Now’s the Time to Lock In a High APY. Today’s CD Rates, Dec. 23, 2024
- With today’s best CDs, you can earn up to 4.70% APY.
- APY has been falling for several months and will likely continue to fall after the Fed’s latest rate cut.
- Locking in APY now protects your income from additional interest rate drops.
Certificates of deposit are a great place to store cash that you don’t need to touch for a while. If you’re in the market for a CD, now is the perfect time to open one.
At today’s prices, you can still earn up to 4.70% annual yield (APY) Top CD. that’s more than twice national average For certain terms. APY has been declining for months, and The latest rate cut from the Federal Reserve Meaning they are likely to continue falling. Therefore, the sooner you open a CD, the higher the interest rate you lock in and the higher your earning potential.
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 | 4.47% | 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 |
Experts recommend comparing interest rates before opening a CD account to get the best possible annual return. Enter your message below to get the best prices in your area from CNET partners.
Why now is the time to open the CD
The days of sky-high CD interest rates may be over, but locking in a high APR with one of today’s top accounts is still a smart move.
The Fed’s actions set banks’ reserve requirements 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.
From March 2022 to July 2023, the Federal Reserve raised interest rates 11 times in response to record inflation, CD interest rates soared, and the annual interest rates of banks we track at CNET reached 5.65%. Since then, interest rates have fallen significantly, especially after the Fed cut rates at its last three meetings. Today’s highest APY is 4.70%, still more than double last year’s national average For certain terms. With the Federal Reserve expected to cut interest rates further in 2025, locking in a high APR now can protect your income from further rate cuts.
What happened to CD rates last week?
| semester | CNET average APY last week | CNET average APY this week** | Weekly changes*** |
|---|---|---|---|
| 6 months | 4.14% | 4.15% | 0.0024 |
| 1 year | 4.07% | 4.08% | 0.24 |
| 3 years | 3.52% | 3.52% | no change |
| 5 years | 3.46% | 3.46% | no change |
How to choose the best CD for you
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, 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 Internet 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, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Union.
*APY as of December 20, 2024, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
**Weekly percentage increase/decrease between December 9, 2024 and December 16, 2024.
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2024-12-23 10:30:00