Act Now and Lock In APYs Above 4% on Your Cash. Today’s CD Rates, Dec. 24, 2024
- You can earn up to 4.70% APY with today’s best CDs.
- Given the Fed’s last rate cut, the savings rate will continue to fall.
- Locking in your term deposit rate now will help your cash grow.
CD accounts are a great way to earn interest on cash that you won’t be using for a while. While term deposit yields aren’t going up any time soon, don’t let that stop you from locking in today’s top rates.
You can earn up to 4.70% APY with today’s top investments Deposit interest rate. that’s more than twice national average For certain terms.
The Federal Reserve implemented its The latest rate cut last week A gradual reduction in interest rates is expected in 2025, meaning deposit rates (and savings rates) may soon fall.
Here are some of the highest CD rates available right now and how much you can earn by depositing $5,000.
Today’s Best CD Rates
| semester | Maximum annualized interest rate* | bank | Estimated revenue |
|---|---|---|---|
| 6 months | 4.70% | rise bank | $117.50 |
| 1 year | 4.50% | Focus Bank | $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 |
Experts recommend comparing interest rates before opening a CD account to get the best possible annual return. Enter your information below to get the best prices in your area from CNET partners.
Lock in high CD rates before the end of the year
While the days of sky-high CD rates may be over, locking in a high APR with one of today’s top accounts is still a smart move.
The Fed’s actions set reserve requirements for banks and savings account APY. When the Federal Reserve raises the federal funds rate, banks tend to raise the annual interest rates on these accounts. When the federal funds rate is lowered, banks also lower their annual interest rates.
In recent years, the Federal Reserve has raised interest rates 11 times in response to record inflation, and CD rates have soared, reaching 5.65% annualized rates at banks we track at CNET. Savings rates have fallen sharply since the Federal Reserve began cutting interest rates in the fall.
CDs lock in a fixed interest rate for a specified period, so your APY won’t drop even if the Fed continues to lower interest rates. Locking in a high APR now protects your income from additional fluctuations between banks. Today’s highest APY is 4.70%, still more than double last year’s national average For certain terms.
What happened to CD rates last week?
| semester | CNET average APY last week | CNET average APY this week** | Weekly changes*** |
|---|---|---|---|
| 6 months | 4.15% | 4.09% | -1.45% |
| 1 year | 4.08% | 4.03% | -1.22% |
| 3 years | 3.52% | 3.50% | -0.57% |
| 5 years | 3.46% | 3.45% | -0.29% |
When deciding on a CD, consider bigger issues than APY
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 a 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 24, 2024, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
**Weekly percentage increase/decrease between December 16, 2024 and December 23, 2024.
