Don’t miss your chance to earn up to 4.65% APY. Today’s CD interest rates on January 10, 2025
- Today’s top CDs have APYs as high as 4.65%.
- If the Fed continues to cut interest rates in the coming months, APY may continue to fall.
- Your annual earnings are fixed when you open a CD, so opening a CD now maximizes your earnings.
The earlier you open a CD, the more interest you can earn.
Today’s best CDs offer annual yields (APY) of up to 4.65%. But APY has been declining after the Fed cut interest rates at the past three meetings, and experts expect further rate cuts in the coming months. Therefore, the longer you wait to open a CD, the lower the APY you can lock in.
“I wouldn’t bet on rates going significantly higher in the short term, so if fixed income was a priority, I would pull the trigger now,” said Noah Damsky, CFA, principal at Marina Wealth Advisors.
Here are some of the highest CD rates available right now and how much you can earn by depositing $5,000.
Today’s Best CD Rates
| semester | Maximum annualized interest rate* | bank | Estimated revenue |
|---|---|---|---|
| 6 months | 4.65% | community federal credit union | $114.93 |
| 1 year | 4.45% | community federal credit union | $222.50 |
| 3 years | 4.15% | America’s First Credit Union | $648.69 |
| 5 years | 4.25% | America’s First Credit Union | $1,156.73 |
Experts recommend comparing interest rates before opening a CD account to get the best possible annual return. Enter your message below to get the best prices in your area from CNET partners.
Why now is the time to open the CD
The reserve requirement ratio has been falling for months due to a series of interest rate cuts by the Federal Reserve. The Fed does not directly set deposit rates, but its federal funds rate determines the cost for banks to borrow from each other. When this rate is raised, banks tend to increase the annual interest rate on certificates of deposit and savings accounts to attract new customers and increase cash flow. When it lowers that rate, the bank gives up those APRs.
As the Federal Reserve raises interest rates to combat inflation in the COVID-19 era, deposit rates have soared, with the annualized interest rate of banks we track at CNET reaching 5.65%. Since then, interest rates have fallen sharply, especially in recent months, as cooling inflation prompted the Fed to cut rates at its last three meetings. But the highest APY (4.65%) is still more than double the national average in some ways.
With experts predicting further rate cuts from the Federal Reserve in 2025, locking in one of today’s APYs can protect your income from further declines. If you’ve been considering putting your money into a CD, doing so as soon as possible can help increase your earning potential.
“While some banks may still offer competitive interest rates to attract deposits, the overall trend is likely to be towards lower interest rates, especially if the Fed continues to maintain its current approach to managing inflation while avoiding a further slowdown in the economy. ” he said.Taylor Kovar, CFP, founder and CEO of 11 Financial.
What happened to CD rates last week
| semester | CNET average APY last week | CNET average APY this week** | Weekly changes*** |
|---|---|---|---|
| 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 comparing CDs
Competitive APY is important, but it’s not the only factor you should consider. To find the CD that’s right for you, also weigh the following factors:
- When you need money: Early withdrawal penalties can eat into your interest income. So be sure to choose a term that fits your savings schedule. Alternatively, you can choose a no-penalty CD, although the APY may not be as high as a traditional CD of the same term.
- Minimum deposit requirements: Some CDs require a minimum amount to open an account, usually $500 to $1,000. Others don’t. How much money you need to set aside can help you narrow down your options.
- cost: Maintenance fees and other expenses eat into your income. Many online banks charge no fees because their administrative costs are lower than banks with physical branches. However, please read the fine print of any account you are evaluating.
- Federal Deposit Insurance: Make sure any bank or credit union you consider is a member of the FDIC or NCUA, so your money is protected even if the bank fails.
- Customer ratings and reviews: Check out sites like Trustpilot to find out what customers are saying about your bank. You want a bank that is responsive, professional and easy to work with.
methodology
CNET reviews CD rates based on the latest APY information from the issuer’s website. We evaluated CD rates from more than 50 banks, credit unions, and finance companies. We evaluate CDs based on APY, 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, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Union.
*APY as of January 9, 2025, based on banks we track at CNET. Earnings are based on APY and assume interest compounded annually.
**Weekly percentage increase/decrease between December 30, 2024 and January 6, 2025.
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