- You can earn up to 4.65% APY with today’s best CDs.
- Rates have been falling for months and are expected to continue falling.
- Opening a CD now allows you to lock in a high APY and protect your income from further rate reductions.
If you are considering opening a certificate of deposit, now is the time to do so.
Today best CDs offer up to 4.65% annual percentage yield, or APY, more than double the national average for certain terms. But APYs have been falling since the Federal Reserve cut interest rates at its last three meetings. And with experts expecting more discounts this year, the sooner you open a CD, the higher the APY you can lock in.
“I wouldn’t bet that rates would rise much in the near term, so I’d pull the trigger now if fixed income was a priority,” said Noah Damsky, CFA, director of Marina Heritage Advisors.
Here are some of the highest CD rates currently and how much you could earn by depositing $5,000.
The best CD prices of the day
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.65% | Community-Wide Federal Credit Union | $114.93 |
| 1 year | 4.45% | Community-Wide Federal Credit Union | $222.50 |
| 3 years | 4.15% | America’s first credit union | $648.69 |
| 5 years | 4.25% | America’s first credit union | $1,156.73 |
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get the best rate from CNET’s partners in your area.
Why now is the time to open a CD
CD rates may still be attractive, but the days of sky-high APYs are over. APYs have been falling for months following a series of Federal Reserve rate cut. The Fed doesn’t directly set CD rates, but banks tend to follow its decisions. When the Fed cut rates, banks reduced APYs on products like CDs and savings accounts and vice versa.
To combat inflation in the COVID era, the Fed raised rates 11 times starting in March 2022, and CD rates have skyrocketed, reaching 5.65% APY for the banks we follow on CNET. They have fallen considerably since then, particularly in recent months, as the slowdown in inflation has pushed the Fed to reduce rates at its last three meetings. With experts expecting further rate cuts from the Fed in 2025, taking advantage of one of today’s best APYs can protect your income from further cuts.
How CD prices have changed since last month
| Term | CNET average APY on December 13, 2024 | CNET average APY on January 13, 2025 | Change |
|---|---|---|---|
| 6 months | 4.15% | 4.05% | -2.41% |
| 1 year | 4.08% | 4.01% | -1.72% |
| 3 years | 3.52% | 3.50% | -0.57% |
| 5 years | 3.46% | 3.45% | -0.29% |
What to look for when comparing CDs
A competitive APY is important, but it’s not the only thing to consider. To find the right CD for you, also consider these factors:
- When you need your money: Early Withdrawal Penalties can eat into your interest income. So make sure you choose a duration that fits your savings schedule. Alternatively, you can select a CD without penaltyalthough the APY may not be as high as you would get with a traditional CD of the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account – usually between $500 and $1,000. Others don’t. The amount of money you need to put aside can help you narrow down your options.
- Costs: Maintenance fees and other costs can eat into your income. A lot online banks do not charge fees because their overhead costs are lower than banks with physical branches. Still, read the fine print of any account you’re evaluating.
- Federal deposit insurance: Make sure that any bank or credit union you plan to be a member of the FDIC or NCUA, so your money is protected if the bank goes bankrupt.
- Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that is responsive, professional and easy to work with.
Methodology
CNET examines CD pricing based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions, and financial companies. We rate CDs based on APYs, product offerings, affordability, and customer service.
Current banks included in CNET’s weekly CD averages include Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct , Quontic, Rising Bank, Synchrony, EverBank, People’s Bank, Indiana’s First Internet Bank, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APY as of January 14, 2025, based on the banks we follow on CNET. Earnings are based on APYs and assume interest is compounded annually.
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