- You can earn up to 4.70% APY with today’s top CDs.
- APYs are on the way.
- When you open a CD, your APY is locked in, so opening a CD now can protect your earnings from additional rate drops.
Do you want to increase your earnings with a certificate of deposit? Now is the time to act.
Today’s top CDs Offer up to 4.70% APR or APY. But APYs have fallen since the Federal Reserve cut interest rates at its last two meetings, and experts expect another cut when the Fed meets this week. So the sooner you open the CD, the higher the APY you can lock in and the greater your earning potential.
Here are the top CD rates right now and how much you can earn by investing $5,000.
Today’s best CD prices
| Duration | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.70% | Rising Bank | $117.50 |
| 1 year | 4.47% | NexBank | $223.50 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1156.73 |
Experts recommend comparing rates before opening a CD account to get the best possible APY. Enter your information below to get the best rate for your area from CNET partners.
How this week’s Fed decision could affect CD rates
The Fed meets for the last time this year on December 17-18. Although it doesn’t directly set CD rates, the Fed’s decisions affect how banks set APYs on CDs and consumer products like CDs. savings accounts. When the Fed lowers the federal funds rate, banks tend to lower APYs on these products, and vice versa.
The Fed has raised interest rates 11 times between March 2022 and July 2023 to reduce post-pandemic inflation. As a result, the CD rates we tracked at CNET rose to 5.65% APY. But since the beginning of this year, CD and savings rates have been slowly declining.
Fed In September, he lowered the interest rates — the first rate cut since March 2020 — and again november. Since then, CD and savings rates have fallen even faster. At the start of 2024, the average APY on a six-month CD was 4.92%, but that dropped to 4.38% after the rate cut in September. This week it is 4.14%.
Here’s where CD prices are at the beginning of this week compared to the beginning of last week:
How CD prices have changed in the last week
| Duration | CNET average APY last week | This week’s CNET average APY** | Weekly change*** |
|---|---|---|---|
| 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 |
If the Fed makes another rate cut this week, CD rates could fall further. Experts now say the Fed is likely to cut rates again this month, despite recent news Consumer price index report indicating that inflation is still rising.
Why now is the time to open a CD?
If you’re working on increasing your savings, you still have time to earn an attractive APY. If you already have money that you won’t need to sink for a few years, you can get a high, guaranteed return with a CD now.
“CDs are a good, sustainable way to generate predictable income while controlling when you don’t have access to your money,” said Bobby Rebell, Certified Financial Planner® and Personal Finance Expert at BadCredit.org. “Prices are still high on a historical basis.”
Additionally, “locking in a CD rate now may be beneficial if the Fed becomes more aggressive in cutting rates in 2025,” said Faron Daugs, CFP founder and CEO. Harrison Wallace Financial Group.
If you need ready access to your money, you can earn a competitive rate with a high yield savings account. HYSAs are better suited for things like yours emergency fund because you can withdraw cash at any time without penalty.
What to look for in a CD
A competitive APY is important when comparing CD accounts, but it’s not the only thing you should look at. To find the right account for you, also consider:
- When you need your money: Early withdrawal penalties you can eat your interest earnings. So, make sure you choose a tenure that suits your savings schedule. Alternatively, you can choose a penalty free CDalthough the APY may not be as high as you would get with a traditional CD of the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account — typically $500 to $1,000. Others do not. How much money you have to spare can help you narrow down your options.
- Fees: Maintenance and other payments may be included in your earnings. A lot online banks do not charge fees because they have lower overheads than banks with physical branches. Again, read the fine print for any account you value.
- Federal deposit insurance: Any bank or make sure credit union Consider being a member of the FDIC or NCUA, so 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 reviews CD rates based on the latest APY data from issuer websites. We evaluated the CD rates of over 50 banks, credit unions and finance companies. We rate CDs based on APY, product offerings, affordability 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 as of December 17, 2024 based on banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly rate increase/decrease from December 9, 2024 to December 16, 2024.
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