Grow your money faster with these top rates – while you still can.Grow your money faster with these top rates – while you still can. Grow your money faster with these top rates – while you still can.
Want to maximize your money in 2025? Now’s the time to open a certificate of deposit.
Unlike savings rates, which can change at any time, CD rates are fixed. Your rate is set when you open the account, so your returns stay the same even if overall rates go down. And in a falling-rate environment like today’s, that’s especially valuable.
Today’s best CDs offer up to 4.70% annual percentage yield, or APY. But APYs have been falling since the Federal Reserve started cutting interest rates in September, so the sooner you open a CD, the higher the APY you’re likely to lock in — and the more you could earn.
Here are some of the highest CD rates right now and how much you could earn by depositing $5,000.
Today’s best CD rates
| 6 months | 4.70% | Rising Bank | $117.50 |
|---|---|---|---|
| 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 APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
Why opening a CD today is still a smart move
CD rates have been falling for months in response to a series of Federal Reserve rate cuts. The Fed doesn’t directly set CD rates, but its federal fund rate determines how much it costs banks to borrow from and lend money to each other. When it raises this rate, banks tend to raise APYs on CDs and savings accounts to attract new customers and boost their cash flow. When it cuts this rate, banks drop these APYs.
The Fed hiked rates to combat COVID-era inflation, and CD rates soared, reaching 5.65% APY for the banks we track at CNET. They’ve come down considerably since then, especially in recent months as cooling inflation caused the Fed to cut rates at its last three meetings. But the top APY — 4.70% — is still more than double the national average for some terms.
“Rates from a historical perspective are very high, especially on shorter-term CDs,” said Steven Conners, CEP, founder and president of Conners Wealth Management.
And with experts expecting more Fed rate cuts in 2025, locking in one of today’s APYs can protect your earnings from additional drops. If you’ve been thinking of stashing your funds in a CD, doing so ASAP can help you boost your earning potential.
How CD rates have changed in the last week
| 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 |
Look at these things when choosing a CD
A competitive APY is important when comparing CD accounts, but it’s not the only thing you should consider. To find the right account for you, weigh these factors, too:
- When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be 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 — typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow your options.
- Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
- Federal deposit insurance: Make sure any bank or credit union you’re considering is an FDIC or NCUA member 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’s responsive, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The 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, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APYs as of Jan. 3, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Dec. 23, 2024, to Dec. 30, 2024.
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