Top CD rates today: January 17, 2025 | Lock in up to 4.51% APY

Opening a fixed-rate certificate of deposit (CD) now should give you peace of mind that your savings will continue to earn the same annual percentage yield (APY) should rates continue to retreat. We've seen 13 drops in highest CD APYs so far in January, although competitive CD rates continue to outpace the 2.9 rate of inflation.

As we finish out the second full week of January, the highest APY across CD terms is 4.51 percent, which is available on a six-month term from CIBC Bank USA. Longer terms than that are earning slightly lower APYs between 4.15 percent and 4.40 percent.

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 top CD rates by term

Note: Annual percentage yields (APYs) shown are as of January 17, 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.

When is a CD a good idea?

You might decide to open a CD when rates are likely to start falling on deposit accounts. Thanks to its fixed interest rate, a competitive CD will continue to earn its high yield for the full term, even in a falling rate environment. Another benefit of the guaranteed rate is you’ll be able to calculate in advance how much interest the CD will earn through the end of the term.

A CD may be a good idea if you have a sum of money you do not need access to for a specific amount of time. For example, if you're saving to buy a home in 2026, a one-year CD would mature in January of next year. For emergency funds and other savings you might need access to at any time, a high-yield savings account may be a better fit.

What the current rate environment means for CDs

Recent federal funds rate changes: The Federal Reserve lowered its benchmark interest rate three times in recent months, and 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 recent 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.

• Research methodology

  Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

  In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.