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Top CD rates today: November 12, 2024 | High APYs won't last forever

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Key takeaways

  • Today's top CD rate across terms is 4.95 percent APY, offered for a three-month CD.
  • The most competitive APYs are often found at online-only banks.
  • Competitive APYs for some terms are currently several times greater than national averages.

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.

Today, annual percentage yields (APYs) of up to 4.95 percent can be found on CD terms between three months and one year, while longer terms of up to five years earn APYs of up to 4.35 percent. While higher rates can be found on shorter terms, a longer-term CD could be beneficial if you want to lock in your money for longer at a competitive rate --- especially if going rates on new CDs continue to drop.  

Bankrate monitors the top and average rates every weekday, and you’ll find today’s top CD rates in the table below.

Today's best 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 Quontic Bank 4.95% 1.29% $61
6-month Bank5 Connect 4.85% 1.72% $120
9-month America First Credit Union 4.60% N/A $172
1-year Limelight Bank 4.50% 1.75% $225
18-month Schools First Federal Credit Union 4.20% 1.85% $318
2-year Schools First Federal Credit Union 4.20% 1.52% $429
3-year Schools First Federal Credit Union 4.20% 1.41% $657
4-year Schools First Federal Credit Union 4.20% 1.44% $894
5-year Schools First Federal Credit Union 4.35% 1.42% $1,186

Note: Annual percentage yields (APYs) shown are as of November 12, 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 decreased further since then. APYs may continue to decline in the wake of the Fed's latest decision to cut rates in November. "We are expecting the Federal Reserve to cut rates multiple times, meaning we expect CDs’ rates to be lower over the next few months," says Spencer Betts, a certified financial planner and CFP Board Ambassador.

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.

What the current interest rate environment means for 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.

How inflation impacts monetary policy

After holding its key benchmark rate steady since July 2023 to combat high inflation, officials cut the federal funds rate by half a percentage point, or 50 basis points, in September and by another quarter percentage point (25 basis points) in November. These moves come at a time when the consumer price index (CPI), a measure of inflation, has decreased significantly from its decades-high annual rate of 9.1 percent in June 2022. It’s currently at 2.4 percent.

"We are committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal,” Fed Chair Jerome Powell said in remarks following the Federal Open Market Committee meeting in November.

The current rate of inflation is a significant factor that affects what the Fed decides to do with rates. A decrease in the federal funds rate, say close to or below the current inflation rate of 2.4 percent, can be bad for savers. Namely, it can translate to lower APYs on many CDs and savings accounts. Meanwhile, a fed rate cut can be good for borrowers as interest rates tend to decrease on loans.

Is now still a good time to open a CD?

This year, top CD rates have been declining gradually due to strong signals from the Fed that it would cut interest rates. Now that the Fed has cut rates by another 25 basis points (or three-fourths of a percentage point) for a total of 75 basis points since September, it remains to be seen how much lower CD APYs will decline, and how soon. Currently, however, top APYs are earning yields well above the rate of inflation.

Investing in a CD now means potentially being able to lock in high rates prior to a drop in interest rates,” says Kurt Whitesell, a certified financial planner and CFP Board ambassador.

CD FAQs

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.

Research methodology

Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.