If you’re looking for a safe place to store your savings, a certificate of deposit (CD) can be a great 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 today and where to find high-yield CDs with the best rates available.
Today’s CD rates vary quite a bit. Overall, however, CD rates are starting to decline due to the Fed’s decision to cut its benchmark rate three times in the later part of 2024. Yet some banks still offer competitive CD rates.
Check out 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 rate is 4.30% APY, offered by Marcus by Goldman Sachs on its 9-month CD. A minimum opening deposit of $500 is required.
Here’s a look at some of the best CD rates available today:
Compare these rates to the national average as of January 2025 (the most recent data available from the FDIC):
Compared to today’s best CD rates, national averages are much lower. This emphasizes the importance of shopping for the best CD rates before opening an account.
Online banks and neobanks are financial institutions that operate exclusively via the internet. That means they have lower overhead costs than traditional banks 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 great place to start.
However, online banks aren’t the only financial institutions offering competitive CD rates. It’s also worth checking with credit unions. As nonprofit financial cooperatives, credit unions return their profits to customers, who are also members. While many credit unions have strict membership requirements that are limited to those who belong to certain associations or live in certain areas, there are also several credit unions that allow almost anyone to join.
Whether you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings vehicle – they don’t lose money (in most cases), are backed 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 full term or you will be subject to an early withdrawal penalty. If you want flexible access to your funds, a high-yield savings account or money market account may be a better choice.
Furthermore, while today’s CD rates are high by historical standards, they fall short of the returns you could get 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 is Best for You?