CD Today, February 7, 2025 (up to 4.40% APY return)

If you are looking for a safe place to store your savings, a Certificate of Deposit (CD) may be a good choice. These accounts generally have higher interest rates than traditional checking and savings accounts. However, CD rates may vary widely. Learn more about CD prices today and where to find the best interest rates for high-yield CDs.

Today's CD prices vary greatly. However, overall, the CD rate began to decline due to the Fed's decision to lower its benchmark rate by three times late in 2024. Even so, some banks are still offering competitive CD rates.

Please see our selection for the best CD accounts available today >>

For those, the maximum interest rate reaches about 4% APY. This is especially true for shorter years or less.

Today, Nexbank offers the highest CD rate on its 1-year CD at APY of 4.40%. An open deposit of up to $25,000 is required.

Here are some of the best CD prices available today:

Comparing these rates to the national average as of January 2025 (the latest data available from FDIC):

The national average is much lower than today's highest CD rates. This highlights the importance of browsing the best CD prices before opening an account.

Online banking and new bike packages are financial institutions that operate only through the Internet. This means that their indirect costs are lower than those of traditional brick and mortar banks. As a result, they are able to pass these savings to customers in the form of higher deposit accounts (including CDs) and lower fees interest rates. If you are looking for the best CD prices available today, online banking is a great place to start.

However, online banks are not the only financial institutions that offer competitive CD rates. It is also worth checking with the credit union. As a nonprofit financial cooperative, credit unions return their profits to clients who are also members’ owners. While many credit unions have strict membership requirements limited to certain associations or people who work or live in certain fields, there are several credit unions that can join.

Whether you should put your money in your CD depends on your savings goals. CDs are considered safe and stable savings vehicles – they don’t lose money (in most cases) and are powered by federal insurance and allow you to lock in the best expenses today.

However, there are some disadvantages to consider. First, you must keep the money full-time or you will be subject to an early withdrawal penalty. If you want the flexibility to access your funds, a high yield savings account or money market account may be a better option.

Furthermore, although today’s CD rates are high by historical standards, they do not match the returns you can achieve by investing your money in the market. If you are saving for long-term goals like retirement, then CDs will not provide the growth needed to achieve savings goals within a reasonable time frame.

Read more: Short-term or long-term CD: Which one is best for you?