- You can earn up to 4.65% APY with today’s top CDs.
- The Federal Reserve paused rates this week, but cuts are expected later this year.
- Locking in your APY now can protect your returns from future rate drops.
Want to maximize your earnings with a certificate of deposit? You’ve still got time to do it. The Federal Reserve’s rate pause this week means CD rates are likely to hold steady for the time being. But that doesn’t mean you should wait too long to open an account.
Experts expect the Fed will begin cutting rates later this year, and banks can always adjust their CD rates at any time. By opening a CD now, you can lock in today’s rates and protect your earning potential. Top CDs currently offer up to 4.65% annual percentage yield, or APY.
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 CNET’s partners’ best rate for your area.
How the Fed impacts CD rates
APYs on CDs and savings accounts have been dropping since the Fed cut interest rates at its last three 2024 meetings. But with inflation rising again, the Fed chose to hold rates steady at its Jan. 29 meeting, and experts believe it will keep rates paused for a while. As a result, banks are hedging their bets by keeping CD rates relatively flat too, particularly given the uncertainty around the new administration’s policies.Â
“Current signals suggest a cautious, wait-and-see approach to determine the pace of interest rate cuts this year,” said Chad Olivier, CEO of The Olivier Group.Â
While the Fed is still projected to ease rates later this year, “the markets are, in some respect, waiting to see what happens with the new administration before they really step in and get aggressive on lower interest rates,” Olivier said.Â
By securing a high APY now, you can maximize your savings. Your APY is locked in when you open a CD, which means your rate of return stays the same regardless of where the Fed’s benchmark rate goes after that.
💰You can earn up to 5% APY on the best high-yield savings accounts. Check out today’s rates.Â
Average CD rates from week to week
| Term | Last week’s CNET average APY | This week’s CNET average APY | Weekly change** |
|---|---|---|---|
| 6 months | 4.11% | 4.10% | -0.24% |
| 1 year | 4.05% | 4.06% | 0.0025 |
| 3 years | 3.53% | 3.54% | 0.0028 |
| 5 years | 3.52% | 3.55% | 0.0085 |
Consider these things when choosing a CD
A competitive APY is important, but it’s not the only thing you should keep in mind. To find the right CD for you, weigh these factors, 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 insured with the Federal Deposit Insurance Corporation — or the National Credit Union Administration for credit unions — 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
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 financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The 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.
*APYs as of Jan. 31, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
**Weekly percentage increase/decrease from Jan. 21, 2025 to Jan. 27, 2025.
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