This month, the Federal Reserve lowered the federal funds rate for the third time in 2024. That means deposit account rates are now on the decline as well.The good news: You can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. Read on for a snapshot of CD rates today and where to find the best offers.CD rates have remained high by historical standards, especially for shorter terms. For example, it’s possible to find rates of 4.00% APY or higher for terms of about one year and under. Although interest rates for longer-term CDs aren’t quite as high, the best available rates still hover near 3%-4% APY for terms of three years or more.Today, the highest CD rate 4.27% APY, offered by NexBank on its 1-year CD. However, there is a large minimum opening deposit of $25,000 required.The next-highest rate can be found at two banks: Synchrony (13-month term) and Marcus by Goldman Sachs (1-year). Both banks are offering 4.25% APY.Here is a look at some of the best CD rates available today from our verified partners:See our picks for the best CD accounts available today>>CD rates are tied to the federal funds rate; when the Fed increases its target rate, deposit account rates usually follow suit, and vice versa.The Fed held interest rates steady for most of 2024, with a target rate of 5.25% – 5.50%. However, as inflation cooled and economic growth improved, it finally slashed the federal funds rate by 50 basis points in September, and another 25 basis points in November and December. Experts believe there will be additional rate cuts in 2025.As a result, CD rates have begun falling. That means now might be the last chance for savers to lock in today’s higher CD rates.Read more: APY vs. interest rate: What’s the difference?Whether or not you should put your money in a CD depends on several factors. Earning a competitive interest rate is important, but it’s not the only consideration to keep in mind. Here’s a closer look at some of these key factors to think about: Interest rates: CDs make for a more attractive investment option when interest rates are high or trending downward since they lock in the current rate for the entire term. Considering the recent trends in interest rates, it could be a good time to put your money in a CD and secure a guaranteed rate of return. Financial goals: CDs are a safe investment choice if you’re looking to preserve capital and earn a steady return. They are insured by the FDIC up to the federal limit and can’t lose money in most cases, making them a low-risk option. That said, if you’re saving for a long-term goal like retirement, a CD may not be the best choice since market investments tend to provide higher returns, on average. Liquidity needs: CDs require you to lock in your money for a set period, known as the term. If you think you’ll need to access your money before the term ends, you may want to avoid CDs, as they come with early withdrawal penaltie
Mer. Gen 8th, 2025
