Lock in High Yields with Today’s Best CDs: Earn Up to 4.65% APY

In today’s uncertain economic landscape, one thing is clear: certificates of deposit (CDs) offer a stable way to grow your savings with fixed rates. While the Federal Reserve (Fed) may cut interest rates later this year, locking in a high APY now can protect your earnings from future rate reductions. The best CDs currently offer up to 4.65% annual percentage yield (APY), more than double the national average for certain terms. Whether you’re saving for a short-term goal or a long-term investment, CDs provide a secure and predictable return on your money. For example, a $5,000 deposit in a 6-month CD with a 4.65% APY could earn you $114.93 in interest, while a 5-year CD could yield $1,156.73.

Today’s Best CD Rates: Top APYs for Every Term

The current CD market offers competitive rates across various terms, catering to different financial goals and timelines. Below are the top APYs available today:

• 6 months: 4.65% APY at CommunityWide Federal Credit Union, earning $114.93 on a $5,000 deposit.
• 1 year: 4.45% APY at CommunityWide Federal Credit Union, earning $222.50 on a $5,000 deposit.
• 3 years: 4.15% APY at America First Credit Union, earning $648.69 on a $5,000 deposit.
• 5 years: 4.25% APY at America First Credit Union, earning $1,156.73 on a $5,000 deposit.

Experts advise comparing rates from multiple banks and credit unions to find the best APY for your needs. Online banks often offer higher rates due to lower overhead costs.

How CD Rates are Changing: What You Need to Know

CD rates are influenced by the federal funds rate, which the Fed adjusts based on the economy’s performance. After cutting rates in 2024, the Fed paused rate changes in January 2025 due to signs of rising inflation. While the Fed doesn’t directly set CD rates, banks typically adjust their APYs in response to federal rate changes.

Over the past week, CD rates have shown slight fluctuations. For example, the average APY for a 6-month CD dropped slightly to 4.09%, while 1-year and 3-year CDs saw minor increases. Despite these changes, experts predict that the Fed may lower rates later this year, making it a good time to lock in a high APY now.

Choosing the Best CD for Your Needs: Key Factors to Consider

While a high APY is an important consideration, it’s not the only factor to evaluate when selecting a CD. Here are some key things to keep in mind:

1. Term Length: Choose a CD term that aligns with when you’ll need your money. Early withdrawal penalties can reduce your earnings if you access your funds before the CD matures. No-penalty CDs are an option but may offer lower APYs.
2. Minimum Deposit Requirements: Some CDs require a minimum deposit to open, typically ranging from $500 to $1,000. Make sure you have enough savings to meet this requirement.
3. Fees: Check for maintenance or other fees that could reduce your earnings. Online banks often have lower fees due to reduced overhead costs.
4. Safety and Security: Ensure the bank or credit union is FDIC- or NCUA-insured to protect your deposits in case of bank failure.
5. Customer Ratings: Research the bank’s reputation by reading reviews on platforms like Trustpilot to ensure you’re working with a responsive and reliable institution.

How CD Rates Are Determined: Understanding the Process

CD rates are influenced by the federal funds rate, which the Fed adjusts to manage inflation and economic growth. When the Fed raises rates to combat inflation, banks often increase their CD APYs to attract deposits. Conversely, when rates are cut to stimulate spending, CD rates may decline.

Currently, experts anticipate that the Fed may lower rates later this year, making it a smart move to lock in a high APY now. By doing so, you can secure a fixed rate for the term of your CD, shielding your savings from potential future rate reductions.

Conclusion: Why CDs are a Smart Investment Choice

In an uncertain economic environment, CDs stand out as a stable and rewarding savings option. With APYs as high as 4.65%, the best CDs allow you to maximize your returns while protecting your earnings from future rate cuts. By carefully selecting a CD that fits your financial timeline, budget, and preferences, you can enjoy a secure and predictable way to grow your money. Whether you’re saving for a short-term goal or building long-term wealth, CDs are a dependable choice in today’s fast-changing financial landscape.

CNET regularly tracks and updates CD rates from over 50 banks, credit unions, and financial institutions to help you make informed decisions. If you’re ready to take advantage of today’s high APYs, start by comparing rates and terms to find the best CD for your financial goals.