The Federal Reserve reduced its goal rate of interest thrice in 2024. This can have a ripple effect on deposit account rates, which suggests now may very well be your last probability to lock in today’s high rates with a certificate of deposit (CD). Here’s a have a look at today’s CD rates and where you will discover the perfect offers.

As of January 20, 2025, CD rates are still competitive, particularly for shorter terms. For instance, several financial institutions offer CD rates around 4.00% APY for terms of around a yr or less. Longer-term CD rates will not be quite as high, however the top offers still hover around 3.00%-4.00% APY for terms of three years and longer.

Today, the best CD rate 4.27% APY, which is obtainable by NexBank on its 1-year CD term. Nevertheless, there may be a big minimum opening deposit of $25,000.

The subsequent-highest rate is 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD. A minimum deposit of $500 is required.

Here’s a have a look at a few of the perfect CD rates available today from our verified partners.

See our picks for the perfect CD accounts available today>>

In the event you’re considering a CD, these rates are a number of the highest available, especially in comparison to the national average rates, that are significantly lower. It is also price noting that online banks and credit unions generally offer more competitive rates in comparison with traditional brick-and-mortar banks​.

Read more: What’s an excellent CD rate?

Here’s a have a look at the common CD rate by term as of December 2024 (essentially the most recent data available from the FDIC):

The very best national average rate of interest for CDs stands at 1.83% for a 1-year term. Nevertheless, basically, today’s average CD rates represent a number of the highest seen in nearly twenty years, largely resulting from the Federal Reserve’s efforts to combat inflation by keeping rates of interest elevated.

In the event you’re excited about opening a CD, it’s necessary to decide on one with a high APY and term length that matches your financial goals. Listed here are some suggestions for locating the perfect CD rates and accounts that match your needs:

• Shop around: It’s an excellent idea to guage CD rates from a wide range of financial institutions and compare your options before selecting an account. You possibly can easily compare CD rates online.

• Consider online banks: Online banks are likely to have lower overhead costs, which allows them to supply higher rates of interest on CDs. The truth is, online banks often have essentially the most competitive rates available.

• Check minimum deposit requirements: Higher CD rates might include higher minimum deposit requirements, so make sure that the quantity you propose to deposit aligns with the necessities to get the perfect rate.

• Review account terms and conditions: Beyond the CD’s rate, have a look at terms for early withdrawal penalties and auto-renewal policies. Some CDs offer higher terms for flexibility, akin to no-penalty CDs, which permit you to withdraw your funds and not using a fee before the maturity date.