Lock In a High APY While You Still Can. Today’s CD Rates, Dec. 13, 2024
- You can earn up to 4.70% APY with today’s best CDs.
- When you open the CD, your APY is locked.
- With APYs continuing to drop, open a CD today to maximize your earning potential.
The days of sky-high CD rates may be over, but you can still earn great returns with today’s rates Top CD – If you act now.
The annual yield (APY) on CDs has been declining since the Fed cut interest rates at its last two meetings. But by choosing the right CD, you can still earn up to 4.70% APY. In some ways, that’s more than double the national average. Since your APY is set when you open your CD, your returns will remain the same even if overall CD rates continue to fall – which is likely to happen if the Fed cuts rates again next week, as many experts believe it will .
Here are the top CD rates right now, and how much you can earn by depositing $5,000, according to the banks we track at CNET.
Today’s Best CD Rates
| semester | Maximum annualized interest rate* | bank | Estimated revenue |
|---|---|---|---|
| 6 months | 4.70% | rise bank | $117.50 |
| 1 year | 4.47% | Nicks Bank | $223.50 |
| 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 does not directly set deposit rates, but it does control the federal funds rate. The federal funds rate is the overnight lending rate that banks charge each other to borrow funds. When the federal funds rate falls, interest rates on consumer products such as CDs fall. savings account tend to follow.
After the Federal Reserve raised interest rates in the wake of the pandemic, CD rates for maturities between 6 and 18 months that we track at CNET surged above 5%. But deposit rates and savings rates have been falling slowly this year.
Fed September interest rate cutThis is the first rate cut since March 2020. Since then, deposit and savings rates have fallen faster. At the start of 2024, the average annualized yield on six-month CDs was 4.92%, but after the rate cut in September, it fell to 4.38%. This week it was 4.14%.
Here’s how CD rates looked at the beginning of this week compared to the beginning of last week:
What happened to CD rates last week?
| semester | CNET average APY last week | CNET average APY this week** | Weekly changes*** |
|---|---|---|---|
| 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 |
If the Fed cuts interest rates again on December 18, CD rates could fall further. Now, experts say that despite the latest news, the Fed may cut interest rates again this month. consumer price index report It shows that inflation is still rising.
Why you should open the CD now
If you’re trying to grow your savings, there’s still time to earn an attractive annual interest rate. If you’ve saved money that you won’t need for a few years, you can lock in high, guaranteed returns with CDs now.
“CDs are a good, stable way to earn predictable returns while controlling the times when you can’t access your money,” says Bobbi Rebell, Certified Financial Planner® and personal finance expert at BadCredit.org. “From a historical perspective, interest rates remain high.”
If you need access to your funds at any time, you can also use High Yield Savings Account. HYSA is better suited for your application emergency fund Because you can withdraw cash at any time without penalty.
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 December 12, 2024, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
**Weekly percentage increase/decrease between December 2, 2024 and December 9, 2024.
