Don’t Sleep on APYs up to 4.65%. Today’s CD Rates, Jan. 8, 2025
- You can earn up to 4.65% APY with today’s top CDs.
- APY is falling due to the recent Fed rate cuts.
- The sooner you lock in APY, the more interest you earn.
Certificates of deposit can help you grow your money safely and securely, but which certificate of deposit you choose can have a big impact on your income. So does timing.
Today’s best cd The annual yield (APY) is as high as 4.65%. However, APY has been declining since the Fed cut interest rates at its last three meetings. This means that the sooner you open your CD, the higher the APY you’ll be able to lock in, and the greater your earning potential.
Here are some of the highest CD rates available right now and how much you can earn by depositing $5,000.
Today’s Best CD Rates
| semester | Maximum annualized interest rate* | bank | Estimated revenue |
|---|---|---|---|
| 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’s First Credit Union | $648.69 |
| 5 years | 4.25% | America’s First Credit Union | $1,156.73 |
Experts recommend comparing interest rates before opening a CD account to get the best possible annual return. Enter your information below to get the best prices in your area from CNET partners.
Why you should open a CD today
CD rates have been falling for months due to a range of impacts. Fed cuts interest rates. The Fed does not directly set deposit rates, but its federal funds rate determines the cost for banks to lend to each other. When this rate is raised, banks tend to increase the APR on CDs and CDs savings account Attract new customers and increase their cash flow. When it lowers that rate, the bank gives up those APRs.
As the Federal Reserve raises interest rates to combat inflation in the COVID-19 era, deposit rates have soared, with annual interest rates at banks we track at CNET reaching 5.65%. Rates have fallen sharply since then, especially in recent months as cooling inflation led the Fed to cut rates at its last three meetings. But the top annualized yield (APY) – 4.65% – is still more than double the same period last year national average For certain terms.
With experts predicting further interest rate cuts from the Federal Reserve in 2025, locking in one of today’s APYs can protect your income from further declines. If you’ve been considering putting your money into a CD, doing so as soon as possible can help increase your earning potential.
CFP founder Taylor Kovar said: “While some banks may still offer competitive rates to attract deposits, the overall trend is likely to be towards lower rates, especially if the Fed continues to maintain current inflation management approach while avoiding a further economic slowdown,” and CEO. 11 Finance.
What happened to CD rates last week?
| semester | CNET average APY last week | CNET average APY this week** | Weekly changes*** |
|---|---|---|---|
| 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
Competitive APY is important, but it’s not the only factor you should focus on. To find the CD that’s right for you, also weigh the following factors:
- When you need money: Early withdrawal penalties It will eat into your interest income. So be sure to choose a term that fits your savings schedule. Alternatively, you can choose No penalty CDalthough the APY may not be as high as a traditional CD of the same term.
- Minimum deposit requirements: Some CDs require a minimum amount to open an account, usually $500 to $1,000. Others don’t. How much money you need to set aside can help you narrow down your options.
- cost: Maintenance fees and other expenses eat into your income. many online banking There are no fees because their administrative costs are lower than banks with physical branches. However, please read the fine print of any account you are evaluating.
- Federal Deposit Insurance: Make sure any bank or credit union You are considering becoming an FDIC or NCUA member so your money is protected if the bank fails.
- Customer ratings and reviews: Check out sites like Trustpilot to find out what customers are saying about your 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 the issuer’s website. We evaluated CD rates from more than 50 banks, credit unions and finance companies. We evaluate CDs based on APY, product offerings, accessibility, 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, First American 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 compounded annually.
**Weekly percentage increase/decrease between December 30, 2024 and January 6, 2025.
