High APYs may not last much longer after the Fed cuts rates. Today’s CD prices, December 19, 2024

Yesterday, that The Federal Reserve cut interest rates by 25 basis points, as most experts had expected. This is the Fed’s third rate cut this year, and after the last two rate cuts, we saw a significant decline in certificate of deposit rates.

You can still find it Top CDs You earn up to 4.70% – more than double National average Guess for some terms. But with this recent rate cut and further rate cuts expected in 2025, now is the time to lock in your APR. If you wait too long, you probably won’t find such good prices.

Here are some of the highest CD rates currently available and how much you could make with a $5,000 deposit.

Today’s best CD prices

Expression	Highest APR*	bank	Estimated earnings
6 months	4.70%	Rising bench	$117.50
1 year	4.47%	NexBank	$223.50
3 years	4.15%	America First Credit Union	$648.69
5 years	4.25%	America First Credit Union	$1,156.73

Experts recommend comparing rates before opening a CD account to get the best possible APY. Enter your information below to get the best rate from CNET partners for your region.

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

The Fed will meet for the last time this year on December 17th and 18th. While it doesn’t set CD interest rates directly, the Fed’s decisions affect how banks set their APRs on consumer items like CDs, etc Savings accounts. When the Fed lowers interest rates, banks tend to lower APYs on these products, and vice versa.

The Fed raised interest rates 11 times between March 2022 and July 2023 to curb post-pandemic inflation. As a result, the CD rates we track at CNET skyrocketed, reaching a high of 5.65% APR. But since the beginning of this year, CD and savings interest rates have been slowly falling.

The Fed Interest rate cut in September – the first rate cut since March 2020 – and again November. Since then, CD and savings rates have fallen more quickly. At the start of 2024, the average APR on a six-month CD was 4.92%, but after the September rate cut, it fell to 4.38%. This week it is 4.14%. We are likely to see further declines due to yesterday’s rate cut.

Here’s how CD prices were at the start of this week compared to the start of last week:

How CD prices have changed in the last week

Expression	Last week’s CNET average APY	This week’s average CNET 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 now the time to open a CD?

As you work to grow your savings, you still have time to earn an attractive APR. If you already have money saved that you won’t need to use for several years, you can now secure a high, guaranteed return with a CD.

“CDs are a good, stable way to earn a predictable return while controlling the time when you don’t have access to your money,” said Bobbi Rebell, Certified Financial Planner® and personal finance expert at BadCredit.org. “Interest rates are still high by historical standards.”

Additionally, “setting a CD rate now could be beneficial if the Fed 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 quick access to your money, you can also get a competitive rate with a High interest savings account. HYSAs are better for things like yours Emergency fund because you can withdraw cash at any time and without penalty.

What you should look for in a CD

A competitive APR is important when comparing CD accounts, but it’s not the only thing you should look for. To find the right account for you, you should also consider the following:

• If you need your money: Prepayment penalty can affect your interest income. Be sure to choose a term that fits your savings schedule. Alternatively, you can select a CD without penaltyalthough the APY may not be as high as a traditional CD with the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account – typically $500 to $1,000. Others don’t. How much money you need to set aside can help you narrow down your options.
• Fees: Maintenance and other fees can reduce your revenue. Many Online banks do not charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for each account you review.
• Federal deposit insurance: Make sure that every bank or Credit union Consider being 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 say about the bank. You want a bank that you can work with quickly and professionally.

methodology

CNET reviews CD prices based on the latest APY information from issuer websites. We evaluated CD interest 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, 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 December 18, 2024, based on the banks we track at CNET. Returns are based on effective annual interest rates and it is assumed that interest will be compounded annually.

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

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