If you’re looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often offer higher interest rates than traditional checking and savings accounts. However, CD prices can vary widely. Learn more about CD pricing today and where to find high-yield CDs with the best rates available.
CD rates are relatively high compared to historical averages. This is especially true for shorter durations (around a year or less). For short-term CDs, you can expect the best deals to hover around 4% APY. Longer-term CDs are a bit lower, however.
Today’s highest CD rate of 4.35% APY, offered by Synchrony on its 13-month CD. There is no minimum opening deposit required.
Here’s a look at some of the best CD prices available today from our verified partners:
The Federal Reserve has begun lowering the federal funds rate in light of slowing inflation and an overall improving economic outlook. It reduced its target rate three times at the end of 2024, by one percentage point in total.
The Fed has indicated it will continue to cut its target rate in 2025. However, it now plans a total of two cuts, compared to four previous forecasts.
The federal funds rate does not directly impact deposit interest rates, although they are correlated. When the Fed lowers rates, financial institutions generally follow suit (and vice versa). So now that the Fed has lowered rates, CD rates are starting to fall again. That’s why now might be a good time to put your money in a CD and benefit from today’s best rates.
The process of opening a CD account varies by financial institution. However, you can expect to follow a few general steps:
Prices for research CDs: One of the most important factors to consider when opening a CD is whether the account offers a competitive rate. You can easily compare CD prices online to find the best deals.
Choose an account that meets your needs: Although a CD’s interest rate is a key factor, it shouldn’t be the only one. You should also evaluate the CD term, opening minimum deposit requirements, and fees to ensure a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that is too long, otherwise you will be subject to an early withdrawal penalty if you need to withdraw your funds before the CD matures.
Prepare your documents: When opening a bank account, you’ll need to provide some information, including your social security number, address, and driver’s license or passport number. Having these documents on hand will help streamline the application process.
Complete the file: These days, many financial institutions allow you to apply for an account online, although in some cases you may need to visit a branch. Either way, requesting a new CD should only take a few minutes. And in many cases, you’ll get your approval decision instantly.
Fund the account: Once your CD request is approved, it’s time to fund the account. This can usually be done by transferring money from another account or sending a check.
Learn more: Step-by-step instructions for opening a CD
