There’s Still Time to Lock in a High APY. Today’s CD Rates, Jan. 22, 2025
- Today’s top CDs have APYs as high as 4.65%.
- Experts expect the Fed to pause raising interest rates at its next meeting, but may cut rates later this year.
- Locking in your APY now protects you from future interest rate drops.
The days of sky-high APYs may be over, but CD rates remain attractive. You can earn up to 4.65% annual yield, or today’s APY best cd ——More than twice national average For certain terms.
Even better, when you open a CD, your APY is fixed, so you’ll enjoy the same returns even if interest rates drop, as experts predict they will in the coming months. If you have some cash that you don’t need right away, putting it in a CD can be a good way to maximize 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.
Where do CD rates go next?
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 |
Consider these factors when choosing a CD
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.
