- Today's best CDs offer APYs up to 4.70%.
- APYs have been falling for months, and this trend is likely to continue if the Fed cuts rates next week as expected.
- Opening a CD today allows you to lock in a high APY and protect your earnings from additional rate drops.
A certificate of deposit can be a great way to earn a guaranteed return on money you won't need to touch for a while. Your annual percentage yield, or APY, is fixed when you open a CD, so you'll continue to earn the same amount of interest even if overall rates go down. And rates are going down.
Since the Federal Reserve cut rates in September, APYs on CDs have been falling. Many experts believe the Fed will cut rates again at next week's meeting, which means APYs are likely to keep falling. So, the sooner you open a CD, the higher the rate you may be able to lock in.
Here are some of the highest CD rates right now, based on banks we track at CNET, and how much you could earn by depositing $5,000.
Today's best CD rates
| Highest APY* | Bank | Estimated earnings |
| 4.70% | Rising Bank | $117.50 |
| 4.45% | America First Credit Union; CommunityWide Federal Credit Union | $222.50 |
| 4.15% | America First Credit Union | $648.69 |
| 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.
Where are rates heading next?
The Fed doesn't directly set 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 accounts tend to follow.
Following the Fed's post-pandemic rate hikes, CD rates soared above 5% APY for six- to 18-month terms we track at CNET. But since the beginning of this year, CD and savings rates have been slowly decreasing.
The Fed cut rates in September, its first rate cut since March 2020. Since then, CD and savings rates have fallen faster. At the start of 2024, the average APY on six-month CD was 4.92%, but following September's rate cut, it was down to 4.38%. Last week, it was 4.15%.
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
| Last week's CNET average APY | This week's CNET average APY** | Weekly change*** |
| 4.15% | 4.14% | -0.24% |
| 4.07% | 4.07% | No change |
| 3.53% | 3.52% | -0.28% |
| 3.46% | 3.46% | No change |
CD rates could drop further if the Fed makes a rate cut on Dec. 18. Right now, experts say it's likely that the Fed will cut rates again this month unless we see a sharp increase in inflation in Wednesday's Consumer Price Index report.
Why now is still a great time to open a CD
If you're working on growing your savings, there's still time to earn an attractive 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.
If you need access to your money, you also earn a competitive rate with a high-yield savings account. HYSAs are better suited for things like your emergency fund.
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, 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. 9, 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 Dec. 2, 2024, to Dec. 9, 2024.
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