Don’t sleep on APYs up to 4.65%. CD prices today, January 8, 2025

A certificate of deposit can help you grow your money safely and reliably, but the CD you choose can make a big difference in how much you earn. And so is the timing.

today Best CDs It boasts annual percentage yields, or APY, of up to 4.65%. However, annual interest rates have fallen since the Fed cut interest rates at its last three meetings. This means that the earlier you open a CD, the higher the APY you may be able to lock in — and the more earning potential you can make.

Here are some of the highest CD rates at the moment and how much you can earn by depositing $5,000.

Today’s best CD prices

condition	Highest APY*	Bank	Estimated profits
6 months	4.65%	Community Federal Credit Union	$114.93
1 year	4.45%	Community Federal Credit Union	$222.50
3 years	4.15%	First American Credit Union	$648.69
5 years	4.25%	First American 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 the best CNET Partners rate for your area.

Why you should open a CD today

CD prices have been falling for several months in response to a series of… Interest rate cuts by the Federal Reserve. The Fed does not set interest rates on loans directly, but the federal funds rate determines how much it costs banks to borrow and lend to each other. When they raise this rate, banks tend to raise APYs on CDs and Savings accounts To attract new customers and enhance their cash flow. When banks lower this rate, banks drop APYs.

The Fed raised interest rates to combat inflation in the age of the coronavirus, and certificate of deposit rates rose, reaching 5.65% year over year for the banks we track at CNET. They have fallen significantly since then, especially in recent months as slowing inflation has led the Federal Reserve to cut interest rates at its last three meetings. But the highest APY – 4.65% – is still more than double National average For some terms.

And with experts predicting further Fed rate cuts in 2025, locking in one of these APYs today could protect your dividends from additional declines. If you’re considering storing your money in a CD, doing so as soon as possible can help you boost your earnings potential.

Taylor Kovar, founder of CFP, said: “While some banks may still be offering competitive interest rates to attract deposits, the overall trend is likely to be lower rates for now, especially if the Fed stays on its current path of managing inflation while avoiding further of economic slowdown. And CEO of the company 11 Finance.

How have CD prices changed in the past week?

condition	CNET Average APY last week	CNET Average APY**	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 choosing a CD

A competitive APY is important, but it’s not the only thing you should look at. To find the right CD for you, evaluate these factors as well:

• When you’ll need your money: Penalties for early withdrawal It could eat into your interest earnings. So make sure you choose a term that fits your savings timeline. Alternatively, you can select A CD without penaltyalthough the APY may not be as high as you would get with a traditional CD with the same term.
• Minimum deposit requirements: Some CDs require a minimum to open an account – usually between $500 and $1,000. Others don’t. The amount of money you have to set aside can help you narrow down your options.
• expenses: Maintenance and other fees can eat into your profits. a lot Online banks They do not charge fees because their overhead costs are lower than banks with physical branches. However, read the fine print of any account you’re evaluating.
• Federal deposit insurance: Make sure which bank or Credit union Are you considering becoming 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 source sites. 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.

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, First American Federal Credit Union, Federal Credit Union Community, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.

*APYs as of January 7, 2025, based on banks we track at CNET. Earnings are based on APYs and assume interest compounded annually.

**Weekly percentage increase/decrease from December 30, 2024 to January 6, 2025.

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