The Federal Reserve has reduced its target interest rate three times in 2024, affecting deposit account rates. This change may be your last chance to secure today’s high CD rates with a certificate of deposit (CD). As of December 30, 2024, shorter-term CD rates remain competitive, with several financial institutions offering around 4.00% APY for terms of one year or less.
The highest current CD rate is 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD, requiring a minimum opening deposit of $500. However, online banks and credit unions generally offer more competitive rates than traditional brick-and-mortar banks.
According to the FDIC, the national average interest rate for CDs stands at 1.83% for a 1-year term. This represents some of the highest average CD rates seen in nearly two decades due to the Federal Reserve’s efforts to combat inflation.
To find the best CD rates and accounts, consider the following tips:
– Shop around: Evaluate CD rates from various financial institutions and compare options before choosing an account.
– Consider online banks: They often offer competitive rates with lower overhead costs.
– Check minimum deposit requirements: Ensure your planned deposit aligns with the requirements to get the best rate.
– Review account terms and conditions: Look for early withdrawal penalties, auto-renewal policies, and flexibility options like no-penalty CDs.
Source: https://finance.yahoo.com/personal-finance/banking/article/cd-rates-today-monday-december-30-2024-110014973.html