Top CD rates today: January 7, 2025 | Leading APYs drop on 5 terms
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Key takeaways
- The current leading CD rate across terms is 4.55 percent APY, offered on a six-month CD.
- Top APYs for many CD terms have been declining for months since peaking late in 2023.
- Overall, competitive APYs remain several times greater than national averages.
Today, we see top rates that are lower for five of the certificate of deposit (CD) terms monitored by Bankrate. This is due to Popular Direct lowering the annual percentage yields (APYs) for some of its offerings. As such, the highest yield across common CD terms is now 4.55 percent APY, which can be found on a six-month term. Shorter terms continue to earn higher APYs than longer terms, which has been the case since before Bankrate began this daily page in late 2023.
Bankrate monitors CD rates every weekday, and today’s top rates are listed in the table below, along with national average rates and the amount you’ll earn with $5,000 in a high-yield CD.
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 | Limelight Bank | 4.55% | 1.64% | $112 |
| 9-month | America First Credit Union | 4.45% | N/A | $166 |
| 1-year | Popular Direct | 4.50% | 1.72% | $225 |
| 18-month | Popular Direct | 4.25% | 1.81% | $322 |
| 2-year | Popular Direct | 4.20% | 1.48% | $429 |
| 3-year | America First Credit Union | 4.15% | 1.38% | $649 |
| 4-year | America First Credit Union | 4.20% | 1.45% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.41% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of January 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?
When shopping around for a CD, be sure to go with one in which the funds are federally insured. This means you won’t lose your money if the financial institution were to fail. Choose a bank that’s insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA). Under such federally insured institutions, CDs and share certificates are each insured for up to $250,000 per depositor, per insured bank or credit union, for each account ownership category.
Recent trends in top CD rates
Competitive CD APYs have been trending downward throughout 2024. For example, the highest one-year CD APY at the start of January 2024 was 5.66 percent, whereas it's currently 4.50 percent. 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.