The Clock Is Ticking on APYs Up to 4.65%. Today’s CD Rates, Jan. 13, 2025

A certificate of deposit can be a great way to maximize your earnings on cash you won’t need to use for some time. Since your interest rate is fixed when you open a CD, you don’t have to worry about dropping rates impacting your return. In a falling-rate environment like today’s, that’s especially valuable.

Timing is essential. Since rates are falling, the sooner you open a CD, the higher the rate you may be able to lock in. Right now, you can earn up to 4.65% annual percentage yield with today’s best CDs. That could change tomorrow.

“I wouldn’t bet on rates moving much higher in the near term, so I would pull the trigger now if fixed income were a priority,” said Noah Damsky, CFA, Principal of Marina Wealth Advisors.

Here are some of the highest CD rates right now and how much you could earn by depositing $5,000.

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.

Today’s CD rates are the highest you may see for a while

CD rates may still be attractive, but the days of sky-high APYs are over. APYs have been falling for months following a series of Federal Reserve rate cuts. The Fed doesn’t directly set CD rates, but banks tend to move in lockstep with its decisions. When the Fed cut rates, banks cut APYs on products like CDs and savings accounts and vice versa.

To fight COVID-era inflation, the Fed raised rates 11 times starting in March 2022, and CD rates soared, reaching 5.65% APY for the banks we track at CNET. They’ve come down considerably since then, especially in recent months as cooling inflation caused the Fed to cut rates at its last three meetings. With experts expecting more Fed rate cuts in 2025, locking in one of today’s best APYs can protect your earnings from additional drops.

Weigh these factors 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 factors too:

• When you’ll need your money: Early withdrawal penalties can eat into your interest earnings. So be sure to choose a term that fits your savings timeline. 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 amount to open an account — typically, $500 to $1,000. Others do not. How much money you have to set aside can help you narrow your options.
• Fees: Maintenance and other fees can eat into your earnings. Many online banks don’t charge fees because they have lower overhead costs than banks with physical branches. Still, read the fine print for any account you’re evaluating.
• Federal deposit insurance: Make sure any 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. 10, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

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