Top CD rates today: December 9, 2024 | Rates remain elevated for now
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Key takeaways
- Today's top CD rate across terms is 4.65 percent APY, offered on three- and six-month terms.
- 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.
While deposit accounts have been in an overall falling-rate environment for months, slight rate increases among banks aren’t unheard of these days. Annual percentage yields (APYs) offered by banks tend to move in lockstep with Federal Reserve rate changes, although other factors could affect the APYs banks are offering, such as a bank’s need for additional deposits.
Recently, we’ve seen some slight increases in leading APYs for certificates of deposit (CDs), for a few terms. Locking in a competitive APY now ensures you'll earn that rate for the duration of the CD, even if some rates retreat further — which could happen if the Fed lowers rates again when officials meet Dec. 18.
Finding the highest APY from a federally insured bank or credit union requires some research, but Bankrate helps save you some effort by monitoring top CD rates daily. 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 | America First Credit Union | 4.65% | 1.25% | $57 |
| 6-month | Limelight Bank | 4.65% | 1.66% | $115 |
| 9-month | America First Credit Union | 4.55% | N/A | $170 |
| 1-year | TAB Bank | 4.52% | 1.70% | $226 |
| 18-month | Popular Direct | 4.30% | 1.84% | $326 |
| 2-year | Popular Direct | 4.25% | 1.47% | $434 |
| 3-year | Popular Direct | 4.25% | 1.37% | $665 |
| 4-year | America First Credit Union | 4.20% | 1.44% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.37% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of December 9, 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.
How much $10,000 could earn you in a one-year CD
If you’re comfortable locking $10,000 into a one-year CD right now, and the CD earns 4.50 percent APY, it would earn around $450 in interest by the time it matures. Bankrate’s CD calculator can help you determine how much a CD will be worth at the end of its term. Just input the CD’s APY, the term length and the amount of your opening deposit.
How the current rate environment impacts CDs
Recent federal funds rate changes: The Federal Reserve lowered its benchmark interest rate twice in recent months, and the federal funds rate currently stands at a target range of 4.5-4.75 percent. Prior to these rate cuts, the Fed had gradually raised rates 11 times in 2022 and 2023, and rates stood at a 23-year high leading up to the September cut.
What this means for deposit accounts such as CDs: Yields on competitive savings accounts and CDs tend to move in lockstep with the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. The Fed’s recent November rate cut could spur further decreases in CD APYs.
Prior to the September 2024 rate cut, the Fed had held rates steady since July 2023. Meanwhile, top CD APYs peaked in late 2023 and have since been decreasing gradually, as illustrated below.
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.