Take Advantage of High CD Rates Before They Drop
The Federal Reserve’s recent decision to lower the federal funds rate for the third time this year has sent deposit account rates on a downward spiral. But there’s still time to lock in a competitive return on a certificate of deposit (CD) and preserve your earning power.
CD Rates Remain Attractive
Despite the decline, CD rates remain high by historical standards, especially for shorter terms. You can still find rates of 4.00% APY or higher for terms of about one year and under. Longer-term CDs may not offer rates as high, but the best available rates still hover near 3%-4% APY for terms of three years or more.
Top CD Rates Available Today
Synchrony currently offers the highest CD rate of 4.35% APY on its 13-month CD, with no minimum opening deposit required. Here are some of the best CD rates available today from our verified partners:
Understanding CD Rates and the Federal Funds Rate
CD rates are closely tied to the federal funds rate. When the Fed increases its target rate, deposit account rates usually follow suit, and vice versa. With the Fed’s recent rate cuts, CD rates have begun falling. Experts predict additional rate cuts in 2025, making now a good time to lock in today’s higher CD rates.
Is a CD Right for You?
Before investing in a CD, consider the following factors:
- Interest Rates: CDs are more attractive when interest rates are high or trending downward, as they lock in the current rate for the entire term.
- Financial Goals: CDs are a safe investment choice for preserving capital and earning a steady return, but may not be suitable for long-term goals like retirement.
- Liquidity Needs: CDs require locking in your money for a set period, so consider whether you’ll need access to your funds before the term ends.
Where to Find the Best CD Rates
Don’t settle for mediocre rates from your current bank. Compare multiple CD account options, especially among online banks, credit unions, and community banks that are known for offering higher rates.
Online Banks: Online banks often offer higher rates due to lower operating costs.
Credit Unions: Not-for-profit credit unions tend to offer better rates and lower fees than for-profit banks.
Community Banks: Local banks provide more personalized service and competitive interest rates on deposits.
Act Now to Lock in Higher CD Rates
With CD rates trending downward, now is the time to take advantage of today’s higher rates. Compare CD rates from our verified partners and find the best option for your financial goals.
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