Best CD Rates for December 2024 [Up to 4.65%!]

The highest CD rates today are typically offered by online banks, credit unions and online brokerage firms. Benzinga found that Bread Savings and America First Credit Union offer the best CD rates for this month.

A Certificate of Deposit (CD) is a secure investment option that provides guaranteed interest rates and is protected by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA). Investors lock in funds for a set term to achieve competitive, predictable returns without risk. Following a recent federal funds rate cut by the Federal Reserve, CD rates may vary as banks adjust their rates. Longer-term CDs usually offer higher interest rates compared to savings accounts or money market accounts, making them ideal for conservative investors or those seeking stable returns.

Benzinga reviewed the top financial institutions offering the best CD rates for this month. Start earning more with higher interest rates on your Certificates of Deposit today!

Quick Look at the Best CD Rates Today:

• Best for High Yield CD: Newtek Bank
• Best for Low Deposits: Bread Savings
• Best for Credit Union Membership: America First Credit Union
• Best for Government Employees: Pentagon Federal Credit Union
• Best for Simplicity: Live Oak Bank
• Best for Student Loans and Banking: Sallie Mae Bank
• Best for Low Fee Banking: Crescent Bank

Best CD Rates for December 2024

Explore some of the top banks and credit unions offering the best CD rates that can help you maximize your earnings.

1. Best for High Yield CD: Newtek Bank

Newtek Bank offers a variety of Certificate of Deposit (CD) options that cater to both individual and business clients looking for secure and competitive savings solutions. With attractive interest rates and flexible terms ranging from six months to five years, Newtek Bank's CDs provide a reliable way to grow savings without the risks associated with more volatile investments. As a federally insured financial institution, customers can feel confident that their deposits are safe while they take advantage of the opportunity to earn a higher return on their idle cash.

Here are the current CD rates from Newtek Bank:

Why We Picked It: The combination of great CD rates, flexibility, and excellent customer support makes Newtek Bank a top choice when opening a Certificate of Deposit account.

2. Best for Low Deposits: Bread Savings

Bread Savings, formerly known as Comenity Direct, offers a suite of online CDs with rates that are worth considering for terms ranging from three months to five years. It requires a $1,500 minimum opening deposit and charges no monthly or opening fees.

Here are the current CD rates from Bread Savings:

In addition, Bread Savings offers higher renewal rates for 1,2, and 3 year CD customers, an additional 0.05% to the regular annual percentage yield (APY).

Bread Savings also offers a user-friendly online platform that makes managing your accounts easy and convenient. With 24/7 access to your accounts, you can easily track your savings and make deposits or withdrawals as needed.

Why We Picked It: Bread Savings offers competitive interest rates with low minimum deposit. This means that your savings will grow faster over time and you will be able to reach your financial goals sooner.

3. Best for Credit Union Membership: America First Credit Union

America First Credit Union offers a variety of financial products to help their members achieve their financial goals, including their Certificate Accounts. The minimum opening balance and minimum earning balance for all CD terms is $500. Your earnings are insured for up to $250,000 by the National Credit Union Administration (NCUA).

Here are the current CD rates from America First Credit Union:

Why We Picked It: With flexible terms, low minimum deposit requirements, competitive interest rates, and federal insurance protection, America First Credit Union offers a safe and reliable investment choice for those looking to grow their wealth steadily over time.

4. Best for Government Employees: Pentagon Federal Credit Union

Pentagon Federal Credit Union uses the term Money Market Certificate to refer to what banks call a Certificate of Deposit. You can open a Money Market Certificate for terms ranging from 6 months to 7 years. While PenFed may offer a lower Annual Percentage Yield than some other banks or credit unions, the convenience and ease of opening a Money Market Certificate with just $1,000 may still make it a viable option for some savers.

Here are the current CD rates from Pentagon Federal Credit Union:

Why We Picked It: PenFed Credit Union offers long term CDs of up to 7 years, one of the longest in the market. With terms of up to 7 years, investors have the opportunity to lock in a high interest rate for an extended period, providing a stable and predictable rate of return on their investment.

5. Best for Simplicity: Live Oak Bank

If you're someone who values simplicity and competitive APYs when it comes to your banking needs, Live Oak Bank might be the right choice for you. With a focus on offering straightforward and user-friendly features, Live Oak Bank is known for its savings account and Certificate of Deposit account options.

Here are the current CD rates from Live Oak Bank:

Live Oak Bank operates entirely online, meaning that they do not have any physical branches or ATMs. While this can be convenient for those who prefer online banking, it may not be the best option for customers who prefer the option of in-person banking.

The minimum amount to open a Certificate of Deposit account with Live Oak Bank is $2,500 and the maximum is $250,000 per account.

Why We Picked It: Live Oak Bank offers a wide range of CD terms to choose from. Whether you want a short-term or long-term CD, Live Oak Bank has options for every financial need. Plus, it has no monthly maintenance fee, allowing users to save more.

6. Best for Student Loans and Banking: Sallie Mae Bank

Sallie Mae is a well-known name in the world of student loans, but did you know that they also offer competitive Certificates of Deposit through Sallie Mae Bank? With terms ranging from six months to five years, customers can take advantage of their competitive APYs from 3.60% to 4.10%. The minimum opening deposit is $2,500. The minimum balance to earn the annual percentage yield is also $2,500.

Opening a Certificate of Deposit account with Sallie Mae Bank is a simple and straightforward process. You can easily apply online and fund your CD with a transfer from an external bank account or by mailing in a check. Sallie Mae Bank also provides online account management tools, making it convenient to track your earnings and manage your CD.

Here are the current CD rates from Sallie Mae Bank:

Why We Picked It: With competitive interest rates, wide variety of CD terms and insurance coverage from the Federal Deposit Insurance Corporation (FDIC), Sallie Mae Bank CDs are worth considering for anyone looking to earn a guaranteed return on their investment.

7. Best for Low Fee Banking: Crescent Bank

Crescent Bank offers a wide range of online CDs that can help you grow your savings over time, from one to five years, with the annual percentage yield ranging from 2.95% to 3.30%. By opening a Certificate of Deposit account with Crescent Bank, you can enjoy a fixed interest rate for a specified period of time and no maintenance fees. Its minimum opening deposit of $1,000 is relatively lower than other financial institutions.

Here are the current CD rates from Crescent Bank:

Crescent Bank also offers other financial services and products including savings and checking accounts, money market accounts and IRAs.

Why We Picked It: With their competitive CD rates and easy application process, Crescent Bank makes it simple to start investing in your financial future. You can easily open a Certificate of Deposit account online or at a local branch, access your account online and once your investment matures, you can choose to reinvest or withdraw your funds with ease.

How to Choose the Best CD for You

If you’re a disciplined individual, have a set deposit amount and a specific long-term goal, CDs might be perfect for you. Here are some things to keep in mind to help you choose the best Certificate of Deposit based on your financial goals:

• Consider the term length: CDs come in various term lengths, ranging from as short as a few months to as long as several years. The longer the term length, the higher the interest rate typically offered. Consider your financial goals and when you will need access to your funds before choosing a CD with a specific term length.
• Compare interest rates: When looking for the best CD interest rates, they depend on the term length and the financial institution offering the CD. It's important to compare interest rates from different banks or credit unions to ensure you're getting the best rate possible. Keep in mind that online banks often offer higher interest rates on CDs compared to traditional brick-and-mortar banks.
• Understand early withdrawal penalties: Before committing to a Certificate of Deposit, make sure you understand the early withdrawal penalties associated with the account. If you need to access your funds before the CD matures, you may be subject to a penalty, which can eat into your earnings. Some CDs have more lenient withdrawal penalties than others, so be sure to read the terms and conditions carefully.

It is important to note that a CD is a savings vehicle, not an ATM machine. If you’re one of those individuals who treats your savings account like a checking account, it’s important to realize that money (in both of those accounts, to be clear) are actually supposed to be reserved for access later.

Pros and Cons of a Certificate of Deposit

Before committing your funds to a Certificate of Deposit, it's essential to understand both the advantages and disadvantages that come with this investment choice. Here are some pros and cons to keep in mind to help you make an informed decision about whether they align with your financial strategy.

Can I Get My Money Out of a CD Early?

It’s definitely possible to get your money out of a CD early, though you’ll have to evaluate whether it’s beneficial for you to do so or not. Banks charge penalties when you cash in your CD early. Some good examples of needing to get money out of your CD early include:

• You’ve found an investment with a higher return and approximately the same amount of risk.
• The penalty isn’t huge enough to prevent you from taking out your CD.
• You can alter your saving strategy with other investment products.
• You’re having a financial emergency.
• You need the money for something important, such as the down payment for a house.

The earlier you withdraw, the less interest you’ll earn. CD withdrawal rules and conditions are not the same at every bank or credit union, so be sure you’re aware of what the bank or credit union will charge if something rises to the surface.

Alternatives to CDs

Here are alternative options available for those who are looking for different ways to invest their money.

• High-yield savings accounts: These account offer a higher interest rate than traditional savings accounts, are usually offered online, and provide easier access to funds compared to CDs in case of emergencies.
• Money market accounts: These accounts also offer high interest rates, with check-writing privileges and debit card access. They are low-risk investments and provide a safe place to park savings.
• Municipal bonds: Municipal bonds are issued by state and local governments to fund public projects. They are generally considered to be low-risk investments and provide tax-exempt income, making them an attractive option for investors in higher tax brackets.

Save with a CD Today

On a side note, you may note that the interest rates proposed here, while the highest APY of all CDs to date, aren’t as high as you’d like. While it’s true that in the grand scheme of all the investment possibilities, CDs rank on the low end. Remember, too, that a CD term can impact the rate you might get.

CDs are constantly battling inflation with relation to their percentage yield, but if you’re looking for a low-risk investment that beats savings accounts or money markets (especially to protect that emergency fund) then CDs really can have a place in your overall investment strategy.

Frequently Asked Questions