Secure APY rise ahead of today’s Fed decision. CD prices today, December 18, 2024

Interest rates on certificates of deposit remain attractive, although they have declined in recent months. It is likely to continue to decline in the coming months, especially if the Fed Lowers interest rates Tomorrow as expected. Therefore, the earlier you open the CD, the more you will gain.

The annual percentage return is fixed when you open a CD. This means that your returns remain the same even if prices fall. By opening one today Top CDsyou can secure an APY of up to 4.70% and protect your profits from further price drops.

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.

What tomorrow’s Fed decision means for CD prices

The Federal Reserve meets for the last time this year on December 17-18. It does not set CD rates directly, as the Fed’s decisions affect how banks set their APYs on consumer products like CDs and CDs. 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. 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%.

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%	$0.00
1 year	4.07%	4.08%	$0.24
3 years	3.52%	3.52%	No change
5 years	3.46%	3.46%	No change

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

Why you shouldn’t wait 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.

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 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.

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