But you could still earn up to 4.70% APY by choosing the right CD.
That’s more than twice the national average for some terms.
The federal funds rate is the overnight lending rate banks charge one another to borrow funds.
When the federal funds rate goes down, rates on consumer products like CDs andsavings accountstend to follow.
The Fedcut rates in September, its first rate cut since March 2020.
Since then, CD and savings rates have fallen faster.
This week, it’s 4.14%.
“Rates are still high on a historical basis.”
HYSAs are better suited for things like youremergency fundbecause you might take out cash at any time without penalty.
We evaluated CD rates from more than 50 banks, credit unions and financial companies.
We evaluate CDs based on APYs, product offerings, accessibility and customer service.
*APYs as of Dec. 13, 2024, based on the banks we track at CNET.
Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Dec. 2, 2024, to Dec. 9, 2024.
