will eat into your interest income. So be sure to choose a term that fits your savings schedule. Alternatively, you can choose No penalty CDalthough the APY may not be as high as a traditional CD of the same term.
- Minimum deposit requirements: Some CDs require a minimum amount to open an account, usually $500 to $1,000. Others don’t. How much money you need to set aside can help you narrow down your options.
- cost: Maintenance fees and other expenses eat into your income. many online banking There are no fees because their administrative costs are lower than banks with physical branches. However, please read the fine print of any account you are evaluating.
- Federal Deposit Insurance: Make sure any bank or credit union You are considering becoming an FDIC or NCUA member so your money is protected if the bank fails.
- Customer ratings and reviews: Check out sites like Trustpilot to find out what customers are saying about your bank. You want a bank that is responsive, professional and easy to work with.
methodology
CNET reviews CD rates based on the latest APY information from the issuer’s website. We evaluated CD rates from more than 50 banks, credit unions and finance companies. We evaluate CDs based on APY, 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, First American Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APY as of November 20, 2024, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
**Weekly percentage increase/decrease between November 11, 2024 and November 18, 2024.
