APYs remain attractive, but that won’t be the case forever.
There’s still time to lock in a great annual percentage yield (APY) on a certificate of deposit — but don’t wait too long.
While the Federal Reserve held interest rates steady at last week’s meeting, APYs have been quietly falling for weeks now and this trend is likely to continue as banks anticipate a Fed rate cut later this year. Experts recommend taking advantage of high APYs now to maximize your returns.
You can earn up to 4.5% APY with today’s top CDs. That’s more than three times the national average for some terms. But the key is to act now.
Best CD rates this week
| Term | Highest APY* | Bank | Estimated earnings on $1,000 deposit | Estimated earnings on $5,000 deposit | Estimated earnings on $10,000 deposit |
|---|---|---|---|---|---|
| 6 months | 4.50% | CommunityWide Federal Credit Union | $22.25 | $111.26 | $222.52 |
| 1 year | 4.40% | CommunityWide Federal Credit Union | $44.00 | $220.00 | $440.00 |
| 3 years | 4.15% | America First Credit Union | $129.74 | $648.69 | $1,297.38 |
| 5 years | 4.20% | America First Credit Union | $228.40 | $1,141.98 | $2,283.97 |
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
Why you should open a CD now
CDs offer many benefits, including:
😌 Low risk
CDs held by an FDIC-insured bank or NCUA-insured credit union are protected for up to $250,000 per depositor, institution and account category. That means that if your bank fails, your money is safe. Other investments, like stocks, may potentially yield higher returns over the long term but they’re also volatile, which means you could lose money at any time.
📈 Guaranteed returns
Your APY is locked in when you open a CD, unlike with savings accounts, where interest rates can vary at any time. A CD’s fixed rate makes it easy to calculate how much interest you’ll earn over time and protects your funds from rate drops after you open your account.
💰 Competitive rates
Traditional savings accounts offer minimal APYs, sometimes as low as 0.01%. Today’s top-yielding CDs have APYs of 4.50% or more, which can make a difference in your interest earnings and help your money keep pace with inflation.
✋ Barrier to access
Many CDs, however, charge an early withdrawal penalty if you take your money out before the term ends. This can help you resist the urge to dip into your funds before you need them.
Need flexible access to your funds? Consider a high-yield savings account
CDs have plenty of perks but they’re not always the right fit for your needs. A high-yield savings account might be a better choice if:
🏧 You want ready access to your funds
You’ll pay a penalty if you take money out of a CD before it matures. You can withdraw cash from a savings account at any time, free of charge (as long as you mind any monthly withdrawal limits). This makes HYSAs a great fit for an emergency fund.
🫰 You don’t have a ton of money to deposit
Some CDs require a minimum deposit to open an account, typically $500 to $1,000. If you can’t find an account with an attractive APY for the amount you want to deposit, try looking into a high-yield savings account with a low or no minimum deposit.
💵 You want to add funds over time
Most CDs only allow a one-time deposit. If you’d like to continue adding money to your savings after you’ve opened the account, consider a high-yield savings account.
💰You can earn up to 5% APY on today’s best high-yield savings accounts. Check out top savings rates now.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The current banks included in CNET’s weekly CD averages include Alliant Credit Union, Ally Bank, America First Federal Credit Union, American Express National Bank, Barclays, Bask Bank, BMO Alto, Bread Savings, Capital One, CFG Bank, CIT, CommunityWide Federal Credit Union, Discover, EverBank, First Internet Bank of Indiana, First National Bank of America, Forbright, LendingClub, Limelight Bank, Marcus by Goldman Sachs, MYSB Direct, NexBank, Quontic, Rising Bank and Synchrony.
*APYs as of May 9, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
