Don’t Let High APYs Pass You By. Today’s CD Rates, Jan. 23, 2025
- The best CDs today offer annualized yields as high as 4.65%.
- When you open the CD, your APY is fixed.
- With APYs declining, locking in a high APY now can maximize your earning potential.
A deposit slip is a great place to stash extra cash at any time. CDs offer low risk and guaranteed returns, making them ideal for funds you can set aside for a specific period of time. But they could be especially valuable in today’s environment of falling interest rates.
Hot CDs The current annual yield (APY) offered is as high as 4.65%. Open one of the CDs now and your APY will be locked for the entire CD term. This can help you maximize your earnings as APY continues to decrease.
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.
Now is the time to lock in high APY
APY on CD and savings account After a series of adjustments, it has been declining for several months. Fed cuts interest rates. But with Inflation picks up slightlyMany experts believe the Fed will keep rates on hold at next week’s Federal Open Market Committee meeting. This means there’s still time to get a great APY.
“We don’t expect major action at the next Fed meeting as current signals point to a cautious, wait-and-see approach to determining the pace of rate cuts this year,” said Chad Olivier, certified financial planner and chief executive. Olivier Group. “We still think the Fed is going to have an accommodative environment. However, in some ways, all markets are waiting to see what happens with the new administration before they really step in and lower interest rates aggressively.”
Experts anticipate interest rate cuts later this year, so getting a high APR now can maximize your earning potential. When you open a CD, your APY is locked in, which means your returns will remain the same no matter what overall interest rates change thereafter.
What happened to CD rates last week?
semester | CNET average APY last week | CNET average APY this week | Weekly changes** |
---|---|---|---|
6 months | 4.09% | 4.05% | -0.98% |
1 year | 4.03% | 4.01% | -0.50% |
3 years | 3.50% | 3.50% | no change |
5 years | 3.45% | 3.45% | no change |
How to choose the CD that’s right for you
Competitive APY is important, but it’s not the only thing you should keep in mind. 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 22, 2025, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
**Weekly percentage increase/decrease between January 13, 2025 and January 20, 2025.