- Today's top CDs boast APYs as high as 4.65%.
- APYs will likely continue to fall if the Fed continues to cut rates in the coming months.
- Your APY has been fixed when you open a CD, so opening one can now maximize your earnings.
The sooner you open a certificate of deposit, the more interest you can earn.
Today's the best CDs offer annual percentage returns, or APY, as high as 4.65%. But APYs have been falling since the Federal Reserve cut rates at the last three meetings, and experts expect more cuts in the coming months. So the longer you wait to open a CD, the lower the APY you may be able to lock in.
“I wouldn't bet on rates moving much higher in the near term, so I'd trigger it now if fixed income was a priority,” said Noah Damsky, CFA, director of Marina Wealth Advisors.
Here are some of the highest CD rates right now and how much you can earn by depositing $5,000.
Today's best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.65% | Community Federal Credit Union | $114.93 |
| 1 year | 4.45% | Community 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 rate 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 Federal Reserve rate cut. The Fed doesn't set CD rates directly, but its federal funds rate determines how much it costs banks to borrow and lend money to each other. When this rate increases, banks tend to raise the APY on CDs and savings accounts to attract new customers and increase their cash flow. When it lowers this rate, banks lower these APYs.
The Fed has raised rates to fight COVID-era inflation, and CD rates have soared, reaching 5.65% APY for the banks we track at CNET. They have eased significantly since then, particularly in recent months as cooling inflation prompted the Fed to cut rates at its last three meetings. But the top APY — 4.65% — is still more than double that national average for some terms.
And with experts expecting more Fed rate cuts in 2025, locking in one of today's APYs can protect your income from further declines. If you've been thinking about keeping 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 is likely to be lower rates for now, especially if the Fed stays on its current course of managing inflation, avoiding a further economic slowdown,” he said.Taylor Kovar, CFP, founder and CEO of 11 Financial.
How CD rates have changed in the last week
| Term | CNET's 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:
- When you need your money: Penalties for early withdrawal it can eat into your interest earnings. So be sure to choose a term that fits your savings timeframe. Alternatively, you can choose 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 – typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow down your options.
- Fees: Maintenance and other fees can eat into your earnings. Many online banks don't charge fees because they have lower overheads than banks with physical branches. However, read the fine print on any account you are evaluating.
- Federal Deposit Insurance: Make sure that a bank or credit union what are you thinking if you are a member of the FDIC or NCUA so your money is protected 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 responsible, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We've evaluated CD rates from more than 50 banks, credit unions and finance companies. We evaluate CDs based on APY, 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, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, Community Wide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APY as of January 9, 2025, based on the banks we track at CNET. Earnings are based on APY and interest is assumed to compound annually.
**Weekly percentage increase/decrease from December 30, 2024 to January 6, 2025.