- You can earn up to 4.65% APY with today’s best CDs.
- APYs are falling due to recent Fed rate cuts.
- The sooner you lock in your APY, the more interest you’ll earn.
A certificate of deposit can help you grow your money safely and reliably, but CD choice can make a big difference in how much you earn. The timing too.
Today’s best CDs boast annual percentage yields, or APYs, of up to 4.65%. However, APYs have been falling since the Fed cut rates at its last three meetings. This means that the sooner you open a CD, the higher the APY you’ll be able to lock in – and the higher your earning potential could be.
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 you should open a CD today
CD rates have been falling for months in response to a series of rate cuts from the Federal Reserve. The Fed doesn’t set CD rates directly, but the federal funds rate determines how much it costs banks to borrow and lend money to each other. When raising this rate, banks tend to increase APYs on CDs and savings accounts to attract new customers and increase their cash flow. When they reduce this rate, banks give up these APYs.
The Fed raised rates to combat COVID-era inflation, and CD rates 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. But the highest APY – 4.65% – is still more than double the national average for certain terms.
And with experts expecting further Fed rate cuts in 2025, locking in one of today’s APYs can protect your income from further cuts. If you are considering storing your funds in a CD, doing so as soon as possible can help increase your earning potential.
“While some banks may still offer competitive rates to attract deposits, the general trend will likely be toward lower rates for now, especially if the Fed maintains its current policy of managing inflation while avoiding a further slowdown economical,” said Taylor Kovar, CFP, founder. and CEO of 11 Financial.
How CD prices changed last week
| Term | Last week’s CNET average APY | This week’s CNET average APY** | Weekly change*** |
|---|---|---|---|
| 6 months | 4.09% | 4.09% | No change |
| 1 year | 4.03% | 4.03% | No change |
| 3 years | 3.50% | 3.50% | No change |
| 5 years | 3.45% | 3.45% | No change |
What to Consider When Choosing a CD
A competitive APY is important, but it’s not the only thing you should 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 penalty-free CD, although the APY isn’t as high as you’d 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. Many online banks don’t 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 the bank or credit union you’re considering is 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 7, 2025, based on the banks we follow on CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from December 30, 2024 to January 6, 2025.
