AOL Blog Best CD rates today: Final call on rates of up to 4.70% APY for guaranteed savings into 2025 — Oct. 24, 2024

Yields on certificates of deposit continue to slide in the wake of the Federal Reserve's half-point interest rate cut last month. Yet CDs are still among the best ways to stay ahead of lower rates, offering a safe, passive way to leverage today's highest yields into your savings strategy — up to 10 times the national savings average — long after rates drop, thanks to fixed rates that protect your money from the market's ups and downs.  Not sure now's the time to lock up your money into one long-term CD? A CD ladder is a smart way to balance short-term gains with long-term stability, spreading out your investment across staggered maturity dates for the strongest savings potential with regular access to your money through 2025 and beyond. But it's final call: With another Fed cut on the horizon, rates won't be as high as they are right now. Here's where to lock in the highest yields on CDs of six months and longer with signup in minutes. 💰 Today's best savings rates: Bank smarter and grow your money faster at up to 5.25% APY right now Best CD rates for October 24, 2024 Today's best rates of returns are found at FDIC-insured digital banks and online accounts paying out up to 4.70% APY with low or no minimums at GP Federal Credit Union, Capital One and other trusted providers as of Thursday, October 24, 2024. Select APY to sort by yields, or sort by term to find the best fit with your financial goals. Online-only banks and digital accounts may not sound as familiar as bigger names, though each is FDIC-insured or partners with an FDIC-insured bank to offer deposit accounts that are protected for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) — just like those at your neighborhood bank. Dig deeper: How to protect your money from Fed rate cuts Are CDs still worth it today? Although the Federal Reserve plans to continue cutting its benchmark interest rate, certificates of deposits are still a highly valuable choice for many savers. This is true for various CD terms, despite the varying yields they offer. You may have noticed that long-term CDs have lower rates than short-term ones. This is because banks expect rates to continue going down in the future, so they aren't offering as much for longer commitments. But here's why CDs are still worth it today: They let you lock in today's rates, which are pretty good by historical standards. When the Fed cuts rates again, savings accounts' APYs will follow, but your CD rate will stay the same until it matures. This guaranteed return means you can lock in on a two-year CD to continue earning today's elevated APYs for 24 months from now. That's why the best strategy is to mix and match a number of short-term CDs (six months to one year) with long-term CDs (two to five years). This way, you get the highest yields on the short run while maintaining a stable stream of passive income on the long run. Dig deeper: Thinking about investing in a CD? Here's why now is the 'sweet spot,' says this expert How a certificate of deposit works A CD is a type of savings or deposit account that's offered by banks, credit unions and other financial institutions. Unlike a traditional savings account, a certificate of deposit holds your money for a fixed period of time — terms of one month to five years or longer — paying out your initial deposit and interest you've earned after the term expires or "matures." Typical CD rates are fixed, which means you're guaranteed a rate of return that doesn't change. While you can't add to or access your cash until the CD matures, the trade-off is a safe, stable way to earn a much higher yield than you'd find with a traditional savings account. Dig deeper: How CDs work — including 7 types for boosting your savings Traditional CD rates The Federal Deposit Insurance Corporation tracks monthly average interest rates paid on certificates of deposit and other savings accounts. Created by Congress, the FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts. Here's how FDIC national deposit rates on a $10,000 minimum deposit compare between September and October 2024, showing all terms trending down. The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts. Dig deeper: Best low-risk investments for retirees with steady returns on your nest egg CD rates in the news CD rates strongly track with the key interest rate set by the Federal Reserve, the U.S.'s central bank. This Fed rate is the benchmark that affects rates on deposit accounts, loans, mortgages, credit cards and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield accounts and money market accounts — surging to 4% and higher today to accelerate your savings. After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate after its September 2024 policy meeting. September 18, 2024: Fed lowers benchmark rate for first time since March 2020 At the conclusion of its sixth rate-setting policy meeting of 2024 on September 18, 2024, the Federal Reserve announced it was lowering the federal funds target interest rate by 50 basis points to a range of 4.75% to 5.00% — the first cut since the Fed began raising rates in March 2022 — from a 23-year high of 5.25% to 5.50%. A half-point cut isn’t typical of the Fed’s decisions, which historically call for measured quarter-point reductions, but points to an urgency in keeping the economy healthy, easing a slowdown in the labor market and averting a recession. In its post-meeting statement, the Federal Reserve said it was lowering the target range "in light of the progress on inflation and the balance of risks," acknowledging it's "gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance." Economists estimate at least two additional rate cuts this year with an additional four cuts anticipated in 2025. What to expect at the Fed's November policy meeting It's widely expected the Federal Reserve will announce an additional cut to the federal funds rate at its next policy meeting on November 6 and November 7, 2024. The CME FedWatch Tool, which measures market expectations for Fed fund rate changes, projects an 95% chance the Fed will cut rates by a quarter percentage point to a range of 4.50% to 4.75% at its November meeting. Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate. Signs of cooling inflation paved the way for September’s first rate cut in four years, with economic data indicating a continued decline from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023. An eagerly awaited jobs report released October 4 showed much stronger job growth than projected and a drop in the unemployment rate. Employers added 254,000 new jobs to payrolls in September, more than the 150,000 expected, with the unemployment rate down to 4.1% from 4.2% in August. The fresh employment data is good news for the economy amid positive twin inflation reports. The consumer price index released on October 10 showed inflation cooling to its lowest level since February 2021, with a 2.4% year-over-year increase in consumer prices in September, down from 2.5% year over year in August and closer to the Fed's 2% target. The producer price index released on October 11 reported no change in wholesale prices — or the prices manufacturers pay to producers of goods and services — in September from August, together with consumer pricing data, pointing to easing inflation that peaked two years ago and paving the way for the Fed to make another quarter-point cut in November. At a conference in Nashville on September 30, Federal Reserve Chair Jerome Powell said "the economy is in solid shape," and that the Federal Reserve "intend(s) to use our tools to keep it there," making its decisions "meeting by meeting." He added, "This is not a committee that feels like it's in a hurry to cut rates quickly.“ The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Thursday, November 7, 2024, at 2 p.m. ET. Dig deeper: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances How to compare CDs When choosing the best certificate of deposit for your budget, compare these key factors against your specific savings or financial goals. Term length. A CD is ideal for saving toward a specific goal with money you’re not likely to need until the account matures. Look to shorter terms for saving toward, say, a family holiday or home renovation. Terms of one to five years or longer can help you lock in today’s highest APYs before interest rates inch lower. Rate of return. Look for the highest APY for the term you’re interested in. The APY is the amount of interest the CD earns in a year — including compounding. Unlike a savings account, CD rates are fixed, meaning they won’t change over the life of your term. Minimum deposit. While you can find CDs without minimum starting deposits, some CDs require $100 to $1,000 to open an account. Generally, if you have the money for a higher initial deposit, you can earn a higher APY — just be sure that amount isn’t a hardship on your budget. Type of bank or financial institution. Today’s best interest rates are offered by digital banks, wi