- You can earn up to 4.75% APY with a high-yield CD.
- CD APYs have been falling all year, and may fall again in December if the Fed cuts rates.
- Locking in a high APY now can protect your money from additional rate drops.
Certificates of deposit have offered sky-high interest rates on your savings for the past few years. Now, as interest starts to return to the Federal Reserve’s 2% target and the central bank has started cutting rates, CD rates have been sliding. With another possible rate cut on the horizon for December, CD rates could dip even lower.
If you’ve been considering opening a certificate of deposit, you can still earn a competitive return on your savings by locking in a high rate now. Today’s best CDs offer up to 4.75% annual percentage yield — more than double the national average for some terms. When you lock in a high CD rate now, you can protect your earnings from future rate drops.
You’ll find the best APYs at credit unions. Here are some of the highest rates based on banks we track at CNET and how much you could earn by depositing $5,000 right now:
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.75% | CommunityWide Federal Credit Union | $117.37 |
| 1 year | 4.50% | CommunityWide Federal Credit Union | $225.00 |
| 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.
Will CD rates drop in December?
All eyes are on the Fed to see where interest rates will go next. The Fed could make another interest rate cut in December, which would see CD dip even lower.Â
The Fed doesn’t directly impact 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.Â
Following the Fed’s post-pandemic rate hike mandate, interest rates reached record highs and CD rates soared above 5% APY. Since the beginning of this year, CD and savings rates have been slowly decreasing. After the Fed’s first rate cut since after the pandemic in September, CD and savings rates began to fall faster.
The Fed has lowered rates twice this year, but Federal Reserve Chairman Jerome Powell alluded to a slow pace of rate cuts earlier this month. So experts are torn on whether the Fed will lower rates or hold them steady at its Dec. 17-18 meeting.
Bobbi Rebell, a CFP® and personal finance expert at BadCredit.org, thinks a rate cut is likely, but isn’t ruling out a pause, “because of continued concerns about inflation as well as a sense that the economy is not as weak as many had believed.”
What do current CD rates mean for you?
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.Â
Even with another rate cut looming, CD rates will likely drop, but they won’t plummet overnight. 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 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 | 4.21% | 4.18% | -0.71% |
| 1 year | 4.09% | 4.11% | +0.49% |
| 3 years | 3.55% | 3.55% | No change |
| 5 years | 3.48% | 3.49% | +0.29% |
How to pick the right 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. 1, 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 Nov. 25, 2024, to Nov. 29, 2024.
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