Key Takeaways
- Today’s highest CD rate is 5.25% for a 6-month CD.
- CD rates from online banks are commonly twice as high as the national average rates.
- CD ladders let you leverage high rates without locking up all of your money long-term.
Highest CD Rates Today by Term
CD Rates Today
| TERM | HIGHEST APY | AVERAGE APY |
|---|---|---|
| 3 Months | 4.79% | 1.30% |
| 6 Months | 5.25% | 1.80% |
| 1-Year CD (12 M) | 5.02% | 1.87% |
| 2-Year CD (24 M) | 4.52% | 1.66% |
| 3-Year CD (36 M) | 4.65% | 1.57% |
| 5-Year CD (60 M) | 4.40% | 1.58% |
| Jumbo CD | 5.25% | 1.88% |
A CD is a kind of savings account with a fixed interest rate for a given term. You can access your principal and interest payments once the CD term expires; if you withdraw money before that time, you’ll incur an early withdrawal penalty. Traditionally, the longer a CD term, the higher the yield, but that dynamic hasn’t held in recent years. Make sure you select a CD that matches up with when you’ll need the money.
Average CD Rates
Today's 3-Month CD Rates
Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.30%, but the highest rate is 4.79%. Last week, three-month CDs earned an average of 1.30%.
Today's 6-Month CD Rates
A six-month CD offers a nice blend of high yields and short-term time commitment, and the highest yield you can find is 5.25%. The top rate was the same last week. The current average APY for a six-month CD is 1.80%, down from 1.83% last week at this time.
Today's 1-Year CD Rates
The highest interest rate currently available on a 12-month CD—one of the most popular CD terms—is 5.02%. If you land a 12-month CD with a rate in that vicinity, you’re getting a good deal. One week ago, the best rate was the same.
The average APY, or annual percentage yield, on a one-year CD is now 1.87%, down from 1.88% a week ago.
Today's 2-Year CD Rates
If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. The top rate last week at this time was a similar 4.52%.
Two-year CDs now have an average APY of 1.66%, a fall from 1.67% last week at this time.
Today's 3-Year CD Rates
Within the last week, the highest rate on a three-year CD has been 4.65%, so you’ll want to shop around for that rate or something near it.
Today's 5-Year CD Rates
On a five-year CD, the highest rate today is 4.40%, up from 4.30% one week ago. APYs are averaging 1.58%, down from 1.59% at this time last week.
If you opt for a five-year CD, make sure you’re aware of the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD before it matures.
Today’s Jumbo CD Rates
The best rate on today’s jumbo CDs is 5.25% for a 6-month term. The average APY for this category of CD is currently 1.88%, compared to 1.85% last week.
Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there’s no universally agreed-upon definition regarding what qualifies as a “jumbo” CD. Some banks and credit unions slap the label “jumbo” on CDs you can open with $50,000, $25,000 or even less.
Other Top CD Rates by Term
- Best 4-Year CD Rates
- Best 10-Year CD Rates
- Best 18-Month CD Rates
- Best Jumbo CD Rates
- Best IRA CD Rates
- Best No-Penalty CD Rates
Related: CD Interest Rates Forecast: How Good Will They Get?
Best CD Rates Offered by Banks in January 2025
When looking for the best CD rates, cast a wide net.
Study the offerings from traditional banks, credit unions and digital firms. You may be surprised that a credit union you’ve never heard of provides the highest yields.
For example, PenFed Credit Union’s CD rates currently range from 3.00% to 3.65% while U.S. Bank CD rates currently range from 0.05% to 0.25%.
Other top CD rates by banks include:
- PNC Bank CD Rates
- Citibank CD Rates
- Wells Fargo CD Rates
- Truist CD Rates
- Ally Bank CD Rates
- Capital One 360 CD Rates
How Do CDs Work?
CDs are a relatively simple savings tool: You open an account with a deposit (your principal), let your money sit for a predetermined period of months or years while you enjoy the magic of compounding interest.
Many CDs (as well as share certificates offered by credit unions) require a minimum deposit (typically less than $10,000 unless it’s a jumbo CD) to open your account. Some financial institutions allow you to fund an account with as little as a penny.
But banks and credit unions typically won’t allow you to add to your deposit once the term begins and the clock starts ticking. And they’re serious about not letting you crack open your CD or share certificate too soon. Early withdrawal penalties can be so tough they’ll eat into your principal, not just take back some of your interest.
Are CD Rates Worth It?
If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts. You will have to do without the money for as long as the term lasts; otherwise you’ll owe an early withdrawal penalty.
Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle?
The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going “poof” over the course of a year. Not a happy thought, is it?
CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don’t need immediately, while stocks provide solid long-term returns. You don’t want to risk cash you’re depending on.
The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit.
CD rates generally fluctuate the most following the Federal Reserve’s decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets.
Related: CD Interest Rates Forecast: How Good Will They Get?
Methodology
Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.
Frequently Asked Questions (FAQs)
How do you build a CD ladder?
You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD.
Follow this plan and you’ll have one better-yielding five-year CD maturing each year. If you’re ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD.
Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate.
Do CDs cost anything?
CDs usually come with zero fees, meaning your money won’t be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts.
You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won’t need access to your cash in the meantime.
