Don’t sleep on high APYs. CD prices today, December 12, 2024

Do you want to maximize your returns with a certificate of deposit? It’s time to act.

You can earn up to 4.70% annual yield, or APY, with today Top CDs. Annual interest rates have fallen since the Fed cut rates at its last two meetings, and another cut is possible when the Fed meets next week. The earlier you open a CD, the higher APY you can lock in.

Here are some of the highest CD rates right now, based on the banks we track at CNET, and how much you can earn by depositing $5,000.

Today’s best CD prices

condition	Highest APY*	Bank	Estimated profits
6 months	4.70%	Rising bank	$117.50
1 year	4.47%	Nex Bank	$223.50
3 years	4.15%	First American Credit Union	$648.69
5 years	4.25%	First American 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 the best CNET Partners rate for your area.

What’s in store for CD prices?

The Fed does not set CD interest rates directly, but it controls the federal funds rate. The federal funds rate is the overnight lending rate that banks charge each other to borrow money. When the federal funds rate falls, interest rates on consumer products such as CDs and… Savings accounts Tend to follow up.

After the Fed raised interest rates after the pandemic, certificate of deposit rates rose above 5% annually for the six to 18 months we track at CNET. But since the beginning of this year, savings and credit rates have been slowly declining.

Federal Reserve Bank Cut interest rates in Septemberthe first interest rate cut since March 2020. Since then, savings and savings certificate rates have fallen even faster. At the beginning of 2024, the average APY on six-month CDs was 4.92%, but after the interest rate cut in September, it dropped to 4.38%. This week, the percentage was 4.14%.

Here are CD prices at the beginning of this week compared to the beginning of last week:

How have CD prices changed in the past week?

condition	CNET Average APY last week	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

Loan interest rates could fall further if the Fed cuts rates again on December 18. For now, experts say it’s likely the Fed will cut interest rates again this month despite the latest developments. Consumer Price Index Report It shows that inflation is still on the rise.

Why is now still a good time to open a CD?

If you’re growing your savings, there’s still time to earn an attractive APY. If you already have money saved that you won’t need to spend for a few years, you can get a guaranteed high return with a CD now.

“CDs are a good, proven way to get a predictable return while controlling the amount of time you don’t have access to your money,” said Bobby Rebel, certified financial planner and personal finance expert with BadCredit.org. “Rates remain high on a historical basis.”

If you want easy access to your funds, you can also get a competitive rate with 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, consider these things as well:

• When you’ll need your money: Penalties for early withdrawal It could eat into your interest earnings. So make sure you choose a term that fits your savings timeline. Alternatively, you can select A CD without penaltyalthough the APY may not be as high as you would get with a traditional CD with the same term.
• Minimum deposit requirements: Some CDs require a minimum to open an account – usually between $500 and $1,000. Others don’t. The amount of money you have to set aside can help you narrow down your options.
• expenses: Maintenance and other fees can eat into your profits. a lot Online banks They do not charge fees because their overhead costs are lower than banks with physical branches. However, read the fine print of any account you’re evaluating.
• Federal deposit insurance: Make sure which bank or Credit union Are you considering becoming 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 prices based on the latest APY information from source sites. 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.

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, First American Federal Credit Union, Federal Credit Union Community, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.

*APYs as of December 12, 2024, based on banks we track at CNET. Earnings are based on APYs and assume interest compounded annually.

**Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.

More about CDs