Key takeaways
- Today’s best CDs offer up to 4.65% APY.
- CDs offer guaranteed returns, low risk and protection from bank failure.
- A CD can be a great fit for money you’ve earmarked for a specific savings goal.
A savings account isn’t the only place you can stash your cash. Don’t overlook certificates of deposit.
“In today’s economy, where inflation and interest rates are fluctuating, CDs offer a safe way to park money and earn a guaranteed return,” said Taylor Kovar, certified financial planner and CEO of 11 Financial. Today’s best CDs offer annual percentage yields (APYs) up to 4.65% – more than three times the national average.
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It all depends on what you’re looking for and your savings timeline. Though CDs are low-risk like savings accounts, they aren’t as liquid as other investments. “If you’re not looking to take big investment risks and you’re OK locking up your money for a set period, a CD is a solid option,” Kovar said.
Is a CD right for you, and how much interest could you earn by opening one? Read on to find out.
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated earnings on $1,000 deposit | Estimated earnings on $5,000 deposit | Estimated earnings on $10,000 deposit |
|---|---|---|---|---|---|
| 6 months | 4.65% | CommunityWide Federal Credit Union | $22.99 | $114.93 | $229.85 |
| 1 year | 4.45% | CommunityWide Federal Credit Union | $44.50 | $222.50 | $445.00 |
| 3 years | 4.15% | America First Credit Union | $129.74 | $648.69 | $1,297.38 |
| 5 years | 4.25% | America First Credit Union | $231.35 | $1,156.73 | $2,313.47 |
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.
What sets CDs apart
CDs offer a number of benefits, including:
- Competitive rates: Traditional savings accounts offer minimal APYs, sometimes as low as 0.01%. Top CDs currently have APYs of 4.50% or more. That can make a difference in your interest earnings.
- 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.
- 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 your money at any time.
- Barrier to access: You can withdraw money in a savings account at any time, free of charge (as long as you mind any monthly withdrawal limits). Many CDs, however, charge an early withdrawal penalty if you take your money out before the term is up. This can help you resist the urge to dip into your funds before you need them.
Is a CD right for you?
CDs have plenty of perks, but they’re not always the best option. “It really depends on your goals,” Kovar said.
To determine if a CD is the right choice for your money, ask yourself the following questions:
- When will you need your funds? CDs are great for savings goals with a set timeline, and they come in a range of terms, from as short as three months to several years. If you know you want to buy a home down the road, for example, a five-year CD can be a great way to grow your down payment. However, a savings account is a better fit if you need instant access to your money, such as with an emergency fund.
- How much do you have 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.
- Do you want to add money over time? Most CDs (though not all) only allow a one-time deposit. If you’d like to regularly add money to your savings over time, consider a high-yield savings account.
- Do you need some discipline? If you’re worried you’ll be tempted to tap into your savings before you need it, a CD imposes an early withdrawal penalty, which can help give you pause.
💰You can earn up to 5% APY on today’s best high-yield savings accounts. Check out the 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, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APYs as of Feb. 26, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.