Top CD rates today: December 24, 2024 | Leading rates continue to outpace inflation
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Key takeaways
- Today's top CD rate across terms is 4.65 percent APY, offered for a three-month CD.
- Competitive CDs are earning around three times the national average rates, for various terms.
- After climbing for around two years, high-yield CD APYs have been declining in response to Federal Reserve rate cuts. However, competitive CDs continue to earn rates that outpace inflation.
Opening a fixed-rate certificate of deposit (CD) now should give you peace of mind that your savings will continue to earn the same annual percentage yield (APY) even if rates continue to retreat. Today, the leading annual percentage yield (APY) on a six-month CD has fallen ever so slightly to 4.61 percent, while highest rates on all other terms remain intact. Top rates are listed in the table below, along with national averages.
This page will not be published on Dec. 25 or Jan. 1, but otherwise, we will continue to monitor and share the leading CD APYs with you every weekday.
Today's top 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 | Popular Direct | 4.65% | 1.28% | $57 |
| 6-month | Popular Direct | 4.61% | 1.69% | $114 |
| 9-month | America First Credit Union | 4.50% | N/A | $168 |
| 1-year | TAB Bank | 4.52% | 1.77% | $226 |
| 18-month | Popular Direct | 4.30% | 1.83% | $326 |
| 2-year | Popular Direct | 4.25% | 1.51% | $434 |
| 3-year | Popular Direct | 4.25% | 1.42% | $665 |
| 4-year | America First Credit Union | 4.20% | 1.45% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.43% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of December 24, 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 place for money you’re saving for future purchases or expenses. For instance, you might put money into a 12-month CD for a vacation you’re planning for next year. Or, you might deposit funds into a five-year CD to make a down payment on a house soon after the CD matures. A benefit of locking in your money is you’ll be less tempted to use it for impulse purchases in the meantime.
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. 24. 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.