Current CD Rates, July 2024: APYs Slowly Dip - NerdWallet (2024)

FAQs

Current CD Rates, July 2024: APYs Slowly Dip - NerdWallet? ›

Here's a quick comparison: From late January to late July 2024, the midpoint for one-year CD rates at 21 online banks and credit unions dropped from 5.10% to 4.91% annual percentage yield, according to a NerdWallet analysis.

Overall, experts predict CD rates to fall from their recent peak later in 2024 alongside anticipated rate cuts by the Fed.

So if you want to take advantage of today's high APYs and be protected against the Fed's potential rate cuts, now might be the time to lock in a rate on a CD account.

Yes, mortgage interest rates are expected to decrease gradually over the next couple of years. Experts predict the average 30-year rate will settle somewhere between 6.6% to 6.7% by the end of 2024, and then to 6% to 6.2% by late 2025.

Many CDs are paying 5% or more right now. The Federal Reserve could start lowering interest rates later this year, which would push CD rates lower. CD rates may be lower in 2025 than they are today, but that doesn't mean they won't be a great deal.

1. Early withdrawal penalty. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. They typically have to pay a penalty for early withdrawals, which can eat up interest and can even result in the loss of principal.

Paying an early withdrawal penalty could also make sense if your CD is earning considerably less than current interest rates. For example, if you have a long-term CD earning a 2% APY, and new CDs offer APYs in the 5% range, you should consider cashing out your long-term CD as it could mean earning 3% more on your cash.

CDs can be a smart financial move at times, but not so great at others. In the past, other investments earned higher rates than even the best CDs could earn. But, in today's high-interest-rate environment, CDs might be a great option. Here are the pros and cons of CD investing in 2024.

Are there any 7% CDs? ›

Right now, there aren't any financial institutions offering 7% interest on a CD.

A jumbo CD is a certificate of deposit that traditionally requires a minimum deposit of $100,000. Some banks and credit unions offer jumbo CDs with lower minimums, such as $25,000. If that sum is far higher than the right amount for you to put into CDs, you can skip these CDs.

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

There is one credit union paying 6% APY on a CD, Financial Partners Credit Union. You'll have to meet certain eligibility requirements to join this credit union, though.

If you don't need access to your money right away, a CD might be a good savings tool for you in 2024 while average interest rates remain high. CD interest rates are high in 2024 — higher nationally, on average, than they've been in more than a decade, according to Forbes Advisor.

And you typically don't have to pay taxes on your earnings until you make withdrawals in retirement. To defer taxes on CD interest until retirement, you can open a CD within a tax-deferred retirement account — whether it's an employer-sponsored plan or an IRA.

Absolutely! Although streaming and digital music are the most popular ways to listen these days, lots of people prefer the collectable nature and superior sound quality of CDs. This demand means that the vast majority of CDs are still worth something - and the amount you can make soon adds up!