Today’s top CDs offer up to 4.75% APY, but rates are falling and expected to continue to decline due to the actions of the Federal Reserve. By opening a CD now, you can lock in a high rate and maximize your earning potential. Some of the highest CD rates today include 4.75% for a 6-month term at Bread Savings and CommunityWide Federal Credit Union, 4.50% for 1 year at CommunityWide Federal Credit Union, 4.15% for 3 years at America First Credit Union, and 4.25% for 5 years at America First Credit Union. By depositing $5,000 now, you could earn anywhere from $117.37 to $1,156.73.
The Federal Reserve plays a significant role in determining where banks set their CD rates by adjusting the federal funds rate. As the Fed raises or cuts rates, banks tend to adjust their APYs accordingly. CD rates have been on the rise in recent years due to multiple rate hikes by the Fed to combat inflation. However, as inflation has stabilized, the Fed has paused rate increases and even cut rates, leading to a decline in CD rates. It is expected that CD rates will continue to fall as the Fed may implement further rate cuts in the future.
Experts predicted a potential third rate cut by the Federal Reserve in December, but recent inflation data showing a rise in October may cause the Fed to pause rates instead. This is good news for savers looking to take advantage of high APYs while they are still available. When choosing a CD account, it is important to consider factors beyond just the APY, such as when you will need your money, minimum deposit requirements, fees, federal deposit insurance, and customer ratings and reviews. Different banks offer varying terms and conditions, so it’s essential to research and compare options.
CNET evaluates CD rates based on the latest APY information from issuer websites, considering factors like product offerings, accessibility, and customer service. More than 50 banks, credit unions, and financial companies are evaluated to provide a comprehensive view of the current CD rates available. Some of the banks included in CNET’s weekly CD averages are Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Capital One, CIT, EverBank, and Discover. Earnings are based on APYs, assuming interest is compounded annually.
As of November 20, 2024, CD rates are fluctuating, with some rates increasing slightly and others remaining stable. It is crucial to stay informed about the latest changes in CD rates to make the most of your savings. By acting now and locking in a high rate on a CD, you can secure your earnings and potentially benefit from the current competitive rates. While CD rates are expected to continue falling in the future, taking advantage of the current high rates can help you maximize your earning potential and grow your savings over time.
