- Today’s best CDs earn up to 4.65% APY.
- APYs are falling after the Fed cut interest rates in the last three meetings.
- The sooner you open a CD, the better the APY you can lock in — and the bigger your earning potential can be.
Timing is of the essence when it comes to how much you can earn with a certificate of deposit. Unlike savings account fees, which are variable, CD fees are fixed when you open the account. So opening a CD while rates are high can help you maximize your earnings.
Today’s best CDs offer up to 4.65% annual percentage yield, or APY. But APYs have been falling for months, and we’re likely to see them fall further. This makes now the ideal time to lock in your APY and protect your income.
Here are some of the highest CD rates right now and how much you can earn by depositing $5,000.
Today’s best CD rates
| Deadline | Highest APY* | Bank | Estimated earnings |
|---|---|---|---|
| 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 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 possible APY. Enter your information below to get the best CNET partner rate for your area.
There’s still time to score a great CD rate
CD rates may still be attractive, but the days of high APYs are over. APYs have been falling for months following a series of Federal Reserve rate cuts. The Fed does not directly set CD rates, but banks tend to follow its decisions. When the Fed lowers rates, banks lower APYs for products like CDs and savings accounts.
To combat COVID-era inflation, the Fed raised rates 11 times starting in March 2022, and CD rates rose, reaching 5.65% APY for the banks we follow at CNET. They have fallen sharply since then, particularly in recent months as cooling inflation prompted the Fed to cut rates at its last three meetings. With experts expecting more Fed rate cuts in 2025, locking in one of today’s best APYs can protect your income from further declines.
“If you need a safe place to park money for a period of time, a CD is still a solid, low-risk choice,” said Taylor Kovar, CFP, founder and CEO of 11 Financial. “Just don’t expect the returns you might have seen a year ago.”
Average CD rates from month to month
| Deadline | CNET average APY as of December 13, 2024 | CNET average APY as of January 13, 2025 | AmENdmENT |
|---|---|---|---|
| 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 right CD for you
A competitive APY is important, but it’s not the only thing you should consider. To find the right CD for you, also weigh these factors:
- When you will need your money: Early withdrawal penalties can affect your interest earnings. So, make sure you choose a term that fits the savings timeframe. Alternatively, you can choose a penalty-free CD, although the APY may not be as high as you would 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 don’t. How much money you should set aside can help you narrow down your options.
- Fees: Maintenance and other fees can affect your earnings. Many online banks do not charge fees because they have lower costs than banks with physical branches. However, read the fine print on any account you are evaluating.
- Federal Deposit Insurance: Make sure that any bank or credit union you are considering is a member of the FDIC or NCUA so that 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 is 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 finance companies. We rate 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, Growing Bank, Synchrony, EverBank, People’s 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.
*APY as of January 15, 2025, based on banks we track at CNET. Earnings are based on APY and assume interest is compounded annually.
