Find out which banks offer the best CD rates right now. If you’re looking for a safe place to keep your savings, a certificate of deposit (CD) can be a great option. These accounts typically offer higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely.
Learn more about the current CD rate situation and how to find the best rates available.
CD rates are relatively high compared to historical averages. That said, CD rates have been falling since last year, when the Federal Reserve began cutting its target rate. The good news is that several financial institutions offer competitive rates of 4% APY and more, particularly online banks.
Today, the highest CD rate is 4% APY. This rate is offered by Marcus by Goldman Sachs on their 1-year CD.
Below are some of the best CD rates available today from our verified partners:
The Federal Reserve began reducing the federal funds rate in light of slowing inflation and a general improvement in the economic outlook. It cut its target rate three times by the end of 2024 by a total of one percentage point.
In December, the Federal Reserve announced its third rate cut for 2025 and additional cuts could be on the horizon in 2026. However, it is unclear when that will happen and how many cuts the Fed plans to make.
The federal funds rate does not directly affect deposit interest rates, although they are correlated. When the Federal Reserve cuts rates, financial institutions typically follow suit (and vice versa). So now that the Federal Reserve has lowered its rate, CD rates are starting to fall again. That’s why now may be a good time to put your money in a CD and lock in the best current rates.
The process for opening a CD account varies by financial institution. However, there are some general steps you can expect to follow:
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Research CD Rates: One of the most important factors to consider when opening a CD is whether the account offers a competitive rate. You can easily compare CD rates online to find the best deals.
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Choose an account that meets your needs: While the interest rate on a CD is a key consideration, it shouldn’t be the only one. You should also evaluate the length of the CD term, minimum opening deposit requirements, and fees to make sure a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that is too long; Otherwise, you will be subject to an early withdrawal penalty if you need to withdraw your funds before the CD matures.
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Prepare your documents: When opening a bank account, you’ll need to provide some information, including your Social Security number, address, and driver’s license or passport number. Having these documents on hand will help speed up the application process.
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Complete the application: Today, many financial institutions allow you to apply for an account online, although in some cases you may need to visit the branch. Either way, the request for a new CD should only take a few minutes to complete. And in many cases, you’ll get your approval decision instantly.
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Fund the account: Once your CD application is approved, it’s time to fund the account. This can usually be done by transferring money from another account or mailing a check.
Read more: Step-by-step instructions for opening a CD