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- Today's best CDs offer up to 4.70% APY.
- The Fed's anticipated rate cut tomorrow means APYs are likely to continue falling.
- Opening a CD now allows you to shield your earnings from rate cuts.
Certificate of deposit rates remain attractive despite dropping in recent months. They're likely to keep falling in the coming months, especially if the Federal Reserve cuts interest rates tomorrow as expected. So, the sooner you open a CD, the more you stand to earn.
Your annual percentage yield is fixed when you open a CD. That means your returns stay the same even if rates fall. By opening one of today's top CDs, you can lock in an APY of up to 4.70% and protect your earnings from additional rate drops.
Here are some of the highest CD rates right now 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 | 4.47% | NexBank | $223.50 |
| 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.
What tomorrow's Fed decision means for CD rates
The Fed meets for a final time this year on Dec. 17-18. It doesn't directly set CD rates, the Fed's decisions affect how banks set their APYs on consumer products like CDs and savings accounts. When the Fed cuts the federal funds rate, banks tend to cut APYs on these products, and vice versa.
The Fed raised interest rates 11 times between March 2022 and July 2023 in an effort to tamp down post-pandemic inflation. As a result, the CD rates we track at CNET soared, reaching a high of 5.65% APY. 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 -- and again in November. Since then, CD and savings rates have fallen faster. At the start of 2024, the average APY on a six-month CD was 4.92%, but following September's rate cut, it was down to 4.38%. This week, it's 4.14%.
Here's where CD rates stood 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 | 4.14% | 4.15% | $0.00 |
| 1 year | 4.07% | 4.08% | $0.24 |
| 3 years | 3.52% | 3.52% | No change |
| 5 years | 3.46% | 3.46% | No change |
CD rates could drop further if the Fed makes another rate cut this week. Right now, experts say it's likely that the Fed will cut rates again this month despite the latest Consumer Price Index report showing inflation is still rising.
Why you shouldn't wait to open a CD
If you're working on growing your savings, there's still time to earn an attractive 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.
"CDs are a good, steady way to get a predictable return while controlling the amount of time you don't have access to your money," said Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert with BadCredit.org. "Rates are still high on a historical basis."
In addition, "Locking in a CD rate now could be advantageous if the Fed takes a more aggressive approach to cutting rates in 2025," said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group.
If you need ready access to your money, you can also earn a competitive rate with a high-yield savings account. HYSAs are better suited for things like your emergency fund because you can take out cash at any time without penalty.
Things to consider when choosing 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. 18, 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. 9, 2024, to Dec. 16, 2024.