It’s okay, it’s okay, it’s gone — it’s the sound of minutes ticking away with CD rates above 4%. For what? The Federal Reserve has begun cutting its benchmark interest rate, and another cut is strongly expected this week. This rate does not directly inform the APYs of consumers’ bank accounts, but they tend to move together.

If you’re looking forward to opening a CD this month, now is the time. Here’s a look at some great CDs you should consider this November.

1. Discover® Bank CD 12 months

You may know Discover best for its great credit card offers, but it’s also a full-service online bank. In addition to checking and savings accounts, Discover also offers CDs in a variety of terms ranging from three months to 10 years. Its best APY is on its 12-month CD – as of this writing, you can lock in a rate of 4.10%.

There’s also no minimum opening deposit required for a Discover® Bank CD, so you can start with as little as you want. Or if you’re building a CD ladder and don’t have a lot of money to spread across multiple CDs, you could potentially make this 12-month CD one of your ladders.

Our picks for the best high-yield savings accounts of 2024

American Express® High Yield Savings APY 4.00% Pricing information Annual percentage yield of 4.00% as of November 5, 2024 Member of the FDIC.	APY 4.00% Pricing information Annual percentage yield of 4.00% as of November 5, 2024	Min. earn $0
Capital One 360 ​​Performance Savings APY 4.00% Pricing information Check the Capital One website for the most up-to-date pricing. The Advertised Annual Percentage Yield (APY) is variable and accurate as of October 23, 2024. Rates are subject to change at any time before or after account opening. Member of the FDIC.	APY 4.00% Pricing information Check the Capital One website for the most up-to-date pricing. The Advertised Annual Percentage Yield (APY) is variable and accurate as of October 23, 2024. Rates are subject to change at any time before or after account opening.	Min. earn $0
CIT Platinum Savings APY 4.70% APY on balances of $5,000 or more Pricing information 4.70% APY on balances of $5,000 or more; otherwise, 0.25% APY Min. earn $100 to open an account, $5,000 for maximum APY Member of the FDIC.	APY 4.70% APY on balances of $5,000 or more Pricing information 4.70% APY on balances of $5,000 or more; otherwise, 0.25% APY	Min. earn $100 to open an account, $5,000 for maximum APY

2. Quontic 12 Month CD

Quontic CDs also stand out among online banks, with excellent digital tools for managing your finances. It offers CDs with durations of three months to five years. The 12-month Quontic CD currently has an APY of 4.00%, and you only need $500 to lock in that rate for next year.

However, make sure you can keep your money in the account for the duration of this 12-month period. Quontic does not play with its early withdrawal penalties. For terms of 12 months or less, you will lose any interest you have earned on your money if you withdraw it before the end of the term.

3. 6-month CD from Prime Alliance Bank

Want a shorter CD length at a great price? Consider Prime Alliance Bank CDs. This CD issuer only requires $500 to open a CD and you can earn 4.90% APY on a 6-month CD.

All of its terms of two years or less are also above 4.00% APY right now, so if you’re considering a short-term CD ladder, it’s worth a look. However, you’ll have to look elsewhere if you need a 3 month CD for your scale – this 6 month CD is its shortest duration.

Are CDs for you?

A valid question! CDs are popular with savers in the higher interest rate environment we’ve been living in in recent years, but they aren’t for everyone. Your saved money should be distributed across different accounts depending on your needs.

Your emergency fund never has a place in a CD, because you might need that money at any time – its literal purpose is to be your home base in a storm of unexpected expenses and financial emergencies. Don’t risk locking it away in a CD, because you might have to pay penalties that would even eat into your principal balance if you had to withdraw early. If you need a new home for your emergency fund, click here for our favorite high-yield savings accounts.

Likewise, money you save for the long term, such as retirement or college for a child who is currently an infant, also has no place in a CD. You’ll likely get much greater returns on that money if you open a brokerage account and invest it instead. The S&P 500 has generated average annual returns of 10% (without accounting for inflation) over the past few decades. Therefore, if you can invest for the long term, you are more likely to do well.

CD rates of 4% or higher are unusual: You probably won’t be able to sustain that kind of CD yield for much longer, and who knows what the future holds?

Where CDs really shine is when you have a set goal with a set timeline. Are you buying a house in a year and want to benefit from a fixed rate on your down payment? A 12 month CD might be perfect for you.

What are you waiting for? Explore your options today!