Top CD rates today: February 7, 2025 | Lock in your rate now
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Key takeaways
- The current leading CD rate across terms is 4.50 percent APY, offered for a three- and nine-month term.
- Top APYs for many CD terms have declined slightly in recent months since peaking late in 2023.
- Opening a fixed-rate CD now can help you lock in a relatively high yield before APYs potentially drop further.
Some savers who expect the Federal Reserve to lower interest rates in the future are locking in a fixed yield now on a certificate of deposit (CD). Opening a CD now ensures you’ll reap the benefit of a high annual percentage yield (APY) for the entire length of the CD’s term.
The leading APY across CD terms is 4.50 percent, and it’s offered on a three-month term from Quontic Bank and a nine-month term from Bask Bank. The required minimum deposits are $500 and $1,000 respectively. You’ll find that many shorter terms are earning higher yields than longer ones in the current rate environment.
Check out Bankrate’s table below for the highest APY on CD terms from three months to five years, as well as how much $5,000 would earn for each term.
Today's best CD rates by term
| CD term | Institution offering top APY | Highest APY | National average APY | Estimated earnings on $5,000 with top APY |
|---|---|---|---|---|
| 3-month | Quontic Bank | 4.50% | 1.30% | $55 |
| 6-month | Bask Bank | 4.45% | 1.75% | $110 |
| 9-month | Bask Bank | 4.50% | N/A | $168 |
| 1-year | Bask Bank | 4.40% | 1.83% | $220 |
| 18-month | TAB Bank | 4.16% | 2.13% | $315 |
| 2-year | Popular Direct | 4.20% | 1.62% | $429 |
| 3-year | America First Credit Union | 4.15% | 1.54% | $649 |
| 4-year | America First Credit Union | 4.20% | 1.70% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.53% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of February 7, 2025. APYs for some products may vary by region.
N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.
Is a CD a safe place to keep your money?
If you’re considering opening a CD with a bank, be sure it’s covered by the Federal Deposit Insurance Corp. (FDIC). Likewise, if it’s from a credit union, make sure it's covered by National Credit Union Administration (NCUA) insurance. This deposit insurance guarantees your money is safe were the financial institution to fail, as long as the money is within the limits and guidelines.
How the current rate environment impacts CDs
Recent federal funds rate changes: The Federal Reserve held rates steady during its January meeting. Before that, the Federal Reserve lowered its benchmark interest rate three times. The federal funds rate currently stands at a target range of 4.25-4.5 percent. Prior to these rate cuts, the Fed had gradually raised rates 11 times in 2022 and 2023, and rates stood at a 23-year high leading up to the September 2024 cut.
What this means for deposit accounts such as CDs: Yields on competitive savings accounts and CDs tend to move in lockstep with the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. The Fed’s December rate cut could spur further decreases in CD APYs.
Prior to the September 2024 rate cut, the Fed had held rates steady since July 2023. Meanwhile, top CD APYs peaked in late 2023 and have since been decreasing gradually, as illustrated below.
CD glossary
Here are some terms you’ll likely come across when choosing a CD.
- Add-on CD: An add-on CD enables you to make additional deposits after your initial investment. This feature affords more flexibility than traditional CDs, which only allow one deposit at the beginning of the term.
- Annual percentage yield (APY): A percentage that indicates how much interest a CD earns in one year, which takes into account the effect of compounding.
- Brokered CD: A type of CD issued by a bank but sold through a brokerage firm or other financial institution.
- CD ladder: An investment strategy that involves purchasing multiple CDs with varying maturity dates to provide liquidity and take advantage of higher rates.
- Early withdrawal penalty: A fee charged if funds are withdrawn from a CD before the maturity date. Penalties often range anywhere from 90 days to 365 days’ worth of interest.
- Grace period: A specific time after the maturity date during which an account holder can make changes to the CD without penalties. A grace period typically ranges from five to 14 days.
- IRA CD: A CD that’s held within an individual retirement account.
- Minimum opening deposit: The lowest amount of money required to open a CD account, which can vary by institution. Some institutions don’t have a minimum deposit requirement.
- No-penalty CD: A type of CD that allows you to withdraw your money without facing a penalty while providing a fixed APY.
- Promotional CD: Also known as a bonus or special CD, it’s a CD with an above average APY. These may be offered by banks and credit unions as a way to obtain new customers.
- Jumbo CD: A CD that has a high minimum balance requirement, typically $100,000, sometimes as low as $95,000. This type of CD tends to offer a higher interest rate than regular CDs with the same term.
- Bump-up CD: Also known as a “raise-your-rate CD,” a bump-up CD provides savers with the option to increase the CD’s APY without having to change its term. Generally, only one rate increase is allowed during its term.