The Best CD Rates for November 2024

The Federal Reserve lowered interest rates recently, cutting its key rate by nearly a percentage point. Interest rates on CDs and other savings tools that use the federal funds rate as a baseline have dipped as well. Though inflation ticked up slightly in October, ending the month at 2.6%, the central bank is still widely expected to reduce the federal funds rate at its final meeting of the year on Dec. 18. 

The Fed’s next steps remain uncertain, especially in light of Donald Trump’s return to the White House; economists predict his planned tariffs and tax cuts could push inflation and interest rates higher, potentially complicating the Fed’s plans. Buying a CD now could help you lock in today’s rates for months or years, especially if you think they might drop further. 

What are the best CD rates?

The two biggest factors that impact the rate you can earn are how much money you want to put into a CD and the amount of time you're willing to let the bank hold on to that money. Some banks have minimums to open a CD account — $1,000 is common — while others have a much lower threshold or none at all.

"Typically the more money you're able to invest and the longer the term, the better the rate you're going to get," says Shannon Skopak, assistant vice president at Affinity Federal Credit Union. In addition, many banks offer limited-time promotional CDs with even higher annual percentage yields, or APYs.

To help you find the best yields you can get today, here are some of the highest APYs currently on the market for fixed-rate CDs with a variety of maturity terms.

Best 6-month CD rates

• UBI Federal Credit Union: 4.50% ($1,000 minimum deposit)
• Twin River Bank: 4.47% ($500 minimum deposit)

Read more about 6-month CDs

Best 1-year CD rates

• Northwest Bank: 4.35% ($100 minimum deposit)
• First National Bank: 4.34% ($1,000 minimum deposit)

Read more about 1-year CDs

Best 5-year CD rates

• East Texas Professional Credit Union: 4.11% ($1,000 minimum deposit)
• Freedom Credit Union: 4.07% ($500 minimum deposit, or $250 for applicants under 25 years of age)
• Telco Triad Community Credit Union (Bump-up CD): 4.25% ($500 minimum deposit)

Read more about 5-year CDs

These CD rate picks reflect the best available CD rates we found for fixed-rate CDs on DepositAccounts and CD Valet, which together track hundreds of thousands of rates at banks and credit unions all across the country, and Buy Side from WSJ's own research.

You can buy CDs at national banks (although they historically aren't known for having the best rates), your local hometown bank, credit unions and online banks.

CD rate outlook

The Federal Reserve cut rates in September and November, and we're already seeing CD rates drop. How far they have to go remains in question. Investors are largely expecting the federal funds rate to drop to a range between 4.25% and 4.50% by the year’s end, according to CME Group forecasting. In other words, it may be prudent to act now to lock in a higher CD rate.

The Fed's benchmark federal funds interest rate has a direct impact on the APYs banks offer on CDs. Savers using shorter-term instruments like 6- and 12-month maturities could still find top APYs close to 5.00%, particularly at digital banks and credit unions.

How to shop for CDs

The unusual interest rate environment means you need to look closely to make sure you are getting the best possible CD deal. "Consumers need to spend a little bit of time and due diligence," says David Frisch, president of Frisch Financial Group.

Look at rates for CDs of the same term — say, 12 or 24 months — so you can compare apples to apples. A bank that offers the best rate on a one-year CD might not be nearly as competitive on a two-year CD, for instance. If you think you might need to access your money sooner rather than later, look for shorter-term CDs or ones that don't charge a penalty for early withdrawal.

Also keep in mind that when it comes to CD rates, high APY isn't the only factor you need to consider: Look for a CD with a minimum you can afford (or no minimum at all), and figure out how long you're comfortable having your money locked up. Also, check to make sure there aren't any monthly fees or other charges that could erode your earnings. Be aware of early withdrawal penalties too — some institutions are more flexible than others.

Callable CDs

When comparing CDs and rates, pay particular attention to whether the CD is callable. This means the issuing brokerage firm or bank can close the CD before its full term expires. In exchange, the APY offered may be higher. But a CD with a call feature is more likely to be redeemed early if interest rates drop suddenly — like they did in August.

Credit union CDs

As we've observed in recent months, a number of the best CD rates available right now are offered by credit unions. Keep in mind, though, that credit unions require you to become a member first — which might entail joining an affiliated charity or nonprofit for a nominal cost if you're not within the geographic scope of that credit union's brick-and-mortar footprint.

In addition, many credit unions require you to open a checking or savings account to open a CD. One more thing to note: CDs offered by credit unions are usually referred to as "share certificates." From your point of view as a customer, however, it's the same as a CD offered by a bank, and your money is protected up to $250,000 by the Credit Union National Administration.

Variable-rate CDs

Like credit union CDs many variable-rate certificates also offer high rates. As the name suggests, yields on these certificates (also called flex-rate CDs) fluctuate in response to the movement of benchmark interest rates, a rate structure that allows customers to capture higher returns when rates are rising, but can be riskier if rates are predicted to fall because your rate of return isn't locked in and could drop.

What is a CD?

Certificates of deposit, or CDs, are similar to savings accounts in that you can park your money in one, risk-free, and earn interest on that deposit. One important distinction is that, with CDs, you have to agree not to touch that money for a designated time, anywhere from a few months to five years or more, depending on which product you pick. The other difference is that the best CD rates can be higher — sometimes by a lot — than savings account rates.

Like savings accounts, CDs offer the security of insurance from Federal Deposit Insurance Corp. (FDIC), says Clark Kendall, chief executive of wealth-management firm Kendall Capital. "They offer the safety of principal," he says.

CD terms you should know

There are a handful of terms you need to know to evaluate the best CD for your needs.

Annual percentage yield: When you ask, “What are CD rates?” you’re really asking what is the annual percentage yield. Often abbreviated to APY, this is the rate of return you’ll earn on your money, taking compounding into effect.

Early withdrawal penalty: Most CDs penalize you if you want to withdraw your money before the maturity date. This might be a flat fee, although typically the penalty fee is a percentage of the accrued interest, all the way up to 100%. For shorter-term CDs in particular, it isn’t uncommon to have to forfeit all of the interest.

Flexible-rate CD: CD rates are fixed, but some banks offer CDs that give you a one-time opportunity to raise your APY if interest rates have risen significantly since you opened the account.

IRA CD: Ordinary CDs are funded with money you have already paid taxes on, and the interest you earn is subject to federal and state income tax. Many banks also offer individual retirement accounts where the funds are invested in CDs. There are both traditional IRA CDs and Roth IRA CDs, governed by the same IRS regulations as IRAs invested in other types of assets.

Laddering: Laddering CDs is a strategy in which you take the total sum of money you want to put in CDs, split it into equal amounts and put each into a CD with a different maturity date. For instance, if you want to put $3,000 into CDs using laddering, you could put $1,000 into a three-month CD, $1,000 into a six-month CD and the remaining $1,000 into a one-year CD. When those CDs mature, you can roll them into new ones that retain a staggered maturity schedule.

Maturity date: The term of a CD refers to how long you’ll need to keep your money locked up (such as three months, or a year.) The maturity date is when that term ends. At that point, you can reclaim your money and collect the accrued interest it has earned. CDs come in a range of maturities. Some terms are as short as a month (although returns are often so low that you’d be better off just parking your money in a high-yield savings account), while others stretch as long as a decade.

No-penalty CD: These CDs usually have somewhat lower APYs, but they waive the early withdrawal penalty and let you keep the interest that has accrued.

Share certificate: This is banking legalese that indicates the certificate is offered by a credit union (which is a nonprofit institution, as opposed to a for-profit bank) and insured by the Credit Union National Association rather than the FDIC. From your point of view as a saver, whether you have a share certificate versus a CD doesn’t really make a difference.

How to use CDs in your portfolio

CDs are a good tool to have in your money-management tool kit, especially if you use laddering. As a guideline, personal finance experts suggest having six months’ worth of living expenses in savings as an emergency fund, but savings accounts often earn minimal interest. CDs have better returns, but an emergency fund won’t help you if it’s tied up in a CD that doesn’t mature for months. Staggering the maturity dates at intervals via CD laddering ensures that you will always have some of your savings available to you within a short period.

“With this laddering concept, you don’t necessarily need six months of expenses [because] you don’t need all the money at the same time,” Frisch says. You should keep enough money in a savings account — you can search for a high-yield savings account to maximize the amount of interest you can earn — to cover the period until your next CD matures.

You’re likely to forfeit a slightly higher APY than you can earn with a single, larger CD and a longer-duration maturity date, but that difference will almost certainly be smaller than the amount of an early withdrawal penalty. “You’re giving up some yield but getting the flexibility,” Frisch says.

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