The Clock Is Ticking on High APYs. Today’s CD Rates, Jan. 16, 2025
- Today’s top CDs have annualized yields as high as 4.65%.
- APY is falling after the Fed cut rates at its last three meetings.
- The sooner you open your CD, the better APY you’ll lock in, and the greater your earning potential.
When it comes to how much money you can make with a deposit order, timing is key. Unlike savings account interest rates, which are variable, CD interest rates are fixed when you open the account. Therefore, opening a CD when interest rates are high can help you maximize your returns.
Today’s best cd Offers an annual yield (APY) of up to 4.65%. But APYs have been declining for several months, and we may see them decline further. Now is the ideal time to lock in your annual gains and protect your income.
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.
There’s still time to get a higher CD rate
CD rates may still be attractive, but the days of sky-high APYs are over. APY has been declining for months after a series of corrections Fed cuts interest rates. The Fed does not directly set deposit rates, but banks tend to keep pace with its decisions. When the Fed cuts interest rates, banks lower the annual interest rates on products like CDs savings account.
To combat inflation in the coronavirus era, the Federal Reserve has raised interest rates 11 times starting in March 2022, CD rates have soared, and the annual interest rate at the banks we track at CNET has reached 5.65%. Since then, interest rates have fallen sharply, especially in recent months, as cooling inflation has led the Fed to cut interest rates at its last three meetings. With experts predicting further interest rate cuts from the Federal Reserve in 2025, locking in one of today’s best APYs can protect your income from further declines.
“If you need a safe place to store cash for a period of time, CDs remain a solid, low-risk option,” said Taylor Kovar, CFP, founder and CEO. 11 Finance. “Just don’t expect the returns you might have seen a year ago.”
Average monthly CD interest rate
| semester | CNET average annualized revenue on December 13, 2024 | CNET average annualized revenue on 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% |
How to choose the CD that’s right for you
Competitive APY is important, but it’s not the only factor you should consider. 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 a 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 Are you 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 15, 2025, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
