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- Top CDs now boast APYs as high as 4.65%.
- APYs are likely to continue to fall if the Fed continues to cut rates in the coming months.
- Your APY is fixed when you open a CD, so opening one now can boost your earnings.
The earlier a certificate of deposit is opened, the more interest can be earned.
TODAY best CDs offers annual percentage yields, or APYs, as high as 4.65%. But APYs fell after the Federal Reserve cut rates at its last three meetings, and experts expect more cuts in the coming months. So, the longer you wait to unlock a CD, the lower the APY you can lock in.
“I wouldn’t bet on rates moving higher in the near term, so I would pull the trigger now if fixed income is a priority,” said Noah Damsky, CFA, Principal at Marina Wealth Advisors.
Here are some of the highest CD rates today and how much you can make by depositing $5,000.
The best CD rates today
| TERMS | Maximum APY* | bank | Estimated income |
|---|---|---|---|
| 6 months | 4.65% | CommunityWide Federal Credit Union | $114.93 |
| 1 year | 4.45% | CommunityWide Federal Credit Union | $222.50 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
Experts recommend comparing rates before opening a CD account to get the best possible APY. Enter your information below to get the best CNET partner rates for your area.
Why now is the time to open a CD
CD rates have been falling for months in response to a series of The Federal Reserve’s rate cut. The Fed does not directly set CD rates, but its federal funds rate determines how much it costs banks to borrow and lend to each other. When this rate is raised, banks tend to raise APYs on CDs and savings accounts to attract new customers and improve their cash flow. When this rate is cut, banks drop these APYs.
The Fed has raised rates to combat inflation during the COVID era, and CD rates have risen, reaching 5.65% APY for the banks we track at CNET. They have been falling since then, especially in recent months as cooling inflation has caused the Fed to cut rates at its last three meetings. But the highest APY — 4.65% — is more than double that national average for some term.
And with experts expecting more Fed rate cuts in 2025, locking in one of the current APYs can protect your income from further declines. If you are thinking of keeping your funds in a CD, doing so ASAP will help you improve your income potential.
“While some banks may still offer competitive rates to attract deposits, the overall trend may be lower rates for now, especially if the Fed stays on its current course of action. of inflation while avoiding further economic slowdown,” he said.Taylor Kovar, CFP, founder and CEO of 11 Financial.
How have CD rates changed over the past week
| TERMS | The CNET average APY last week | This week’s CNET average APY** | Weekly change*** |
|---|---|---|---|
| 6 months | 4.09% | 4.09% | There is no change |
| 1 year | 4.03% | 4.03% | There is no change |
| 3 years | 3.50% | 3.50% | There is no change |
| 5 years | 3.45% | 3.45% | There is no change |
What to consider when comparing CDs
A competitive APY is important, but it’s not the only thing you should consider. To find the right CD for you, also weigh these factors:
- If you need your money: Early withdrawal penalties can eat into your interest income. So be sure to choose a term that fits your savings timeline. Alternatively, you can choose a CD without penaltyalthough the APY may not be as high as you would get on a traditional CD over the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account – typically, $500 to $1,000. Some don’t. How much money you have to spare will help you narrow down your options.
- Fee: Maintenance and other fees can eat into your income. many online banks do not charge fees as overhead costs are lower than banks with physical branches. However, read the fine print for any account you are evaluating.
- Federal deposit insurance: Make sure any bank or credit union you consider becoming a member of the FDIC or NCUA to protect your money if the bank fails.
- 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.
procedures
CNET checked CD rates based on the latest APY information from issuer websites. We review CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
Current banks included in CNET’s weekly CD average 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, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APYs as of January 9, 2025, based on banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Dec. 30, 2024, to Jan. 6, 2025.
