Top CD rates today: December 17, 2024 | Highest APYs hold steady before Fed rate decision
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Key takeaways
- Today's highest CD rate across terms is 4.65 percent APY, offered for three- and six-month CDs.
- The best rates on various terms are more than triple the national average yields, so it pays to shop around.
- Recent Federal Reserve rate cuts have prompted lower APYs on CDs, although competitive APYs remain higher than they’ve been in decades, outside the current rate cycle.
After having lowered interest rates by a combined three-quarters of a percentage point (75 basis points) in their November and September meetings, Federal Reserve policymakers are widely expected to lower rates further this week. Consensus among market watchers is that the rate will be lowered by a quarter percentage point, or 25 basis points.
Such a move could set off additional dips in high-yield certificate of deposit (CD) rates, some of which decreased both before and after the September Fed rate cut. An upside to a fixed-rate CD can be that it earns the same annual percentage yield (APY) throughout its entire term, which is why some savers are turning to high-yield CDs now before the going rates potentially drop further.
Bankrate monitors the top and average rates every weekday, and you’ll find today’s top CD rates in the table below.
Today's CD rates by term
| CD term | Institution offering top APY | Highest APY | National average APY | Estimated earnings on $5,000 with top APY |
|---|---|---|---|---|
| 3-month | America First Credit Union | 4.65% | 1.27% | $57 |
| 6-month | Limelight Bank | 4.65% | 1.68% | $115 |
| 9-month | America First Credit Union | 4.55% | N/A | $170 |
| 1-year | TAB Bank | 4.52% | 1.74% | $226 |
| 18-month | Popular Direct | 4.30% | 1.82% | $326 |
| 2-year | Popular Direct | 4.25% | 1.50% | $434 |
| 3-year | Popular Direct | 4.25% | 1.41% | $665 |
| 4-year | America First Credit Union | 4.20% | 1.45% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.41% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of December 17, 2024. APYs for some products may vary by region.
N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.
When is a CD a good idea?
A CD can be a good option when you find one with a competitive rate and you can afford to lock in the money for the entire term. Most CDs charge an early withdrawal penalty for taking out the money before the maturity date. An upside to such a penalty structure is you’ll be less tempted to withdraw the money early and use it for impulse purchases.
Recent trends in top CD rates
Competitive CD APYs have been trending downward throughout 2024. For example, the highest one-year CD APY at the start of January was 5.66 percent, whereas it was 4.52 percent on Dec. 12. Among the popular terms Bankrate monitors for this page, all rates have seen steeper declines in the second half of 2024, as compared to the first half.
CD glossary
Here are some terms you’ll likely come across when choosing a CD.
- Add-on CD: A CD that enables you to make additional deposits after your initial investment. This feature affords more flexibility than traditional CDs, which only allow one deposit at the beginning of the term.
- Annual percentage yield (APY): A percentage that indicates how much interest a CD earns in one year, which takes into account the effect of compounding.
- Brokered CD: A type of CD issued by a bank but sold through a brokerage firm or other financial institution.
- CD ladder: An investment strategy that involves purchasing multiple CDs with varying maturity dates to provide liquidity and take advantage of higher rates.
- Early withdrawal penalty: A fee charged if funds are withdrawn from a CD before the maturity date. Penalties often range anywhere from 90 days to 365 days’ worth of interest.
- Grace period: A specific time after the maturity date during which an account holder can make changes to the CD without penalties. A grace period typically ranges from five to 14 days.
- IRA CD: A CD that’s held within an individual retirement account.
- Minimum opening deposit: The lowest amount of money required to open a CD account, which can vary by institution. Some institutions don’t have a minimum deposit requirement.
- No-penalty CD: A type of CD that allows you to withdraw your money without facing a penalty while providing a fixed APY.
- Promotional CD: Also known as a bonus or special CD, it’s a CD with an above average APY. These may be offered by banks and credit unions as a way to obtain new customers.
- Jumbo CD: A CD that has a high minimum balance requirement, typically $100,000, sometimes as low as $95,000. This type of CD tends to offer a higher interest rate than regular CDs with the same term.
- Bump-up CD: Also known as a “raise-your-rate CD,” a bump-up CD provides savers with the option to increase the CD’s APY without having to change its term. Generally, only one rate increase is allowed during its term.