Top CD rates today: January 14, 2025 | Lock in a high rate now
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Key takeaways
- Today's highest CD rate across terms is 4.55 percent APY, offered on a six-month CD.
- Top APYs have declined slightly in recent months since peaking late in 2023.
- Highest CD rates on some terms are around triple the national averages.
- Competitive CD APYs may decrease further, especially if the Federal Reserve cuts rates again. Savers could still benefit from locking in high yields at this time.
Some savers who expect the Federal Reserve to lower interest rates further 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. Currently, the leading APY across CD terms is 4.55 percent, which is offered on a six-month CD from Popular Direct. Shorter terms continue to earn higher APYs than longer ones in the current rate environment.
The table below shows top CD rates for the most common terms, as well as national averages and the amount you can earn in interest with a $5,000 deposit.
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 | Popular Direct | 4.51% | 1.27% | $55 |
| 6-month | Popular Direct | 4.55% | 1.69% | $112 |
| 9-month | America First Credit Union | 4.40% | N/A | $164 |
| 1-year | Popular Direct | 4.50% | 1.73% | $225 |
| 18-month | Popular Direct | 4.25% | 1.83% | $322 |
| 2-year | Popular Direct | 4.20% | 1.51% | $429 |
| 3-year | America First Credit Union | 4.15% | 1.43% | $649 |
| 4-year | America First Credit Union | 4.20% | 1.47% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.42% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of January 14, 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 certificate of deposit safe?
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.
Recent trends in top CD rates
Competitive CD APYs have been trending downward throughout 2024 and in the start of 2025. For example, the highest one-year CD APY at the start of January was 5.66 percent, whereas it was 4.50 percent on Jan. 14. Among the popular terms Bankrate monitors for this page, all rates have seen steeper declines in the second half of 2024, as compared to the first half.
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.