The Federal Reserve has cut its target interest rate three times in 2024. This will have a ripple effect on rates on deposit accounts, meaning now is your last chance to lock in today's high rates with 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 shorter terms. For example, several financial institutions offer CD rates around 4.00% APY for terms of about one year or less. Long-term CD rates aren't as high, but the best deals are still around 3.00% – 4.00% APY for three years and longer.
Today, the highest CD rate is 4.27% APY offered by NexBank on a 1 year CD. However, there is a large minimum initial deposit of $25,000.
The next highest rate is the 4.25% APY Marcus offers from Goldman Sachs on its 1-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.
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If you are considering a CD, these prices are some of them highest availableespecially when compared to the national average rates, which are significantly lower. This is also worth noting online banks and credit unions they generally offer more competitive rates compared to traditional brick-and-mortar banks.
Read more: What is a good CD speed?
Here's a look at the average CD rate by period to December 2024 (latest data available from FDIC):
The highest national average interest rate for CDs is 1.83% for 1 year. In general, however, today's average CD rates are some of the highest in nearly two decades, largely due to the Federal Reserve's efforts to fight inflation by keeping interest rates high.
If you are thinking about opening the CDit's important to choose one with a high APY and term length that matches your financial goals. Here are some tips for finding the best CD rates and accounts that fit your needs:
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Shop nearby: Before opening an account, it's a good idea to evaluate CD rates from different financial institutions and compare your options. You can easily compare CD prices online.
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Consider online banks: Online banks tend to have lower overhead costs, 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 minimum deposit requirements, so make sure the amount you plan to deposit meets the requirements to get the best rate.
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Read the account terms and conditions: In addition to the CD rate, check the terms for early withdrawal penalties and auto-renew policies. Some CDs offer better conditions for flexibility, such as penalty free CDwhich allow you to withdraw your funds before the due date without charge.
