Today’s CD Rates: December 18, 2024—Earn 5% Or More

The best interest rates on CDs—certificates of deposit—pay up to5.37% today, based on certificate term lengths. Here’s an overview of how CD rates are changing, followed by a guide to the current top CD rates across different terms.

Highest CD Rates Today by Term

CD Rates Today

TERM	HIGHEST APY	AVERAGE APY
3 Months	4.96%	1.31%
6 Months	5.25%	1.85%
1-Year CD (12 M)	5.37%	1.90%
2-Year CD (24 M)	4.52%	1.67%
3-Year CD (36 M)	4.65%	1.58%
5-Year CD (60 M)	4.25%	1.59%
Jumbo CD	5.25%	1.90%

Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of December 17, 2024.

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A CD is a specific type of savings account (known as a time deposit account) that comes with a fixed interest rate and a maturity period. CDs, depending on the yield, typically offer better yields than high-yield savings accounts. The tradeoff is that you can’t access your cash until the CD matures, otherwise you’ll owe a withdrawal fee. The longer the term, the harsher the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment.

Average CD Rates

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Today’s 3-Month CD Rates

Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.31%, but the highest rate is 4.96%. Last week, three-month CDs earned an average of 1.31%.

Today’s 6-Month CD Rates

If you’re interested in a short-term CD with high yields, consider a six-month CD. The best rate today is 5.25%. The current average APY for a six-month CD is 1.85%, the same as last week at this time.

Today’s 1-Year CD Rates

The highest interest rate currently available on a 12-month CD—one of the most popular CD terms—is 5.37%. If you find a one-year CD with a rate in that neighborhood, you’re getting a good deal. One week ago, the best rate was the same.

The average APY, or annual percentage yield, on a one-year CD is now 1.90%, the same as a week ago.

Today’s 2-Year CD Rates

If you can hold out for two years, 2-year CDs today are being offered at interest rates as high as 4.52%. The top rate last week at this time was a similar 4.52%.

Two-year CDs now have an average APY of 1.67%, the same as last week at this time.

Today’s 3-Year CD Rates

Today’s highest rate on a three-year CD is 4.65%, so you’ll want to shop around for that rate or something near it. Last week at this time, the best rate on a three-year CD was also 4.65%.

Today’s 5-Year CD Rates

On a five-year CD, the highest rate today is 4.25%. APYs are averaging 1.59%, the same as this time last week.

The longer the term, the higher the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD early. Be absolutely certain you understand the penalty before you make your investment.

Today’s Jumbo CD Rates

The best rate on today’s jumbo CDs is 5.25% for a 6-month term. The average APY for this category of CD is currently 1.90%, compared to 1.83% last week.

Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there’s no universally agreed-upon definition regarding what qualifies as a “jumbo” CD. Some banks and credit unions slap the label “jumbo” on CDs you can open with $50,000, $25,000 or even less.

Other Top CD Rates by Term

• Best 4-Year CD Rates
• Best 10-Year CD Rates
• Best 18-Month CD Rates
• Best Jumbo CD Rates
• Best IRA CD Rates
• Best No-Penalty CD Rates

Related: CD Interest Rates Forecast: How Good Will They Get?

Best CD Rates Offered by Banks in December 2024

CD rates are rarely the same between any two banks, so you should comparison shop when looking for a new account. You may decide to stick with your current bank because it’s convenient or join a new bank to take advantage of higher rates.

To find the right CD, look at the specific term you’re interested in with a few different banks.

Traditional, brick-and-mortar banks tend to offer lower CD rates, in general, than online banks without any branches. For example:

• Chase Bank CD rates currently range from 0.01% to 4.00%
• Discover Bank CD Rates currently range from 2.00% to 4.10%
• Bank of America CD Rates currently range from 0.03% to 4.00%
• Marcus By Goldman Sachs CD Rates currently range from 3.65% to 4.25%

Other top CD rates by banks include:

• PNC Bank CD Rates
• Citibank CD Rates
• Wells Fargo CD Rates
• Truist CD Rates
• Ally Bank CD Rates
• Capital One 360 CD Rates

How Do CDs Work?

CDs are a relatively simple savings tool: You open an account with a deposit (your principal), let your money sit for a predetermined period of months or years while you enjoy the magic of compounding interest.

Many CDs (as well as share certificates offered by credit unions) require a minimum deposit (typically less than $10,000 unless it’s a jumbo CD) to open your account. Some financial institutions allow you to fund an account with as little as a penny.

But banks and credit unions typically won’t allow you to add to your deposit once the term begins and the clock starts ticking. And they’re serious about not letting you crack open your CD or share certificate too soon. Early withdrawal penalties can be so tough they’ll eat into your principal, not just take back some of your interest.

Are CD Rates Worth It?

If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts. You will have to do without the money for as long as the term lasts; otherwise you’ll owe an early withdrawal penalty.

Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle?

The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going “poof” over the course of a year. Not a happy thought, is it?

CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don’t need immediately, while stocks provide solid long-term returns. You don’t want to risk cash you’re depending on.

The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit.

Related: CD Interest Rates Forecast: How Good Will They Get?

Methodology

Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.

Frequently Asked Questions (FAQs)