Don’t miss your chance to earn up to 4.65% APY. Today’s CD Prices January 10, 2025
- Today’s top CDs boast APYs as high as 4.65%.
- APYs are likely to continue to fall if the Fed continues to cut rates in the coming months.
- Your APY is fixed when you open a CD, so opening one now can maximize your earnings.
The sooner you open a certificate of deposit, the more interest you can earn.
Today’s the best CDs offer annual percentage returns, or APY, of up to 4.65%. But APYs have been falling since the Federal Reserve cut interest rates at its last three meetings, and experts expect more cuts in the coming months. So the longer you wait to open a CD, the lower APY you may be able to lock in.
“I wouldn’t bet on rates going up much in the near term, so I’d pull the trigger now if fixed income was a priority,” said Noah Damsky, CFA, director of Marina Wealth Advisors.
Here are some of the highest CD prices right now and how much you can earn by depositing $5,000.
Today’s best CD prices
| Term | Highest APY* | bank | Expected revenue |
|---|---|---|---|
| 6 months | 4.65% | Community Federal Credit Union | $114.93 |
| 1 year | 4.45% | Community Federal Credit Union | $222.50 |
| 3 years | 4.15% | American First Credit Union | $648.69 |
| 5 years | 4.25% | American 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 price from CNET partners for your area.
Why now is the time to open a CD
CD prices have been falling for months in response to a series of Federal Reserve rate cut. The Federal Reserve does not directly set CD interest rates, but the federal funds rate determines how much it costs banks to borrow and lend money to each other. When that rate rises, banks tend to raise the APY on CDs and savings accounts to attract new customers and increase their cash flow. When it lowers that rate, banks lower those APYs.
The Federal Reserve has raised rates to combat COVID-era inflation, and CD rates have soared, reaching 5.65% APY for the banks we track 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. But the highest APY — 4.65% — is still more than twice as high average for the country for some terms.
And with experts expecting more rate cuts from the Fed in 2025, locking in one of today’s APYs can protect your income from further declines. If you’ve been thinking about stashing your funds in a CD, doing so as soon as possible can help increase your earning potential.
“While some banks may still offer competitive interest rates to attract deposits, the general trend is likely to be lower rates for now, especially if the Fed stays on its current course of managing inflation while avoiding a further slowdown of the economy,” he saidTaylor Kovar, CFP, Founder and CEO of 11 Financial.
How CD prices have changed in the last week
| Term | CNET’s average APY last week | Average CNET APY for this week** | Weekly Change*** |
|---|---|---|---|
| 6 months | 4.09% | 4.09% | No change |
| 1 year | 4.03% | 4.03% | No change |
| 3 years | 3.50% | 3.50% | No change |
| 5 years | 3.45% | 3.45% | No change |
What to consider when comparing CDs
A competitive APY is important, but it’s not the only thing to consider. To find the right CD for you, also weigh these factors:
- When you will need your money: Penalties for early withdrawal it can eat into your interest earnings. So be sure to choose a term that suits your savings schedule. Alternatively, you can choose a CD without penaltiesalthough 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 – usually $500 to $1,000. Others do not. How much money you have to set aside can help you narrow down your options.
- Fees: Maintenance fees and other fees can eat into your profits. a lot online banks they don’t charge fees because they have lower overhead costs than banks with physical branches. However, read the fine print on any account you evaluate.
- Federal Deposit Insurance: Make sure that any bank or credit union consider being a member of the FDIC or NCUA 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 is responsive, professional and easy to work with.
Methodology
CNET reviews CD prices based on the latest APY information from publisher websites. We’ve evaluated CD rates from more than 50 banks, credit unions and finance companies. We rate CDs based on APY, product offerings, affordability 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, 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.
*APY as of January 9, 2025. based on the banks we track at CNET. Earnings are based on APY and assume interest is compounded annually.
**Weekly percentage increase/decrease as of December 30, 2024. until January 6, 2025
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