- Today’s best CDs offer APYs as high as 4.65%.
- Rates have slipped since the Fed cut interest rates last year.
- By locking in a high APY now, you can protect your earnings against further rate drops.
Certificates of deposit offer the benefit of a guaranteed interest rate, and the best CDs currently offer APYs as high as 4.65%. However, these higher rates may not linger, so now may be a good time to make a move.
The Federal Reserve paused interest rates at its January meeting, but banks can still lower CD rates — and some already have this year. Plus, some experts predict the Fed could lower interest rates again by the end of the year.
Opening a CD today means you can lock in a higher rate for the term of your CD, regardless of what happens. Here are some of the highest CD rates 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 ‘s partners’ best rate for your area.
How does the Fed affect CD rates?
The Federal Open Market Committee meets eight times a year to set the federal funds rate based on the health of the US economy. The Fed may raise interest rates to try to slow down inflation or lower them to stimulate spending. After cutting interest rates in 2024, the Fed paused any moves at its January meeting amid signs that inflation was inching back up again.
While the Fed doesn’t directly set CD rates, banks generally set APYs according to the federal funds rate. CDs offer a fixed rate for a set period of time, so locking in a higher rate now can help protect your earnings if the Fed decides to lower interest rates in coming months.
But it only makes sense to lock in a rate when you know you won’t need access to the money. Otherwise, if you have to cash out the CD before it matures, you could be hit with early withdrawal fees.
“Going with the highest APY makes a lot of sense, although you’ll want to make sure you pick a maturity date that aligns with your situation,” said Keith Spencer, CFP, founder and financial planner at Spencer Financial Planning.
💰You can earn up to 5% APY on the best high-yield savings accounts. Check out today’s rates.
Average CD rates from week to week
| Term | Last week’s average APY | This week’s average APY | Weekly change** |
|---|---|---|---|
| 6 months | 4.10% | 4.10% | No change |
| 1 year | 4.06% | 4.07% | +0.25% |
| 3 years | 3.54% | 3.55% | +0.29% |
| 5 years | 3.55% | 3.56% | +0.28% |
Key features when choosing a CD
A competitive APY is important, but it’s not the only thing you should consider. To find the right CD for you, weigh these things, too:
- When you’ll need your money: Early withdrawal penalties on CDs can eat into your interest earnings if you need your money before the term ends, so choose a timeline that makes sense. 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 deposit to open an account, typically $500 to $1,000. Knowing how much money you have to set aside can help you narrow your options.
- Fees: Maintenance and other fees can cut into your savings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Read the fine print for any account you’re evaluating.
- Safety and security: Make sure the 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
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 ‘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 Feb. 10, 2025, based on the banks we track at . Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Feb. 3, 2025, to Feb. 10, 2025.
