The Federal Reserve has cut its target interest rate three times through 2024. This will have a negative impact on deposit account balances, meaning now may be your last chance to lock in today’s high rates with a certificate of deposit (CD). Here’s a look at today’s CD prices and where you can find the best deals.
As of January 20, 2025, CD rates are still competitive, especially for short terms. For example, several financial institutions offer CD rates of around 4.00% APY for terms of one year or less. Long-term CD rates aren’t that high, but the top offers still run around 3.00%-4.00% APY for three years and more.
Today, the highest CD rate is 4.27% APY, offered by NexBank on its 1-year CD term. However, there is a maximum opening deposit of at least $25,000.
The next highest rate is 4.25% APY, which Marcus is offered by Goldman Sachs on his one-year CD. A minimum deposit of $500 is required.
Here’s a look at some of the best CD rates available today from our verified partners.
See our picks for the best CD accounts available today>>
Considering CD, these rates are some of the highest available, especially when compared to national average rates, which are very low. It’s also important to note that online banks and credit unions often offer competitive rates compared to traditional brick-and-mortar banks.
Read more: What is a good CD rate?
Here’s a look at the average CD rate by term as of December 2024 (the most recent data available from the FDIC):
The highest national interest rate for CDs is 1.83% for one year. However, in general, today’s average CD rates represent some of the highest seen in nearly two decades, largely due to the Federal Reserve’s efforts to fight inflation by keeping interest rates high.
If you’re considering opening a CD, it’s important to choose one with a high APY and a term that matches your financial goals. Here are some tips for finding the best CD rates and accounts that suit your needs:
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Shop everywhere: It’s a good idea to check CD rates from a variety of financial institutions and compare your options before purchasing an account. You can easily compare CD prices online.
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Consider online banking: Online banks tend to have lower fees, which allows them to offer higher interest rates on CDs. In fact, online banks often have the most competitive rates available.
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Check the minimum deposit requirements: Higher CD rates may come with higher deposit requirements, so make sure the amount you plan to deposit meets the requirements to get the best value.
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Review account terms and conditions: Beyond the CD rate, look at the terms of early withdrawal penalties and automatic renewal policies. Some CDs offer more flexible terms, such as penalty-free CDs, which allow you to withdraw your money without payment before the maturity date.
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