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CD rates today, December 12, 2024 (top APY reaches 4.10% APY)

Casey Bond · Lead Editor and Content Strategist, Banking

Thu, Dec 12, 2024 3 min read

If you’re looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available.

What are the best CD rates today?

CD rates are relatively high compared to historical averages. This is especially true for shorter terms (around a year or less). For short-term CDs, you can expect the top offers to hover around 4.50% APY. Longer-term CDs, however, are a bit lower. Still, you can find CDs with two- or three-year terms around 4% APY.

Today, the highest CD rate is offered by Marcus by Goldman Sachs on its 1-year CD. Account holders can earn 4.10% APY with a minimum opening deposit of $500.

Here is a look at some of the best CD rates available today from our verified partners:

CD rate predictions for 2024

After years of rock-bottom interest rates, the Federal Reserve began raising its target rate in March 2022 to combat inflation. Since then, CD rates had been on an upward trajectory, reaching highs we haven’t seen in about 15 years.

However, the Fed has since begun decreasing the federal funds rate in light of slowing inflation and an overall improved economic outlook. It cut its target rate by 50 basis points in September and another 25 basis points in November.

The federal funds rate doesn’t directly impact deposit interest rates, though they are correlated. When the Fed lowers rates, financial institutions typically follow suit (and vice versa). So now that the Fed has lowered its rate, CD rates are beginning to fall again. That’s why now may be a good time to put your money in a CD and lock in today’s best rates.

How to open a CD

The process for opening a CD account varies by financial institution. However, there are a few general steps you can expect to follow:

Research CD rates: One of the most important factors to consider when opening a CD is whether the account provides a competitive rate. You can easily compare CD rates online to find the best offers.
Choose an account that meets your needs: While a CD’s interest rate is a key consideration, it shouldn’t be the only one. You should also evaluate the CD’s term length, minimum opening deposit requirements, and fees to ensure a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that’s too long, otherwise you’ll be subject to an early withdrawal penalty if you need to pull out your funds before the CD matures.
Get your documents ready: When opening a bank account, you will need to provide a few pieces of information, including your Social Security number, address, and driver’s license or passport number. Having these documents on hand will help streamline the application process.
Complete the application: These days, many financial institutions allow you to apply for an account online, though you might have to visit the branch in some cases. Either way, the application for a new CD should only take a few minutes to complete. And in many cases, you’ll get your approval decision instantly.
Fund the account: Once your CD application is approved, it’s time to fund the account. This can usually be done by transferring money from another account or mailing a check.