If you're looking for a safe way to grow your savings, now might be one of the best times to open a certificate of deposit (CD). Rates are still holding near their highs, with one top bank offering a 4.55% APY on a 6-month term and several others featuring strong options around 4.50% for terms between six and 10 months.

But these rates may not stick around for long. Many experts expect the Federal Reserve to start cutting interest rates later this year, which could quickly bring CD yields down. Opening a CD now lets you lock in one of today's higher returns before rates drop.

Here are some of the best CD rates available right now.

• United Fidelity Bank, 6 months: 4.55% APY
• United Fidelity Bank, 10 months: 4.50% APY
• OMB, 9 months: 4.50% APY
• Presidential Bank, 7 months: 4.50% APY
• SouthEast Bank, 6 months: 4.50% APY
• ableBanking, 6 months: 4.50% APY

Special pick: Now could be one of the last chances to lock in a yield this high before rates start to fall. LendingClub's 14-month CD currently offers 4.25% APY with just a $500 minimum deposit. Check out LendingClub's 14-month CD here.Data source: Issuing banks. Rates are accurate as of June 2, 2025.

Should you open a CD now?

If you're looking for a secure and steady way to grow your savings, now may be a great time to open a CD. With the Federal Reserve likely to cut interest rates later this year, some banks have already started lowering their best CD offers. Locking in one of today's still-competitive APYs allows you to lock in reliable returns before rates fall even more.

CDs are low-risk, offer guaranteed growth, and come with FDIC insurance up to $250,000 per person, per bank. They're a solid choice if you prefer stability and don't need immediate access to your money. However, if you're looking for potentially higher long-term returns and can handle market ups and downs, investing in stocks may be a better fit.

How a $10,000 CD could earn you almost $500

Your potential return on a CD depends on three factors: the APY, your deposit amount, and the term length.

For example, a $10,000 deposit into a 14-month CD with a 4.25% APY would earn roughly $498 in interest by the time it matures -- with virtually no risk of losing your principal.

Compare that to a traditional savings account, where rates are often much lower and can fluctuate over time. Locking in a top CD rate today, like LendingClub's 14-month CD, can help you maximize your returns before rates drop. See LendingClub's 14-month CD details here.

How to open a certificate of deposit

When you're ready, you can open a CD in just a few simple steps:

1. Compare CD rates and terms. Look at different banks to find the best APY and term length that fits your goals. Online banks often offer higher rates than traditional banks.
2. Decide how much to deposit. Choose an amount you won't need during the CD's term, since early withdrawals usually trigger penalties.
3. Open the account. You can usually open a CD online or at a bank branch. You'll need to provide basic information like your ID and bank account details.
4. Fund the CD. Transfer money from your checking or savings account into the CD. The term and interest rate are locked in once it's funded.
5. Mark the maturity date. Keep track of when your CD matures so you can decide whether to withdraw your money or roll it into a new CD at that time.

Remember, each CD allows only one deposit. Plan your amount wisely. When you're ready, click here to explore the best CD rates and open a high-yield CD today.

CDs vs. HYSAs: Earn a high APY without locking up your funds

Want solid returns without tying up your money? A high-yield savings account might be a better option than a CD. Here's why HYSAs offer more flexibility:

• No commitment required -- You can deposit or withdraw funds anytime with no early withdrawal penalties.
• Quick access -- Transfers between accounts are fast and easy when you need your money.
• Set it and forget it -- Just park your cash and let it grow. There's no need to worry about maturity dates like with CDs.
• Competitive rates -- HYSA rates can fluctuate, but many currently match or beat short-term CD offers.

Bottom line: you can earn a strong APY without giving up access to your savings.

One standout right now is SoFi Checking and Savings (Member FDIC). This top-rated account offers up to 3.80% annual percentage yield (APY) on savings with qualifying direct deposits. Even better: New customers can earn up to a $300 bonus with qualifying direct deposits! It's an easy way to boost your savings without locking up your cash. Click here to learn more.

• Sources

  • https://www.unitedfidelity.com/high-yield-certificates-of-deposit/
  • https://www.ombbank.com/personal-banking/personal-savings/certificates-of-deposit/9-month-cd-special
  • https://www.presidential.com/personal/banking/cds
  • https://www.southeastbank.com/personal-banking/bank-accounts/bank-cds/
  • https://www.ablebanking.com/cds

FAQs

• Can I withdraw money from a CD early?

  Yes, but it usually comes with a penalty. If you take money out before the CD matures, you'll likely lose some or all of the interest you've earned -- sometimes even a bit of your original deposit, depending on the bank's rules.

• What happens when a CD matures?

  When a CD reaches its maturity date, you'll have a short window -- usually seven to 10 days -- to withdraw your money or move it into a new CD. If you don't take action, the bank may automatically roll it into a new CD, often at a different rate or term.

• What's the biggest downside of a CD?

  The biggest downside of a certificate of deposit is the lack of liquidity. When you invest in a CD, your money is locked in for a fixed term, and withdrawing it early can result in loss of interest. This means you have less flexibility to access your funds if you need them before the CD matures.