Savings and CD Rates Today, Thursday, December 11: Small Dip

The one-year high-yield CD average dipped slightly while high-yield savings rates were unchanged from yesterday.

• The average high-yield savings APY is 3.84% (unchanged from yesterday).

• The average 1-year high-yield CD APY is 3.77% (-0.01 percentage point from yesterday).

The national average rates are 0.40% for savings accounts and 1.64% for one-year CDs.

Banks can adjust deposit rates on savings accounts and CDs at any time, but broader shifts to the entire savings landscape tend to be gradual. If you’re shopping for a better yield, compare savings accounts side-by-side and consider locking some funds in a CD if you want to preserve today’s rate for a fixed term.

The Federal Reserve cut the federal funds rate in September, October and December 2025. Each cut kicked off new momentum for banks and credit unions to lower their rates on high-yield savings accounts and CDs. These drops will likely continue at a gradual pace as various institutions change yields at different times based on their need to attract deposits, among other factors.

The next Fed rate announcement will be Jan. 28, 2026. Any rate cut will likely result in further rate drops for savers.

• The average high-yield savings APY is 3.84% (unchanged from yesterday).

High-yield savings rates have dipped, but they remain relatively high (see chart above). The important thing for parking money you’ll need quickly, such as an emergency fund, is to put it in an account that gives you the best yields possible.

• Know that rates can change at any time. No one can predict what your rate will be this time next year. There are no guarantees that you’ll be earning today’s high rates.

• Aim for high-interest accounts today. Even though rates can change at any time, the best savings accounts consistently deliver stronger returns compared to those earning below the national average, no matter whether rates are rising or falling.

Generally, a savings account is your catch-all account for everyday savings. You can add or withdraw money at any time. These accounts are best for short-term needs, savings goals and unexpected expenses. Consider a savings account if:

• You want a higher rate on short-term savings. If you already have a savings account, but you’re earning less than, say, 3.00% APY, consider shopping around.

• Quick access to your cash. You can earn higher rates in other accounts, such as CDs, but if you want to access your money at any time, a savings account is generally the better option.

• The average 6-month high-yield CD APY is 3.97% (-0.01 percentage point from yesterday).

• The average 1-year high-yield CD APY is 3.77% (-0.01 percentage point from yesterday).

• The average 3-year high-yield CD APY is 3.67% (-0.01 percentage point from yesterday).

• The average 5-year high-yield CD APY is 3.69% (unchanged from yesterday).

The relative steadiness of CD rates defined the first eight months of 2025. Three Fed rate cuts in the span of four months brought about a new wave of rate drops. In November and December, banks and credit unions largely left mid-4% rates behind and top CD rates are closer to 4% for short terms and mid- to high-3% range for longer terms.There’s no better time to lock in a CD if you’ve been eyeing them.

• Lock in near-4% rates while they last. We’re in a slow but steadily falling rate environment.

• Use a CD ladder to avoid hedging bets. Open several CDs of different term lengths to take advantage of a wider spectrum of today’s rates. Learn more about CD ladders.

CDs are temporary accounts to boost savings for fixed periods, often ranging from three months to five years. You may decide to get multiple CDs over time or none, depending on your savings goals. Only use CDs for cash you won’t need to access, since CDs usually have early withdrawal penalties that can wipe out some or all the interest you earn. Consider a CD if you plan to:

• Lock up savings that’s earmarked for a big, near-term purchase, such as a car or down payment on a home that you’ll need within five years.

• Keep some savings out of reach for a while, especially a windfall such as an inheritance. A CD doesn’t let you dip into the money before you’re ready.

• Protect wealth from stock market risk. CDs aren’t for long-term growth. They tend to be a tool for those close to or in retirement, or who otherwise need to hold cash safely.