Top CD rates today: January 8, 2025 | Earn up to 4.55% APY
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Key takeaways
- The highest CD rate across terms is 4.55 percent APY, offered on a six-month term.
- You'll find yields near 4.50% on various CD terms.
- Highest CD rates on some terms are at least 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.
In the current rate environment for certificates of deposit (CDs), you’ll find shorter terms are earning higher annual percentage yields (APYs) than longer terms. Having said that, today we see a 0.05 percent decrease in the leading APY for a nine-month CD. The highest APY for that term is now 4.40 percent, and it’s available from America First Credit Union.
In total, the top yields are currently available from a pool of just three financial institutions — although many other banks and credit unions offer similar, competitive rates. Bankrate monitors the top and average rates every weekday, and you’ll find today’s top CD rates in the table below.
Today's 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% | 1.23% | $55 |
| 6-month | Limelight Bank | 4.55% | 1.65% | $112 |
| 9-month | America First Credit Union | 4.40% | N/A | $164 |
| 1-year | Popular Direct | 4.50% | 1.72% | $225 |
| 18-month | Popular Direct | 4.25% | 1.80% | $322 |
| 2-year | Popular Direct | 4.20% | 1.49% | $429 |
| 3-year | America First Credit Union | 4.15% | 1.39% | $649 |
| 4-year | America First Credit Union | 4.20% | 1.44% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.39% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of January 8, 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.
Locking in a CD rate now could benefit you down the line
An upside of putting your funds into a guaranteed-rate CD is you’ll continue to earn the fixed APY for its entire term, even if the bank lowers the yields on new CDs it issues in the meantime. Rates on competitive CDs are currently outpacing inflation, which is currently at a rate of 2.7 percent.
The Fed cut its benchmark rate three times in 2024, on Sept. 18, Nov. 7 and Dec. 18, for a total of a full percentage point, or 100 basis points. The current federal funds rate range is 4.25 to 4.5 percent. Fed officials may choose to lower rates further in 2025. The next rate-setting meeting is scheduled for Jan. 29, 2025.
How inflation impacts monetary policy
After holding its key benchmark rate steady since July 2023 to combat high inflation, officials cut the federal funds rate by a combined total of one percentage point, or 100 basis points, in three recent rate-setting meetings. These moves come at a time when the consumer price index (CPI), a measure of inflation, has decreased significantly, overall, from its decades-high annual rate of 9.1 percent in June 2022. It’s currently at 2.7 percent.
"We are committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal," Fed Chair Jerome Powell said in remarks following the Federal Open Market Committee meeting in November.The current rate of inflation is a significant factor that affects what the Fed decides to do with rates. A decrease in the federal funds rate, say close to or below the current inflation rate of 2.7 percent, can be bad for savers. Namely, it can translate to lower APYs on many CDs and savings accounts. Meanwhile, a fed rate cut can be good for borrowers as interest rates tend to decrease on loans.
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.