CD rates today, January 20, 2025 (lock in up to 4.27% API)

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The Federal Reserve has cut interest rates three times by 2024. This has a significant impact on deposit rates, which means now may be your last chance to lock in high rates with a certificate of deposit (CD). Here’s where to find today’s CD rates and the best deals.

As of January 20, 2025, CD rates are still competitive, especially for short periods. For example, many financial institutions rate CDs around 4.00% APR for a term of one year or less. Long-term CD rates aren’t quite as high, but the higher rates still hover around 3.00%-4.00% APY for three years and longer.

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.

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If you’re considering a CD, these rates are among the highest available, especially when compared to national average rates, which are quite low. It’s also worth noting that online banks and credit unions offer more competitive rates compared to traditional brick-and-mortar banks.

Read more: What is a good CD rate?

See the average CD rate until December 2024 (most recent data from FDIC)::

The highest national average interest rate for CDs stands at 1.83% for a one-year term. But, overall, today’s average CD rates represent some of the lowest seen in nearly two decades, largely due to the Federal Reserve’s efforts to fight inflation by raising interest rates.

If you’re considering opening a CD, it’s important to choose one with a high API and a maturity that matches your financial goals. Here are some tips for finding the best CD rates and accounts that match your needs:

Shop around. It’s a good idea to review CD rates from different financial institutions and compare your options before settling on an account. You can easily compare CD prices online.
Consider online banking: Online banks have lower interest costs, allowing them to offer higher interest rates on CDs. In fact, online banks often have very competitive rates.
Check the minimum deposit requirements: Higher CD rates may come with higher minimum deposit requirements, so make sure the amount you plan to deposit fits the requirements to get the best rate.
Review account terms and conditions: Beyond the CD rate, look at early withdrawal penalties and auto-renewal policies. Some CDs offer better terms for flexibility, such as no-penalty CDs, which allow you to withdraw your funds before the due date without paying.