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- You can earn up to 4.65% APY with today’s premium CDs.
- Prices have been falling for months and may continue to fall.
- Opening a CD now allows you to lock in a higher APY and protect your income at lower rates.
If you’ve been thinking about opening a certificate of deposit, now is the time to do it.
Today excellent CDs pay up to 4.65% annual yield, or APY — double that almost all over the world for other words. But APYs have been falling since the Federal Reserve cut interest rates at its last three meetings. And experts expect more cuts this year, the sooner you open a CD, the higher the APY you can close.
“I wouldn’t bet on rates going up any time soon, so I would start again if fixed income was more important,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors.
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 now is the time to open the CD
CD rates may be attractive, but the days of high APYs are over. APYs have been falling for months after that Lowering the rate of the Federal Reserve. Funds don’t directly set CD prices, but banks tend to move in the background with their decisions. When the Fed cut rates, banks cut APYs on products like CDs and savings accounts and vice versa.
To combat COVID-era inflation, the Fed raised rates 11 times starting in March 2022, and CD rates rose, reaching 5.65% APY at the banks we track at CNET. It has fallen sharply since then, particularly in recent months as rising inflation prompted the Fed to cut rates at its last three meetings. With analysts expecting a Fed rate cut in 2025, locking in one of today’s best APYs can protect your income from further declines.
How CD prices have changed since last month
| Time | CNET average APY on Dec. 13, 2024 | CNET average APY on Jan. 13, 2025 | Change it |
|---|---|---|---|
| 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% |
What to look for when comparing CDs
A competitive APY is important, but it’s not the only thing you should consider. 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 14, 2025, based on the banks we track at CNET. Earnings are based on APYs and we assume interest is compounded annually.
