CD Rates Today: Lock in Up to 4.27% APY

CD rates have held firm despite the Federal Reserve's recent interest rate reduction, offering savers an opportunity to lock in attractive yields. As of December 26, 2024, the top CD rates available nationwide provide competitive returns, with some institutions offering annual percentage yields (APYs) of up to 4.27%. Here's a look at the current CD rate landscape and how you can take advantage of these high-yield offers.

Top CD Rates by Term

| Term | Institution | APY | Minimum Deposit |
| --- | --- | --- | --- |
| 3 months | MutualOne Bank | 5.65% | $500 |
| 6 months | Newtek Bank | 5.55% | $2,500 |
| 9 months | TotalDirectBank | 5.51% | $25,000 |
| 1 year | Nuvision Credit Union | 5.50% | $5,000 |
| 18 months | Signature Federal Credit Union | 4.65% | N/A |
| 2 years | Popular Direct | 4.50% | N/A |
| 3 years | Credit Human | 4.35% | N/A |
| 4 years | Popular Direct | 4.20% | N/A |
| 5 years | Popular Direct | 4.25% | N/A |

Why Lock in CD Rates Now?

The Federal Reserve's recent rate cut signals potential downward pressure on CD rates in early 2025. However, the nation's top CD rates have held firm, providing savers with an opportunity to lock in higher rates right now. For instance, Nuvision Credit Union is currently offering an 8-month CD with a 5.50% APY, which is one of the few CDs still locking in more than 5%. Additionally, Signature Federal Credit Union is paying 4.65% for 13 months, providing a guaranteed return until January 2026.

Longer-term CDs also offer attractive rates, with Credit Human offering a 3-year CD at 4.35% APY, and Popular Direct offering 4-year and 5-year CDs at 4.20% and 4.25% APY, respectively. These long-term CDs can help secure a higher rate for a more extended period, even as the Fed continues to cut rates.

How CD Rates Compare to Other Low-Risk Investment Options

Based on the information provided, the current CD rates are significantly higher than the national average for savings accounts and Treasury securities. For instance, the best CD rate from a nationally available institution is currently 5.65% APY, offered by MutualOne Bank for a 3-month term, which is more than three times the FDIC's national average rate of 1.65% on a 3-month term. Additionally, the top CD rates in our rankings typically pay three to five times as much as the national average—or even more, compared to other low-risk investment options.

For example, as of December 2024, the national average annual percentage yield (APY) for savings accounts is around 0.25% to 0.50%, according to Bankrate. In contrast, the best CD rates available are significantly higher, with the top 3-month CD rate being 5.65% APY and the top 1-year CD rate being 4.65% APY.

Similarly, Treasury securities, such as Treasury bills, notes, and bonds, typically offer lower yields than CDs. As of December 2024, the yield on the 3-month Treasury bill is around 1.50% to 2.00%, while the yield on the 1-year Treasury note is around 2.00% to 2.50%. These yields are lower than the top CD rates available, making CDs a more attractive low-risk investment option for savers.

Conclusion

CD rates today offer savers an opportunity to lock in attractive yields, with some institutions offering APYs of up to 4.27%. With the Federal Reserve's recent rate cut signaling potential downward pressure on CD rates in early 2025, now is the time to consider locking in these high-yield offers. Longer-term CDs provide an even more attractive option for securing a higher rate for a more extended period. Compared to other low-risk investment options, CDs offer significantly higher yields, making them an appealing choice for savers looking to maximize their returns.