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- You can earn up to 4.65% APY with today’s premium CDs.
- APYs are falling because of the Fed’s recent rate cuts.
- The sooner you lock in your APY, the more interest you have 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 your earnings. So is time.
Today excellent CDs It boasts an annual yield, or APY, as high as 4.65%. APYs have been falling since the Fed cut rates at its last three meetings, however. This means that the faster you open a CD, the more APY you can lock in — and the higher your chances of earning.
Here are the top CDs right now and how much you can get for investing $5,000.
The best CDs today
| Time | Highest APY* | Bank | Estimated costs |
|---|---|---|---|
| 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. Enter your information below to find CNET friends the best rate in your area.
Why you should open a CD today
CD prices have been falling for several months in response to the list of Lowering the rate of the Federal Reserve. The Fed doesn’t directly set CD rates, but its federal funds rate determines the amount of money banks borrow and lend to each other. When this increases, banks tend to raise APYs on CDs and savings accounts attract new customers and increase their income. When this rate drops, banks drop these APYs.
The Fed raised rates to combat the COVID-era rate hike, and CD rates rose, reaching 5.65% APY at the banks we track at CNET. It has fallen sharply since then, especially in recent months as rising inflation prompted the Fed to cut rates at its last three meetings. But the top APY — 4.65% — is still more than double that almost all over the world for other words.
And with analysts expecting a Fed rate cut in 2025, locking in one of today’s APYs can protect your income from falling. If you’ve been thinking about putting your money into a CD, doing so ASAP can help you maximize your income.
“While some banks may still offer competitive rates to attract investors, the trend is likely to be bearish for now, especially if the Fed stays on its path to control inflation and avoid recession,” said Taylor Kovar, CFP, founder. and CEO of 11 Finance.
How CD prices have changed in the last week
| Time | Last week CNET averaged APY | CNET average this week’s APY** | Weekly update*** |
|---|---|---|---|
| 6 months | 4.09% | 4.09% | There is no change |
| 1 year | 4.03% | 4.03% | There is no change |
| 3 years | 3.50% | 3.50% | There is no change |
| 5 years | 3.45% | 3.45% | There is no change |
Things to consider when choosing a CD
A competitive APY is important, but it’s not the only thing you should look for. To find the right CD for you, try the following:
- When you need your money: Early withdrawal penalties can eat into your interest rate. So make sure you choose the words that match the time you have saved. Alternatively, you can choose a penalty-free CDalthough the APY may not be as high as with a traditional CD.
- Minimum deposit requirements: Some CDs require a minimum deposit to open an account — typically, $500 to $1,000. Some don’t. The money you need to set aside can help you narrow down your options.
- Fees: Maintenance and other fees may depend on your income. Most of them online banking no fees because they have cheaper fees than banks with physical branches. However, read the fine print for each account you are reviewing.
- Federal deposit insurance: Check any bank or credit union Consider being a member of the FDIC or NCUA so that your money is protected if the bank fails.
- Customer reviews and ratings: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that is responsive, professional and easy to work with.
The way
CNET also checks CD rates based on the most recent APY information from the issuer’s website. We reviewed CD rates from more than 50 banks, credit unions and financial institutions. We evaluate CDs based on APYs, sales, availability and customer service.
Current banks included in CNET’s weekly CDs 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 January 7, 2025, based on the banks we track at CNET. Earnings are based on APYs and we assume interest is compounded annually.
**Weekly increase/decrease from Dec. 30, 2024, to Jan. 6, 2025.
