CD Rates Today, January 17, 2025 (Up to 4.27% APY Returns)
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.
Today’s CD prices vary quite a bit. Overall, however, CD rates have begun to decline as the Fed decides to cut its benchmark rate three times in late 2024. Despite this, some banks are still offering competitive CD rates.
Check out our picks for the best CD labels available today>>
For those, top rates are up to 4% API. This is especially for a short period of one year or less.
Today, the highest CD rate is 4.27% APY, which is over the 1-year CD term at NexBank. However, there is a maximum minimum opening deposit of $25,000.
The next highest rate is 4.25% API, offered by Marcus at Goldman Sachs on its 1-year CD. A minimum deposit of $500 is required.
Check out some of the best CD prices available today:
Compare these rates to the national average as of December 2024 (most recent data from FDIC)::
Compared to today’s high CD rates, national averages are very low. This highlights the importance of shopping around for the best CD rates before opening an account.
Online banks and neobanks are financial institutions that operate exclusively on the web. That means they have lower overhead costs than traditional brick-and-mortar banks. As a result, they are able to pass those savings on to their customers in the form of lower interest rates on deposit accounts (including CDs). If you’re looking for the best CD rates available today, online banking is a great place to start.
However, online banks are not the only financial institutions that offer competitive CD rates. It’s also worth checking with credit unions. As non-profit financial cooperatives, credit unions return their profits to their customers, who are also member-owners. Although many credit unions have strict membership requirements, there are also many credit unions that anyone who belongs to or works in or lives in certain areas can join.
Whether or not 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), they’re federally insured, and they let you lock in today’s best rates.
However, there are some drawbacks to consider. First, you must keep your money on deposit the entire time, otherwise you will face an early withdrawal penalty. If you want flexible access to your money, a high-yield savings account or money market account may be a better choice.
Additionally, even though today’s CD rates are high by historical standards, they don’t match the returns you can get from investing your money in the market. If you’re saving for a long-term goal like retirement, a CD won’t provide the growth you need to reach your savings goal in a reasonable time frame.
Read more: Short-Term or Long-Term CD: Which is Better?
