Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
- You can earn up to 4.70% with today’s best CDs.
- APIs are on track to fall after the recent Fed rate cut, with another cut expected next week.
- By opening a CD now, you can lock in a great API and protect your earnings from further rate drops.
Certificate of deposit rates may be falling, but there’s still time to lock in a competitive rate if you act fast.
Today’s premium CDs they offer annual percentage returns, or API, as high as 4.70% – more than double national average for some terms. But with rates falling, the sooner you open a CD, the more interest you can earn. Experts expect the Federal Reserve to cut rates at next week’s meeting, meaning APIs are likely to continue to fall.
Here are some of the highest CD rates right now, based on the banks we track at CNET, and how much you could earn by depositing $5,000.
Today’s best CD prices
| Term | Highest API* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.70% | Rising Bank | $117.50 |
| 1 year | 4.47% | NekBank | $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 API. Enter your information below to get the best price from CNET’s partners in your area.
What next week’s Fed meeting means for CD rates
The Fed does not set CD rates directly, but it does control the federal funds rate. The federal funds rate is the overnight lending rate that banks charge each other to borrow funds. When the federal funds rate decreases, rates on consumer products such as CDs and savings accounts tend to follow.
Following the Fed’s post-pandemic rate hike, CD rates have risen above 5% API for the six- to 18-month periods we track at CNET. But since the beginning of this year, CD and savings rates have been slowly declining.
Fed cut rates in Septemberits first rate cut since March 2020. Since then, CD and savings rates have been falling faster. In early 2024, the average API on a 6-month CD was 4.92%, but after the September rate cut, it fell to 4.38%. Last week it was 4.15%.
Here’s where 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
| Term | Last week’s CNET average API | This week’s CNET average API** | Weekly Change*** |
|---|---|---|---|
| 6 months | 4.15% | 4.14% | -0.24% |
| 1 year | 4.07% | 4.07% | No change |
| 3 years | 3.53% | 3.52% | -0.28% |
| 5 years | 3.46% | 3.46% | No change |
CD rates could fall further if the Fed cuts rates again on December 18. Currently, experts say the Fed is likely to cut rates again this month unless we see a sharp rise in inflation in Wednesday’s consumer price index report.
Why you should open a CD today
If you are working to increase your savings, you still have time to earn an attractive API. If you already have money saved that you won’t need to dip into for a few years, you can get a high, guaranteed return now with a CD.
If you need easy access to your money, you’ll also earn a competitive rate with a high yield savings account. HISAs are more appropriate for things like yours contingency fund.
Consider these things when choosing a CD
Competing API 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 will need the money: Penalties for early withdrawal it can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. Alternatively, you can choose a CD without penaltyalthough the API 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 – usually $500 to $1,000. Others don’t. How much money you have to spare can help you narrow down your options.
- Fees: Maintenance fees and other fees can affect your earnings. Many online banks they do not charge fees because they have lower overhead costs than banks with physical branches. However, read the fine print for any account you are evaluating.
- Federal Deposit Insurance: Make sure that any bank or credit union you believe you are 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 API information from publisher websites. We’ve evaluated the CD rates of more than 50 banks, credit unions and finance companies. We evaluate CDs based on API, product offering, affordability and customer service.
Current banks included in CNET’s weekly CD averages include Alliant Credit Union, Alli Bank, American Express National Bank, Barclais, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MISB Direct, Quantic , Bank on the Rise, Synchroni, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityVide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connekus Credit Union.
*API as of December 10, 2024 based on the banks we track at CNET. Earnings are based on APIs and interest is assumed to compound annually. Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.
More about CDs
