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- You can earn up to 4.65% APY with today’s top CDs.
- APYs are falling due to the Fed’s recent 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 which CD you choose can make a big difference in how much you earn. So can the timing.
Today the best CDs they boast annual percentage yields, or APY, of up to 4.65%. APYs have fallen since the Fed cut rates in its last three meetings, however. That means the sooner you open a CD, the higher the APY you might be able to lock in — and the bigger your earning potential could be.
Here are some of the highest CD rates right now and how much you could earn on a $5,000 deposit.
Today’s best CD prices
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.65% | Community Federal Credit Unions | $114.93 |
| 1 year | 4.45% | Community Federal Credit Unions | $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 rates for your area.
Why you should open a CD today
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 funds rate determines how much it costs banks to borrow and lend money. When this rate increases, banks tend to raise APYs on CDs and savings accounts to attract new customers and increase their cash flow. When this rate is cut, banks drop 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 fallen considerably since then, especially in recent months, as cooling inflation has caused the Fed to cut rates at its last three meetings. But the top APY – 4.65% – is still more than double national media for certain terms.
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 about stashing your funds in a CD, doing so ASAP can help you increase your earning potential.
“While some banks may still offer competitive rates to attract deposits, the general trend will likely be lower rates for now, especially if the Fed stays on its current course of managing inflation while avoiding a further economic slowdown” , said Taylor Kovar, CFP, founder. and CEO of 11 Financial.
How CD rates have changed in the 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 look at. To find the right CD for you, also weigh these factors:
- When you need your money: Early retirement penalty it can eat into your interest earnings. So make sure you choose a term that fits your savings timeline. Alternatively, you can select 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 put aside can help you narrow down your options.
- Fees: Maintenance and other fees can eat into your earnings. Many online banking you don’t pay fees because they have lower overheads than banks with physical branches. However, read the fine print for any account you are evaluating.
- Federal Deposit Insurance: Make sure that each bank or credit union We consider you 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 is responsive, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuing websites. We’ve evaluated CD rates from over 50 banks, credit unions and finance companies. We rate CDs based on APY, product offerings, affordability and customer service.
Current banks included in CNET’s weekly CD average 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.
*APY as of January 7, 2025, based on banks we track at CNET. Earnings are based on APY and assume interest is compounded annually.
** Weekly percentage increase/decrease from December 30, 2024 to January 6, 2025.
