If you’re looking for a safe place to store your savings, a certificate of deposit (CD) may be a good choice. These accounts often offer higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates and where to find high-yield CDs at the best rates available today.
Current CD rates vary quite a bit. Overall, however, CD interest rates are starting to decline following the Fed’s decision to cut its benchmark interest rate three times in the latter part of 2024. However, some banks still offer competitive CD interest rates.
See our picks for the best CD accounts available today >>
For those that are, top rates reach around 4% APY. This is especially true for shorter terms of one year or less.
Today, the highest CD interest rate is 4.27% APY, offered by NexBank on its 1-year CD. However, a large minimum opening deposit of $25,000 is required.
The second highest rate can be found at two banks: Synchrony (term of 13 months) and Marcus from Goldman Sachs (1 year). Both banks offer 4.25% APY.
Here’s a look at some of the best CD rates currently available from our verified partners:
Compare these rates to the national average as of December 2024 (the most recent data available from the FDIC):
Compared to today’s top CD rates, the national averages are much lower. This underlines the importance of shopping around for the best CD rates before opening an account.
Online banks and neobanks are financial institutions that operate exclusively via the internet. This means they have lower overhead costs than traditional brick-and-mortar banks. As a result, they can pass those savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you’re looking for the best CD rates available today, an online bank is a good place to start.
However, online banks aren’t the only financial institutions offering competitive CD rates. It’s also worth contacting credit unions. As not-for-profit financial cooperatives, credit unions return their profits to customers, who are also member-owners. While many credit unions have strict membership requirements limited to those who belong to certain associations or work or live in certain areas, there are also several credit unions that virtually anyone can join.
Whether or not you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings tool; they don’t lose money (in most cases), are covered by federal insurance, and allow you to lock in the best rates today.
However, there are some disadvantages to consider. First, you must keep your money on deposit for the entire term or you will be subject to an early withdrawal penalty. If you want flexible access to your money, a high-yield savings account or money market account may be a better choice.
Furthermore, while current CD rates are high by historical standards, they do not match the returns you could earn by investing your money in the market. If you’re saving for a long-term goal such as retirement, a CD won’t provide the growth you need to reach your savings goal in a reasonable time frame.
Read more: Short or long term CD: which one suits you best?
