CD rates today, January 16, 2025 (locked up to 4.35% API)

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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 prices can vary widely. Learn more about CD prices today and the best rates available on high-yield CDs.

CD rates are relatively high compared to historical averages. This is especially true for a short period of time (a year or less). For short-term CDs, you can expect higher discounts to hover around 4% API. Long-term CDs, however, are slightly smaller.

Today, the highest CD rate is 4.35% APY, offered by Ssynchrony on its 13-month CD. No minimum opening deposit required.

Check out some of the best CD prices available today from our trusted partners:

The Federal Reserve has begun reducing the federal funds rate in light of inflation and an overall improved economic outlook. In the year By the end of 2024, he has tripled his goal to a total of one percent.

The Federation It has indicated that it will continue to reduce the target amount in 2025. However, it now plans a total of two reductions from its previous forecast of four.

The federal funds rate does not directly affect deposit interest rates, although they are related. When the Fed cuts interest rates, financial institutions typically follow suit (and vice versa). So now that the Fed has cut rates, CD rates are starting to fall again. That’s why it might be a good time to put your money in a CD and lock in today’s best rates.

The process for opening a CD account varies by financial institution. However, there are a few general steps you can expect to follow.

  • Research CD Rates: One of the most important things to consider when opening a CD is whether the account offers a competitive rate. You can easily compare CD prices online to find the best deals.

  • Choose an account that meets your needs: While the CD interest rate is a key issue, it shouldn’t be the only one. You should also review the CD’s term length, minimum opening deposit requirements, and fees to ensure that a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that’s too long, or you’ll face an early withdrawal penalty if you have to withdraw your money before the CD matures.

  • Prepare your documents: When you open a bank account, you’ll need to provide some information, including your Social Security number, address, and driver’s license or passport number. Having these documents at hand will help facilitate the application process.

  • Complete the application. Nowadays, many financial institutions allow you to apply for an account online, although in some cases you may need to visit a branch. Either way, it only takes a few minutes to complete a new CD application. And in many cases, you’ll get your approval decision right away.

  • Fund the account: Once your CD application is approved, it’s time to fund the account. This can usually be done by transferring money from another account or sending a check in the mail.

Read more: Step-by-step instructions for opening a CD