The Best CDs Can Protect Your Earnings Before Rates Drop Again. Today’s CD Rates, Dec. 6, 2024

There’s plenty of economic uncertainty on the horizon, but you can at least make sure your savings is earning a high APY by locking in the best CD rates today. You can still grab an annual percentage yield, or APY, as high as 4.70% at least two of the top picks on our list. 

Savings rates have been on a steady decline this year amid the Federal Reserve’s decision to start cutting interest rates. The central bank is expected to drop rates again at its meeting later this month, so there’s no time to waste.

Unlike the best high-yield savings accounts, CDs give you a fixed interest rate for depositing your money for a specific period of time, typically three months to five years. While opening a CD now may offer less liquidity, it also protects your earnings from fluctuations in interest rates. 

Here are some of the highest rates based on banks we track at CNET and how much you could earn by depositing $5,000 right now:

Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.

How a Fed rate cut could impact CDs

All eyes are on the Fed to see where interest rates will go next. It looks increasingly likely that the Fed will make another interest rate cut in December, so CD rates could dip even lower. 

The Fed doesn’t directly impact CD rates, but it does control the federal funds rate. The federal funds rate is the overnight lending rate banks charge one another to borrow funds. When the federal funds rate goes down, rates on consumer products like CDs and savings account rates tend to follow. 

Following the Fed’s post-pandemic rate hike mandate, interest rates reached record highs and CD rates soared above 5% APY. Since the beginning of this year, CD and savings rates have been slowly decreasing. After the Fed’s first rate cut since after the pandemic in September, CD and savings rates began to fall faster.

The Fed has lowered rates twice this year, but Federal Reserve Chairman Jerome Powell alluded to a slow pace of rate cuts last month. So experts are torn on whether the Fed will lower rates or hold them steady at its Dec. 17-18 meeting.

Bobbi Rebell, a CFP® and personal finance expert at BadCredit.org, thinks a rate cut is likely, but isn’t ruling out a pause, “because of continued concerns about inflation as well as a sense that the economy is not as weak as many had believed.”

Are CDs still a good place to put your money?

If you’re working on growing your savings, there’s still time to earn a high APY. If you already have money saved that you won’t need to dip into for a few years, you can lock in a high, guaranteed return with a CD now. 

Even with another rate cut looming, a handful of CDs on our list increased rates this week. You’ll likely earn a higher return on your money by locking in a CD sooner, but you can also still earn competitive rates by growing your savings with a high-yield savings account.

Here’s where CD rates stood at the start of this week compared to the start of last week:

Here’s what to look for when opening a CD

A competitive APY is important when comparing CD accounts, but it’s not the only thing you should look at. To find the right account for you, consider these things, too:

• When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d get with a traditional CD of the same term.
• Minimum deposit requirement: Some CDs require a minimum amount to open an account — typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow your options.
• Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
• Federal deposit insurance: Make sure any bank or credit union you’re considering is an FDIC or NCUA member so your money is protected if the bank fails.
• Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that’s responsive, professional and easy to work with.

Methodology

CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.

The current banks included in CNET’s weekly CD averages include Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.

*APYs as of Dec. 5, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually. Weekly percentage increase/decrease from Nov. 29, 2024, to Dec. 2, 2024.

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