Top CD rates today: December 26, 2024 | Earn up to 4.65% APY
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Key takeaways
- The highest CD rate across terms is 4.65 percent APY, offered for a three-month CD.
- The best rates on various terms are around triple the national average yields, so it pays to shop around.
- After climbing for around two years, high-yield CD APYs have begun to decline in response to Federal Reserve rate cuts. However, competitive CDs continue to out-earn the rate of inflation.
A certificate of deposit (CD) is a bank account that earns a fixed rate of return in exchange for locking in your funds for the entire term. CD terms often range from three months to five years, although it’s possible to find ones with terms shorter or longer than that. A CD can be a good place to stash money for savings goals, such as a down payment on a house or a new car. When choosing the best CD term, consider when you’ll need access to the money.
As of today, the highest annual percentage yield (APY) across CD terms remains 4.65 percent, which is available on a three-month CD from Popular Direct, requiring a $10,000 minimum deposit. In all, leading APYs on various common CD terms range from 4.20 percent to 4.65 percent.
The table below shows top CD rates for the most common terms, as well as national averages and the amount you can earn in interest with a $5,000 deposit.
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% | 1.29% | $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% | 1.76% | $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% | 1.43% | $665 |
| 4-year | America First Credit Union | 4.20% | 1.46% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.43% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of December 26, 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.
What to do about falling CD rates
This year, many banks lowered their CD rates leading up to the September Fed rate cut, and various top rates have been decreasing since then. In total the federal funds rate was reduced three times in 2024, including on Dec. 18.
Even though we’ve seen top CD rates fall this year, competitive CDs are still earning historically high yields. In fact, these rates continue to outpace the rate of inflation. This means your money in a high-yielding CD isn’t losing purchasing power at this time. Opening a fixed-rate CD now ensures you’ll earn the same APY until the CD matures.
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. 26. 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.