CD rates remain high, especially for CDs with terms of six month to a year. But today's rates may not last much longer, as the Federal Reserve has signaled that it will cut the federal funds rate later in 2025.

The Fed is holding steady as we brace for the impact of the Trump administration's tariff hikes. However, rate cuts may come as soon as mid-June, so now could be a great time to lock in today's rates with a CD.

Here are some of the top CD rates you can find now.

Why we chose these CDs

• Extremely competitive rates. Some CDs have slightly higher rates than those on our list, but most come with a catch.
• Low minimum deposits. Some CDs require a minimum deposit of $5,000 or more, while the CDs above let you deposit as little as $500.
• Available nationwide. Some high-yield CDs are offered by regional credit unions that not everyone can easily join. The CDs above come from banks that anyone in the U.S. can join without jumping through hoops.
• Online convenience. Some banks require you to visit a branch to open a CD. The CDs on our list can each be opened straight from the issuer's website.

If you're looking for a solid CD from a trusted digital bank, Discover® Bank CDs are worth a look. Discover offers a much wider range of CD terms than most issuers -- from 3 months all the way up to 10 years! These CDs are available nationwide and are easy to open online -- a great pick for savers who value flexibility and a $0 minimum deposit requirement. Explore Discover CD rates here.

The Best CD Rates From Our Partners Today

Should you open a CD now?

CD rates began a slight decline towards mid-2024 as the Fed reduced rates for the first time in four years. Two subsequent rate reductions followed before the year ended. Even with this drop, CDs remain a strong option. The Fed is holding rates steady now, but further cuts are likely in the second half of this year.

Here's why CDs are a good choice now:

• They provide stable and safe returns.
• They're protected by FDIC insurance up to $250,000 per depositor, per bank.
• They safeguard against future rate drops during the CD term.

While CDs offer low-risk and steady returns, those with a longer investment timeline or more risk tolerance may want to consider investing in the stock market for more growth.

How to open a certificate of deposit

When you're ready to open a CD, just follow these easy steps:

1. Pick a bank: Look up banks to see which one offers the best CD rates and terms.
2. Go online: Visit the bank’s site and find the Certificate of Deposit section under personal banking.
3. Choose your CD: Select the CD that fits you and start the online application for a new account.
4. Fill in details: Enter your personal info and pick a way to fund your CD from your bank account.
5. Check terms and apply: Read the CD terms, especially about any early withdrawal fees, then submit your application.
6. Note maturity date: Mark on your calendar when your CD matures so you know when you need to either withdraw or reinvest your money.

That's all it takes!

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.

Earn up to 4.40% APY and access your money when you need it

If you want to earn a high APY with more flexibility and less commitment, then look into a high-yield savings account.

• You can deposit and withdraw money whenever you want.
• You can quickly transfer money to other accounts.
• You can simply deposit cash and leave it, while CDs require some work and decision-making when they mature.

Savings account rates are variable and can change at any time. However, high-yield savings accounts currently have APYs that rival the best CDs.

If you want to earn a competitive APY without locking up your money in a CD, the Barclays Tiered Savings account is worth a look. It consistently offers one of the highest yields available at 4.10% with no account minimum required to earn. Open a Barclays Tiered Savings account here.

• Sources

  • https://www.ombbank.com/personal-banking/personal-savings/certificates-of-deposit/7-month-high-yield-special
  • https://www.unitedfidelity.com/high-yield-certificates-of-deposit/
  • https://t.bank/current-rates/
  • https://www.nbkc.com/personal/certificate-of-deposits

FAQs

• Should I open a CD right now?

  If you want steady growth and peace of mind for your money, now is a great time to open a CD. Rates are high, offering generous returns. With the possibility of rate cuts on the horizon, now is a good time to lock in a competitive rate while they're still available.

• Can CD rates go even higher in 2025?

  Experts currently expect the Federal Reserve to cut rates later this year, which could result in lower CD rates. However, if inflation climbs and the Fed raises rates instead, CD rates could increase. Rate movements aren't certain, and timing is unclear.

• 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 penalties or loss of interest. This means you have less flexibility to access your funds if you need them before the CD matures.