- You can earn up to 4.65% APY with today's top CDs.
- Rates have been falling for months and are likely to continue falling.
- Opening a CD now allows you to lock in a high APY and protect your earnings from further rate cuts.
If you've been thinking about opening a certificate of deposit, now is the time to do it.
Today's the best CDs offer up to 4.65% annual percentage yield, or APY — more than double that national average for some terms. But APYs have been falling since the Federal Reserve cut interest rates at the last three meetings. And since experts expect more cuts this year, the sooner you open a CD, the higher the APY you might 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 may still be attractive, but the days of sky-high APYs are over. APYs have been falling for months after a streak of Federal Reserve rate cut. The Fed does not set CD rates directly, but banks tend to move in step with their decisions. When the Fed lowered rates, banks lowered APYs on products like CDs and savings accounts and vice versa.
To combat COVID-era inflation, the Fed raised rates 11 times starting in March 2022, 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. With experts expecting more Fed rate cuts in 2025, locking in one of today's best APYs can protect your income from further declines.
How CD rates have changed since last month
| Term | CNET average APY as of December 13, 2024 | CNET average APY as of 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 you should consider. To find the right CD for you, weigh these factors as well:
- 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 14, 2025, based on the banks we track at CNET. Earnings are based on APY and interest is assumed to compound annually.