- You can still lock in an APY as high as 4.70% for a six-month CD.
- Opening a CD today protects your interest rate, so you don't have to worry about earning less if the Fed cuts rates next week.
- Right now short-term CDs have higher APYs than longer term CDs.
The Federal Reserve meets in a little over one week. There's a lot of speculation about what the central bank will do next -- but most experts are leaning toward another 25-basis-point rate cut. That means you could see rates on savings and certificates of deposit dip again going into the new year.
If you have savings you won't need to touch for a year or more, putting that money into a CD will let you lock in a fixed interest rate. Some banks are offering CD rates between 4.15% and 4.70% depending on the term, but average rates have slipped to 4.15% APY.
Opening a CD now lets you lock in your rate, so you won't miss out on interest if rates go down.
Here are some of the highest CD rates right now, based on banks we track at CNET, and how much you could earn by depositing $5,000.
Today's best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.70% | Rising Bank | $117.50 |
| 1 year | 4.45% | America First Credit Union; CommunityWide Federal Credit Union | $222.50 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET's partners' best rate for your area.
How another Fed rate cut could impact CD rates next year
The Fed doesn't directly set CD rates, but it does control the federal funds rate. The federal funds rate is the overnight lending rate banks charge one another to borrow funds. When the federal funds rate goes down, rates on consumer products like CDs and savings account rates tend to follow.
Following the Fed's postpandemic rate hike mandate, CD rates soared above 5% APY for six- to 18-month terms. But since the beginning of this year, CD and savings rates have been slowly decreasing.
The Fed cut rates in September, its first rate cut since March 2020. Since then, CD and savings rates have rapidly fallen. At the start of the new year the average six-month CD rate was 4.92% APY, but following September's rate cut, it was down to 4.38% APY. Last week, it was down to 4.15%.
CD rates could drop further if the Fed makes a rate cut on Dec. 18. Right now experts say it's likely the Fed will cut rates again this month, unless we see a sharp increase in inflation in Wednesday's Consumer Price Index report.
CDs are still a good place to stash savings you won't need for a while
If you're working on growing your savings, there's still time to earn a high APY. If you already have money saved that you won't need to dip into for a few years, you can lock in a high, guaranteed return with a CD now.
Even with another rate cut looming, a handful of CDs on our list increased rates this week. You'll likely earn a higher return on your money by locking in a CD sooner, but you can also still earn competitive rates by growing your savings with a high-yield savings account.
Here's where CD rates stand at the start of this week compared to the start of last week:
How CD rates have changed in the last week
| Term | Last week's CNET average APY | This week's CNET average APY* | Weekly change* |
|---|---|---|---|
| 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 |
Here's what to look for when opening 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, consider these things, too:
- When you'll need your money: Early withdrawal penalties can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you'd 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 set aside can help you narrow your options.
- Fees: Maintenance and other fees can eat into your earnings. Many online banks don't charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you're evaluating.
- Federal deposit insurance: Make sure any bank or credit union you're considering is an FDIC or NCUA member 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's responsive, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The 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 Dec. 9, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually. Weekly percentage increase/decrease from Dec. 2, 2024, to Dec. 9, 2024.