High APY levels may not be around for much longer after the Fed rate cut. CD prices today, December 19, 2024

Yesterday, The Federal Reserve lowered interest rates By 25 basis points, as most experts expected. This is the third time the Fed has cut interest rates this year, and after the last two rate cuts, we have seen a notable decline in certificate of deposit rates.

You can still find Top CDs Earn up to 4.70% – more than double National average Modified for some conditions. But with this latest interest rate cut and more expected in 2025, it’s time to secure your APY. You probably won’t be able to find good prices if you wait too long.

Here are some of the highest CD rates at the moment 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.

Why CD prices are likely to fall after the Fed’s latest move

The Fed meets for the last time this year on December 17 and 18. Although it does not directly set rates for certificates of deposit, the Fed’s decisions affect how banks set their APYs on consumer products such as CDs and credit cards. Savings accounts. When the Fed lowers the federal funds rate, banks tend to lower the annual yield on these products, and vice versa.

The Fed raised interest rates 11 times between March 2022 and July 2023 in an attempt to lower post-pandemic inflation. As a result, CD prices we track at CNET have soared, reaching a high of 5.65% APY. But since the beginning of this year, savings and credit rates have been slowly declining.

Federal Reserve Bank Cut interest rates in September – The first interest rate cut since March 2020 – and again November. Since then, savings and credit rates have declined 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%. It is likely that we will see additional declines as a result of yesterday’s interest rate cut.

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	4.14%	4.15%	0.0024
1 year	4.07%	4.08%	0.24
3 years	3.52%	3.52%	No change
5 years	3.46%	3.46%	No change

Why is it 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, consistent 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 at BadCredit.org. “Rates remain high on a historical basis.”

Additionally, “fixing the CD rate now could be beneficial if the Fed takes a more aggressive approach to cutting interest rates in 2025,” said Varun Dooj, founder and CEO of CFP. Harrison Wallace Financial Group.

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 18, 2024, based on banks we track at CNET. Earnings are based on APYs and assume interest compounded annually.

**Weekly percentage increase/decrease from December 9, 2024 to December 16, 2024.

More about CDs