- You can earn up to 4.65% APY with today’s top CDs.
- Experts expect the Fed will hold rates steady at its Jan. 28-29 meeting.
- The Fed is likely to cut rates later this year, making now the time to lock in a high APY.
The bad news: Inflation is inching back up. The good news: That gives savers more time to lock in a high certificate of deposit rate.
CD rates have been falling since the Fed cut interest rates at its last three meetings. But with inflation on the uptick again, experts expect the Fed will pause rates at its meeting this week. As a result, CD rates are likely to hold steady for the time being too.
Today’s best CDs earn up to 4.65% annual percentage yield, or APY. By locking in your APY now, you can ensure your returns stay the same even when the Fed cuts its benchmark rate again, likely in late spring or early summer.Â
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.
What does the Fed have to do with CD rates?
APYs on CDs and savings accounts have been dropping since the Fed cut interest rates at its last three meetings. But with inflation rising again, experts believe the Fed will hold rates steady at its Jan. 29 meeting. And banks are hedging their bets by keeping CD rates relatively flat for now, 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, certified financial planner and 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
How CD rates have changed over the last 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% | +0.25% |
| 3 years | 3.53% | 3.54% | +0.28% |
| 5 years | 3.52% | 3.55% | +0.85% |
How to choose the best CD for you
A competitive APY is important, but it’s not the only thing you should keep in mind.Â
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 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
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. 27, 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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