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Top CD rates today: December 3, 2024 | Lock in an APY up to 4.65%

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Key takeaways

  • Today's highest CD rate across terms is 4.65 percent APY, offered for three- and six-month terms.
  • Competitive CDs are earning at least three times the national average rates, for various terms.
  • Federal Reserve rate cuts in September and November have prompted lower CD APYs. Opening a fixed-rate CD now can be a way to lock in a relatively high yield before APYs potentially drop further.

Top rates on certificates of deposit (CDs) remain unchanged so far in December, following a relatively quiet November that saw only four drops in highest rates. Despite leading CD annual percentage yields (APYs) being down an average of nearly 100 basis points over a year ago (based on Bankrate's monitoring of APYs for this page), APYs on competitive CDs remain higher than they've been in a decade, outside the current rate cycle. Opening a fixed-rate CD now helps protect your earnings should rates continue to decline on new CDs. 

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 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% 1.22% $57
6-month Limelight Bank 4.65% 1.64% $115
9-month America First Credit Union 4.55% N/A $170
1-year America First Credit Union 4.45% 1.72% $223
18-month Schools First Federal Credit Union 4.20% 1.83% $318
2-year Schools First Federal Credit Union 4.20% 1.49% $429
3-year Schools First Federal Credit Union 4.20% 1.38% $657
4-year Schools First Federal Credit Union 4.20% 1.44% $894
5-year Schools First Federal Credit Union 4.35% 1.39% $1,186

Note: Annual percentage yields (APYs) shown are as of December 3, 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?

You might decide to open a CD when rates are likely to start falling on deposit accounts. Thanks to its fixed interest rate, a competitive CD will continue to earn its high yield for the full term, even in a falling rate environment. Another benefit of the guaranteed rate is you’ll be able to calculate in advance how much interest the CD will earn through the end of the term.

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 4.43 percent on Nov. 21. 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.