Current CD Rates, Dec. 2024: APYs Are Falling

The falling-rate environment is in full swing. The best CD rates have largely dropped from around 5% to 4% annual percentage yields for six-month through one-year terms within the past few months. The era of 5% APYs on certificates of deposit is nearly over as the Federal Reserve cut its benchmark rate twice in 2024, which are the first Fed rate decreases since March 2020.

Longer-term high-yield CDs, such as three- to five-year terms, have been around 4% for much of this year and are now slipping into mid-3% territory. Skip down to see current CD rates.

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2024 data highlight: bigger drops for high-yield CDs

CD rates at nearly two dozen online banks and credit unions dropped more steadily in the second half of the year compared to the first half. Rates were on a slow decline from January through July, and the anticipation for and eventual Fed rate cuts in September and November accelerated the descent. For the median APYs of four popular CD terms, both short- and long-term yields slipped. The biggest changes since January were for six-month and one-year CDs, both dropping by 100 basis points (1 percentage point).

In contrast, rate drops from January through July were 20 basis points at most. Shorter-term rates generally remain higher than longer-term rates.

CD rate trends 2024: higher short-term CDs

The trend of shorter-term CD rates being higher than longer-term CD rates continues, both for national averages and among high-yield CDs. While seeing CD rates around 4% can be nice, the term length is also important. You earn less interest with a six-month CD than a one-year CD with the same rate.

Overview: high-yield and national CD rates

Online-only banks and credit unions continue to have the most competitive interest rates on certificates of deposit, but these high-yield CD rates are now dropping faster than they did during the first half of 2024 thanks to the Fed cutting the federal funds rate. See where rates are going in our CD rate forecast.

» Learn more: how Fed rate increases affect CDs

National average CD rates have also been higher than they’ve been for most of the past decade, though they remain far lower than CDs at online institutions. The gradual rise of online high-yield CD rates started in July 2021, after a relatively low-rate environment in 2020 and early 2021. After the Fed rate cut in September, CD rates across the industry have dropped even more. (See more details about historical CD rates to see more context.)

High-yield CD rates today can be several times the national average of 1.35% APY for five-year terms and the national average of 1.84% APY for one-year terms. Unlike regular savings accounts, most CDs have fixed rates, so you can lock in a higher rate while it lasts.

Here's a look at current CD rates at some online banks and credit unions.

Current CD rates: high-yield and national averages by term

Here’s a sample of three high-yield CD rates per term, compared to the national average, at various online banks and credit unions.

» Want to see a wider pool of high rates? See our list of the best high-interest accounts

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