You’ve still got time to earn solid returns in a certificate of deposit, but don’t delay. The Federal Reserve cut interest rates three times in 2024, which means average CD yields are well off their recent record highs. While CD rates have stabilized in 2025 as the Fed holds pat, they might begin reducing rates again later this year.

Currently, the best CD rates offer up to 4.50% annual percentage yield. If you fund a certificate of deposit today, you could lock in a higher rate for years, depending on what term length best fits your financial objectives.

Today’s best CD rates: Earn up to 4.50%

Today’s highest CD rate of 4.50% is offered by MyBankingDirect.com on its six-month CD. Fortune monitors the top rates offered by leading U.S. financial institutions to help readers obtain the best possible return on their CD investments. Here are today’s highest CD rates:

Compare CD rates by term length

CD rates remain elevated for both longer-term and shorter-term certificates. While APYs are not the sole factor to weigh when selecting a financial institution for your CD investment, staying informed about the highest available rates can help guide a well-informed decision.

Compare CD rates at top national banks

If you’re unfamiliar with some or all of the institutions on the list above, that’s no accident. Big banks—Chase, PNC, and U.S. Bank, for example—are more focused on products like loans and credit cards rather than certificates of deposit. Consequently, they tend to offer CD rates that can suffer in comparison to smaller regional institutions or online banks.

CD rates news 2025

CD investors should understand that market rates are closely tied to Federal Reserve policy decisions, more specifically changes to the fed funds rate. Staying informed about fed interest rate policy is vital for anyone investing in certificates of deposit.

In January, the Federal Open Market Committee (FOMC) held its first semi-annual meeting of 2025. As expected, the central bank left the fed funds rate unchanged, which suggests that CD rates are likely to remain unchanged for the time being. The most recent FOMC meeting happened March 18-19 and once again there were no changes made to the federal funds rate—the next meeting is set for May 6-7.

The Fed cut rates three times in 2024, with the final rate reduction in December fixing fed funds at 4.25%-4.50%. The central bank cut rates to support the economy as inflation finally began to subside after its pandemic surge. As a consequence, CD rates came off their recent highs.

The strong average CD yields of 2022 and 2023 were a direct result of the Fed’s post-pandemic rate hike campaign. From March 2022 through July 2023, the FOMC hiked interest rates eleven times, taking fed funds from zero to 5.25%-5.50%. The central bank took action as inflation grew at higher rates than at any time since the 1980s.

Remember, current CD rates aren’t far off their recent highs. Investors have an opportunity to secure attractive rates on both short-term and long-term certificates. By placing a larger lump sum into your CD account, you can earn substantial interest.

Historical CD rates

In the early 1980s, CD rates surged into double digits, starkly contrasting with today’s lower rates. By 2019, however, the APY for a 5-year CD had slightly exceeded 3%.

Throughout the early 2020s, top rates typically remained below 1% APY. In recent years, rates saw a significant increase, with the best offerings surpassing 5% APY in 2024. In 2025, however, we are beginning to see rates stabilize and drop below this threshold.

How to get a good CD rate

Determining what constitutes a good CD rate involves striking a balance between the highest rate available and your willingness to lock your money up for a specified term.

For instance, investing a large sum in a five-year CD yielding 5% may not be a good choice if you need the money sooner or if you believe interest rates could start rising again. But generally speaking, rates that exceed the national average are considered worthwhile.

Key factors to consider when comparing CDs include:

Term length: Ensure it aligns with your savings goals and timeline.
APY: Higher rates typically are offered for longer terms.
Minimum deposit: Make sure you can meet the required initial balance.
Penalties: Understand the costs associated with withdrawing funds before maturity.
Deposit insurance: Verify that the bank is Federal Deposit Insurance Corp. (FDIC)- or National Credit Union Administration (NCUA)-insured for deposit protection.

Note that online banks typically offer better CD yields—just be mindful of any minimum balance requirements and associated fees. Choosing a bank over a broker can sometimes help avoid unnecessary fees.

Look into offerings from online banks

Online banks and fintech companies generally offer more competitive rates than big national banks. Large financial institutions primarily earn revenue from interest on loans, fees, and investments in securities.

In contrast, smaller banks and online fintech companies attract customers with competitive APYs on deposit accounts. Moreover, online banks typically operate with lower overhead costs, allowing them to pass better rates on to their clients.

Set up a CD ladder

CD ladders are perfect for savers who are hesitant to commit funds for extended periods of time. By diversifying savings across CDs with different maturity dates, you can benefit from both short-term accessibility and higher long-term interest rates.

For instance, say you invest $3,000 in three staggered CDs (1-year, 2-year, and 3-year). As each CD matures, you can reinvest the funds into a new 3-year CD. This approach allows annual access to your money along with the accrued interest.

Earn up to 4.50% APY with the best CD rates available today, April 30, 2025