- You can earn up to 4.65% APY with today’s top CDs.
- APYs are falling due to recent Fed rate cuts.
- The sooner you lock in your APY, the more interest you stand to 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 timing.
Today’s best CDs boast annual percentage yields, or APY, as high as 4.65%. APYs have been falling since the Fed cut rates at 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 greater your earning potential could be.
Here are some of the highest CD rates right now and how much you could earn by depositing $5,000.
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 6 months | 4.65% | CommunityWide Federal Credit Union | $114.93 |
| 1 year | 4.45% | CommunityWide Federal Credit Union | $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 APY possible. Enter your information below to get CNET’s partners’ best rate 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 fund rate determines how much it costs banks to borrow and lend money to each other. When it raises this rate, banks tend to raise APYs on CDs and savings accounts to attract new customers and boost their cash flow. When it cuts this rate, banks drop these APYs.
The Fed hiked rates to combat COVID-era inflation, and CD rates soared, reaching 5.65% APY for the banks we track at CNET. They’ve come down considerably since then, especially in recent months as cooling inflation caused the Fed to cut rates at its last three meetings. But the top APY — 4.65% — is still more than double the national average for some 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 of stashing your funds in a CD, doing so ASAP can help you boost your earning potential.
“While some banks may still offer competitive rates to attract deposits, the general trend will probably be lower rates for now, especially if the Fed stays on its current course of managing inflation while avoiding 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, weigh these factors too:
- When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d 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 set aside can help you narrow your options.
- Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
- Federal deposit insurance: Make sure any bank or credit union you’re considering is 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’s responsive, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The 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, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APYs as of Jan. 7, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Dec. 30, 2024, to Jan. 6, 2025.
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