Set a high APY ahead of today’s Fed decision. CD rates today, December 18, 2024

Certificate of deposit rates remain attractive despite falling in recent months. They are likely to continue falling in the coming months, especially if the Federal Reserve cuts interest rates tomorrow as expected. Therefore, the sooner you open a CD, the more you can earn.

Your annual percentage yield is set when you open a CD. That means your returns remain the same even if rates go down. By opening one of today’s top CDs, you can lock in an APY of up to 4.70% and protect your earnings against additional rate drops.

Here are some of the highest CD rates right now and how much you could earn by depositing $5,000.

Today’s best CD rates

Term	Highest APY*	Bank	Estimated earnings
6 months	4.70%	Bank on the rise	$117.50
1 year	4.47%	NexBank	$223.50
3 years	4.15%	America’s First Credit Union	$648.69
5 years	4.25%	America’s 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 the best rate from CNET partners for your area.

What Tomorrow’s Fed Decision Means for CD Rates

The Federal Reserve will meet for the last time this year on December 17-18. It doesn’t directly set CD rates, the Federal Reserve’s decisions affect how banks set their APYs on consumer products like CDs and savings accounts. When the Federal Reserve cuts the federal funds rate, banks tend to cut the APYs on these products, and vice versa.

The Federal Reserve raised interest rates 11 times between March 2022 and July 2023 in an effort to curb post-pandemic inflation. As a result, the CD rates we tracked at CNET skyrocketed, peaking at 5.65% APY. Since the beginning of this year, savings and CD rates have been slowly declining.

The Federal Reserve cut rates in September (its first cut since March 2020) and again in November. Since then, CD and savings rates have fallen more rapidly. At the beginning of 2024, the average APY on a six-month CD was 4.92%, but after the September rate cut, it dropped to 4.38%. This week it is 4.14%.

Here’s where CD rates were at the start of this week compared to the start of last week:

How CD rates have changed in the last week

Term	CNET average APY from last week	This week’s 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 changes
5 years	3.46%	3.46%	No changes

CD rates could fall further if the Federal Reserve makes another rate cut this week. Right now, experts say the Federal Reserve is likely to cut rates again this month even though the latest Consumer Price Index report shows inflation continuing to rise.

Why you shouldn’t wait to open a CD

If you’re working to increase your savings, there’s still time to get an attractive APY. If you already have money saved and won’t need to use it for a few years, you can lock in a guaranteed high return with a CD now.

“CDs are a good, consistent way to earn a predictable return while controlling the amount of time you don’t have access to your money,” said Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert at BadCredit.org. “Rates are still high by historical standards.”

Additionally, “Setting a CD rate now could be advantageous if the Federal Reserve takes a more aggressive approach to cutting rates in 2025,” said Faron Daugs, CFP, founder and CEO of Harrison Wallace Financial Group.

If you need immediate access to your money, you can also get a competitive rate with a high-yield savings account. HYSAs are best suited for things like your 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 consider. To find the right account for you, also consider these things:

• When will you need your money: Early withdrawal penalties can affect your interest earnings. So make sure you choose a term that fits your savings schedule. Alternatively, you can select a penalty-free CD, although the APY may not be as high as you would get with a traditional CD of the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account, typically between $500 and $1000. Others do not. The amount of money you have to set aside can help you narrow down your options.
• Fee: Maintenance fees and other fees can affect your profits. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print of any account you’re evaluating.
• Federal Deposit Insurance: Make sure any bank or credit union you are considering is a member of the FDIC or NCUA so your money is protected. if the bank goes bankrupt.
• 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 rates based on the most recent APY information from issuers’ websites. We evaluate CD rates from over 50 banks, credit unions, and finance companies. We evaluate CDs based on APY, product offering, 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, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.

*APY as of December 18, 2024, based on banks we track at CNET. Earnings are based on APY and assume interest is compounded annually.

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

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