Certificate of Deposit rates today, December 26, 2024 (security up to 4.27% p.a.)

If you’re looking for a safe place to store your savings, a certificate of deposit (CD) may be a great option. These accounts often offer higher interest rates than traditional checking and savings accounts. However, CD prices can vary widely. Learn more about CD prices today and where to find them High yield CDs At the best prices available.

CD rates are relatively high compared to historical averages. This is especially true for shorter periods (about a year or less). For short-term CDs, you can expect the best offers to hover around 4% APY. However, long-term CDs fare slightly less.

Today, the highest CD rate is 4.27% APY, which NexBank offers on its one-year CD. However, there is a large minimum opening deposit of $25,000.

The next highest rate can be found at Marcus by Goldman Sachs, which offers 4.25% APY over a one-year term. A minimum opening deposit of $500 is required.

Here’s a look at some of the best CD prices available today from our certified partners:

The Federal Reserve has begun lowering the federal funds rate in light of slowing inflation and a generally improving economic outlook. It cut its interest rate target three times in late 2024, by a total of one percentage point.

The Fed has indicated that it will continue to cut its target interest rate in 2025. However, it now expects a total of two cuts, down from its previous forecast of four.

The federal funds rate does not directly affect deposit rates, although they are related. When the Fed lowers interest rates, financial institutions typically follow suit (and vice versa). Now that the Fed has lowered interest rates, interest rates on CDs are starting to fall again. That’s why now might be a good time to put your money into a CD and get the best rates today.

The process of opening a CD account varies depending on the financial institution. However, there are some general steps you can expect to follow:

• Research CD prices: One of the most important factors to consider when opening a CD is whether the account offers a competitive rate. You can easily Compare CD prices online To find the best offers.

• Choose the account that meets your needs: While a CD’s interest rate is a major consideration, it shouldn’t be the only one. You should also evaluate the CD term, minimum opening deposit requirements, and fees to make sure a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that is too long, otherwise you will be subject to a penalty Penalty for early withdrawal If you need to withdraw your funds before the CD matures.

• Prepare your documents: When you open a bank account, you’ll need to provide some information, including your Social Security number, address, and driver’s license or passport number. Having these documents on hand will help simplify the application process.

• Complete the order: These days, many financial institutions allow you to apply for an account online, although you may have to visit a branch in some cases. In either case, completing the application for a new CD should only take a few minutes. In many cases, you will receive an approval decision immediately.

• Fund the Account: Once your CD application is approved, it’s time to fund the account. This can usually be done by transferring funds from another account or mailing a check.

Read more: Step-by-step instructions for opening a CD