CD rates today, January 20, 2025 (Lock in up to 4.27% APY)

The Federal Reserve has cut its interest rate target three times in 2024. That will affect deposit account rates, meaning now may be your last chance to lock in today’s high rates. certificate of deposit (CD): Here are today’s CD prices and where to find the best deals.

As of January 20, 2025, CD rates are still competitive, especially with shorter terms. For example, several financial institutions are offering CD rates around 4.00% APY for terms of about one year or less not quite as high, but the best offers still hover around 3.00%-4.00% APY for terms of three years or more.

Today, the highest CD rate is 4.27% APY that NexBank offers on its 1-year CD term, however, there is a large minimum opening deposit of $25,000.

Next highest is the 4.25% APY offered by Marcus on its 1-year CD.$500 minimum deposit required.

Here are some of the best CD prices available today from our verified partners.

See our picks for the best CD accounts available today>>

If you are considering a CD, these prices are some of them highest availableespecially when we compare with the national average indicators, which are significantly lower. It should also be noted that online banks and: credit unions generally offer more competitive interest rates compared to traditional brick and mortar banks.

Read more. What is a good CD rate?

Here is the average CD rate as of December 2024 (the most recent data available FDIC).

The highest national average CD rate is 1.83% for 1 year.However, overall, today’s average CD rates represent some of the highest seen in nearly two decades, largely due to the Federal Reserve’s anti-inflation in an effort to fight back by keeping interest rates high.

If you think opening a CDit’s important to choose one with a high APY and a term length that fits your financial goals.Here are some tips for finding the best CD rates and accounts that fit your needs:

• Shop: It’s a good idea to evaluate CD rates from different financial institutions and compare your options before settling on an account.You can easily compare CD rates online.

• Consider online banks. Online banks tend to have lower overhead, which allows them to offer higher interest rates on CDs. In fact, online banks often have the most competitive rates available.

• Check the minimum deposit requirements. Higher CD interest rates may have higher minimum deposit requirements, so make sure the amount you plan to deposit meets the requirements to get the best interest rate.

• Review the account terms. Beyond the CD rate, look at the terms of early withdrawal penalties and auto-renewal policies.Some CDs offer better terms of flexibility, such as CDs without fineswhich allow you to withdraw your funds before maturity without commission.