Best CD Rates for January 2025: Up to 4.54%
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More than 100 financial institutions surveyed by our team of experts.
More than 50 data points considered for each bank and credit union to be eligible for our lists. For this CD list, more than five data points were considered per institution.
Certificates of deposit (CDs) can have the highest interest rates among bank accounts. The best CD rates today are mostly in the mid-4% for one-year terms and in the mid-3% for three- to five-year terms.
CDs provide a boost to savings, with certain limits: You agree to lock up a fixed sum for a set period, typically between three months to five years and in exchange, you get a guaranteed interest rate for that time period. High-yield CDs can earn you more money than high-yield savings accounts.
Our list features banks and credit unions that NerdWallet has reviewed and that have nationally available CDs. The selections have competitive APYs across popular short- and long-term CDs.
Annual percentage yields, meaning the rates of return, are current on this page as of Dec. 20, 2024.
- See a summary of best CD rates
Summary of best CD rates
Here are the highest CD rates at top online banks and credit unions for term lengths from six to 12 months:
Bread Savings: 4.50% APY for 6-month CD.
Popular Direct: 4.61% APY for 6-month CD.
Customers Bank: 4.55% APY for 6-month CD.
NASA Federal Credit Union: 4.54% APY for 9-month certificate.
TAB Bank: 4.52% APY for 1-year CD.
First Internet Bank: 4.42% APY for 1-year CD.
BMO Alto: 4.30% APY for 6-month CD.
Andrews Federal Credit Union: 4.25% APY for 1-year CD.
CFG Bank: 4.25% APY for 1-year CD.
Marcus by Goldman Sachs: 4.25% APY for 1-year CD.
Newtek Bank: 4.25% APY for 1-year CD.
E*TRADE: 4.25% APY for 1-year CD.
» See more rates: Skip down to our section on promotional CD rates
Nerdy Tip
The Fed lowered its benchmark rate multiple times in the second half of 2024. As a result, banks and credit unions have started lowering CD rates. With a CD, you can lock in high rates while they’re still around.
Best CD Rates for January 2025: Up to 4.54%
| Bank/institution | NerdWallet rating | Minimum deposit | APY | Learn more |
|---|---|---|---|---|
4.4/5 | $1,500 Member FDIC | 1-year APY 4.10% 3-year APY 3.90% 5-year APY 3.85% | ||
5.0/5 | $0 Deposits are FDIC Insured | 1-year APY 4.20% 3-year APY 3.80% 5-year APY 3.90% | ||
4.5/5 | $10,000 Member FDIC | 1-year APY 4.50% 3-year APY 4.25% 5-year APY 4.25% | ||
5.0/5 | $1,000 Federally insured by NCUA | 1-year APY 4.30% 3-year APY 4.00% 5-year APY 3.85% | ||
5.0/5 | $1,000 Member FDIC | 1-year APY 4.42% 3-year APY 3.77% 5-year APY 3.67% | ||
5.0/5 | $1,000 Federally insured by NCUA | 1-year APY 4.25% 3-year APY 3.80% 5-year APY 3.60% | ||
4.6/5 | $0 Member FDIC | 1-year APY 4.25% 3-year APY 3.60% 5-year APY 3.50% | ||
4.4/5 | $2,500 Member FDIC | 1-year APY 4.25% 3-year APY 3.90% 5-year APY 2.00% | ||
3.9/5 | $500 | 3-year APY 4.10% 5-year APY 3.70% | ||
5.0/5 | $500 | 1-year APY 4.25% 3-year APY 3.85% 5-year APY 3.75% | ||
5.0/5 | $500 Member FDIC | 1-year APY 4.25% 3-year APY 3.65% 5-year APY 3.65% | Learn moreLearn more at Goldman Sachs Bank USA, Member FDIC | |
5.0/5 | $1,000 Member FDIC | 1-year APY 4.52% 3-year APY 4.03% 5-year APY 3.87% |
Our pick for
CD Rates
Minimum deposit
$1,500
Member FDIC
APY
1-year APY 4.10%
3-year APY 3.90%
5-year APY 3.85%
Minimum deposit
$0
Deposits are FDIC Insured
APY
1-year APY 4.20%
3-year APY 3.80%
5-year APY 3.90%
Minimum deposit
$10,000
Member FDIC
APY
1-year APY 4.50%
3-year APY 4.25%
5-year APY 4.25%
Minimum deposit
$1,000
Federally insured by NCUA
APY
1-year APY 4.30%
3-year APY 4.00%
5-year APY 3.85%
Minimum deposit
$1,000
Member FDIC
APY
1-year APY 4.42%
3-year APY 3.77%
5-year APY 3.67%
Minimum deposit
$1,000
Federally insured by NCUA
APY
1-year APY 4.25%
3-year APY 3.80%
5-year APY 3.60%
Minimum deposit
$0
Member FDIC
APY
1-year APY 4.25%
3-year APY 3.60%
5-year APY 3.50%
Minimum deposit
$2,500
Member FDIC
APY
1-year APY 4.25%
3-year APY 3.90%
5-year APY 2.00%
Minimum deposit
$500
APY
3-year APY 4.10%
5-year APY 3.70%
Minimum deposit
$500
APY
1-year APY 4.25%
3-year APY 3.85%
5-year APY 3.75%
Minimum deposit
$500
Member FDIC
APY
1-year APY 4.25%
3-year APY 3.65%
5-year APY 3.65%
Minimum deposit
$1,000
Member FDIC
APY
1-year APY 4.52%
3-year APY 4.03%
5-year APY 3.87%
💬 Our Nerds say:
"When comparing CD rates, aim for the highest APY for the CD term length you need. The best rates right now tend to be on shorter terms such as one-year CDs or less, but a longer-term CD with a lower rate can outearn a shorter-term CD.
"Or, if you’d want the flexibility to redeem a CD early at no cost, a few banks offer no-penalty CDs.”
— Spencer Tierney,
NerdWallet senior writer covering consumer banking
» See more rates: Skip down to our section on promotional CD rates
2024 news about the best CD rates
The best CD rates above 5% APY have dried up, and promotional CD rates have dropped below that threshold too. The highest CD rate we feature on this page is 4.54% APY for a 9-month promo CD at NASA Federal Credit Union.
Competitive CD rates started to dip gradually in early 2024 with more accelerated drops in late September, according to NerdWallet analysis. Banks and credit unions previously raised CD rates in the past two years to follow the direction of the Federal Reserve’s benchmark rate, which saw almost a dozen increases. However, in multiple meetings in 2024, the Fed cut its rate, which has propelled high-yield CD rates downward. Rates on new CDs will likely continue falling.
The right time for CDs ultimately depends on your savings goals, but if you’re in the market for them, consider locking in high CD rates while they last. Learn more about where rates are headed in our CD rate forecast.
“Best” CD rates elsewhere – and why they’re not our picks
NerdWallet’s CD picks focus on high rates and accessibility. Accessibility means you don’t have to go through hoops to earn a certain rate, such as with restrictive membership at a credit union or by satisfying a difficult account requirement. Watch out, for example, for low maximum deposit requirements.
Here are a couple of CD rates we’ve seen featured on other websites and why they’re not on our list:
California Coast Credit Union: 9.50% APY for 5-month certificate.
Our take: Not worthwhile due to low maximum deposit and tough requirements. This credit union’s super high rate is a limited time offer with a maximum balance of $3,000. The total interest you can earn is about $116. In contrast, a one-year CD with a 4% APY and $10,000 balance earns you $400. In addition, there are requirements to earn the 9.50% rate, such as opening another bank account and either a monthly transaction or having a $5,000 minimum in the secondary account.
Nuvision Credit Union: 5.50% APY for 8-month certificate.
Our take: Not worthwhile due to low maximum deposit. This credit union’s high rate has a maximum balance of $5,000. The most interest you can earn is about $182. You can earn more interest with high-yield CDs elsewhere. You also need to open a savings account with the credit union, which is fairly standard when joining a credit union.
CD definition: What is a CD?
A certificate of deposit is a bank account that requires you to lock funds away for a fixed period of months or years in exchange for a fixed interest rate that can be higher than other bank accounts. These accounts are often referred to as CDs.
Historically, CDs took the form of paper certificates, but nowadays, CDs are like other financial accounts that you can manage online. See more about what CDs are.
» Curious about other savings options? Check out NerdWallet’s best high-yield online savings accounts
How to choose a CD
Consider each part of a CD to help break down your decision:
CD term: Most terms at a bank or credit union range from three months to five years. Learn how to choose your CD term.
CD type: High-yield CDs work like standard CDs but have the best rates and are often at online banks. Some CDs have an unusual feature, such as a no-penalty CD that doesn’t charge for early withdrawals or a bump-up CD that allows for a rate increase during a term. See types of CDs.
CD rate: Once you’ve narrowed down the term and type of CD, you can compare banks and credit unions to find a competitive rate. You may decide to go with a bank you already have accounts at or choose a new institution, depending on whether convenience matters to you, but aiming for a high rate is ideal. See current CD rates.
CD deposit: The amount you put into a CD depends on your savings goals, but a CD’s opening minimum requirement isn’t a good guide. And, if you’re worried about a bank failing, keep less than the FDIC insurance limit of $250,000 in your accounts to keep your money protected. Learn how to choose your CD deposit.
CD penalty: The early withdrawal penalty only kicks in if you redeem a CD before the term ends. The penalty is usually several months to even a years’ worth of interest, depending on the CD term length. Ideally, you only need to factor in the penalty if there’s a chance you’ll need funds early. See more about CD early withdrawal penalties.
Watch our explainer to further help you decide on CDs:
Choosing multiple CDs
If the pressure of choosing one CD is too much, you might consider a strategy to balance cash access with high yields. Opening multiple CDs with different terms in a CD ladder lets you redeem CDs over time while taking advantage of competitive short- and long-term CD rates.
When to consider CDs
Think about CDs as part of the cash and cash equivalents category of your overall portfolio, which is your overall collection of investments across different types of assets. For many people, CDs can work best in a few situations:
Locking up savings for a big purchase within the next five years, including a down payment on a car or house.
Stashing away a sudden windfall to avoid spending it now.
Earning some returns without market risk, especially closer to or during retirement.
Learn more about when CDs can be worth it.
How much does a $10,000 CD make in a year?
A $10,000 CD with a 5% APY would make $500 in a year. But if you’re eyeing a 6-month CD with that rate and deposit, you’d earn a little less than half that.
The three main factors that impact CD earnings are the rate, the CD term and the CD deposit. Unlike regular savings accounts, you don’t generally have the ability to add money to a CD after the initial deposit. Here’s a look at some scenarios for how much $10,000 in a CD can earn in a year, compared to six months. (Or use our CD calculator.)
Starting balance | APY | Interest earned in 1 year | Interest earned in 6 months (rounded) |
|---|---|---|---|
$10,000. | 3.00%. | $300. | $149. |
$10,000. | 4.00%. | $400. | $198. |
$10,000. | 5.00%. | $500. | $247. |
$10,000. | 5.30%. | $530. | $262. |
Nerdy Tip
A lower rate can outearn a higher rate. A 1-year CD with a 4.50% APY will get you more interest than with a 6-month, 5.00% APY CD. If you had $10,000 to deposit, you'd earn $246.95 with the 6-month CD and $450 with the lower-rate 1-year CD. When comparing CD rates, use a CD calculator to see how much you can earn with different term lengths.
Other CDs: Promotional and No-penalty CDs
Traditionally, one-year, three-year and five-year CDs tend to be the most popular options to consider, but there are other CDs that occasionally provide higher yields or more flexibility.
Promotional CDs refer to CDs with nontraditional term lengths, or less often, CDs with expiration dates on the rates being offered. While these CD rates may be higher than CDs with traditional terms, they may automatically renew into lower-rate CDs by default.
No-penalty CDs are CDs that allow you to withdraw, at no cost, the full amount of a CD anytime after the first few days of opening. Generally, though, no-penalty CDs are uncommon and have lower rates compared to high-yield CDs for similar terms.
Current promotional CD rates
The following promotional CD rates stand out based on NerdWallet’s data analysis in mid-December 2024. Expiration dates for a promo are shown when available.
In general, promotional rates tend to be for irregular CD terms and featured on banking websites as a “promotional rate” or “CD special.” (For more details, see how promotional CD rates work.)
Name (click to see our review) | CD rate (or certificate rate) |
|---|---|
NBKC Bank: 7-month CD | 4.50% APY. |
NASA Federal Credit Union: 9-month Certificate | 4.54% APY. |
CIBC U.S.: 9-month CD | 4.31% APY. |
Bask Bank: 9-month CD | 4.30% APY. |
Bethpage Federal Credit Union: 10-month Certificate | 4.00% APY. |
LendingClub Bank: 10-month CD | 4.25% APY. |
NBKC Bank: 11-month CD | 4.25% APY. |
Synchrony Bank: 13-month CD | 4.25% APY. |
CIBC U.S.: 13-month CD | 4.11% APY. |
NASA Federal Credit Union: 15-month Certificate | 4.34% APY. |
Bank5 Connect: 15-month CD | 4.25% APY. |
Consumers Credit Union: 17-month Certificate | 4.15% APY. |
NASA Federal Credit Union: 49-month Certificate | 4.09% APY. |
Best no-penalty CD rates
A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you also want the flexibility of needing the money sooner than you expect.
Right now, high-yield savings accounts have comparable rates to CDs (and the flexibility of withdrawal at will) but the main advantage of a no-penalty CDs over one of these accounts is the fixed rate, especially as rates drop.
These four banks offer high no-penalty CD rates:
Ally Bank® (Member FDIC): 3.75% APY, 11 months, no minimum to open.
CIT Bank: 3.50% APY, 11 months, $1,000 minimum to open.
Marcus by Goldman Sachs: 4.00% APY, 13 months, $500 minimum to open.
Climate First Bank: 2.91% APY, 12 months, $500 minimum to open.
» See more details on our list of the best no-penalty CD rates
Other CDs: IRA and jumbo CDs
Some types of CDs have more restrictions, such as funds earmarked only for retirement or high minimum deposits, and aren’t the standard CDs at banks or nationally available credit unions. However, they may work for certain savers:
IRA CDs are used to save a portion of retirement savings, largely for risk-averse savers and folks near or in retirement. You get the tax benefits of an individual retirement account plus the fixed rate of a CD. See the best IRA CD rates.
Jumbo CDs refer to CDs with a high minimum deposit requirement, traditionally $100,000. They’re not available everywhere and don’t often have the highest rates you can find. See the best jumbo CD rates.
Note: While not a special type of CD, CDs at credit unions – or share certificates – aren’t always available nationwide. Credit unions can have membership requirements limited to residents of a certain state or organization, such as the military. See the best credit union CD rates.
Alternatives to CDs
If you’re looking for similarly safe savings or investment vehicles to CDs but want more flexibility or other features, consider the following:
High-yield savings accounts have comparable returns to CDs and let you add or withdraw money typically whenever you want. Compare CDs and high-yield savings accounts.
Money market accounts, like regular savings accounts, let you add and withdraw money over time, but MMAs tend to have higher minimum deposit requirements to open the account or avoid a monthly fee. Compare CDs and money market accounts.
Bonds are loans to companies or the government that pay investors a fixed rate of interest in return. Compare CDs and bonds.
» Want more options? See the best investments in 2024
Last updated on December 20, 2024
Methodology
On a monthly basis, we compare rates at over 40 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyze our full list, excluding banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
We took a close look at over 100 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings Bank, CFG Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Delta Community Credit Union, Discover® Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Forbright Bank, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road Bank, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, My Banking Direct, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, Newtek Bank, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Poppy Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
NerdWallet's Best CD Rates for January 2025: Up to 4.54%
- Bread Savings™️ CD: Best for CD Rates
- BMO Alto Certificate of Deposit: Best for CD Rates
- Popular Direct CD: Best for CD Rates
- NASA Federal Credit Union Share Certificate: Best for CD Rates
- First Internet Bank CD: Best for CD Rates
- Andrews Federal Credit Union Fixed Rate Share Certificates: Best for CD Rates
- E*TRADE CD: Best for CD Rates
- Newtek Bank CD: Best for CD Rates
- Customers Bank CD: Best for CD Rates
- CFG Bank CD: Best for CD Rates
- Marcus by Goldman Sachs High-Yield CD: Best for CD Rates
- TAB Bank CD: Best for CD Rates
Frequently asked questions
- Which banks have the best CD rates?
Online banks such as BMO Alto and credit unions such as Alliant Credit Union tend to offer some of the most competitive rates, especially compared to national averages.
- Can you get 6% on a CD?
It’s unlikely, especially since no nationally available bank or credit union NerdWallet reviews has a 6% APY. In general, CD rates are headed downwards, so any credit unions with restrictive membership requirements that have short-term CD specials of around 6% may not offer them much longer.
- Are CDs safe?
Yes. Most banks and credit unions insure your money in a CD up to $250,000 per person per account type, such as single-owned and joint accounts. See more details about how CDs are FDIC insured. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty.
- Are CDs worth it?
Certificates of deposit require more of a commitment than a regular savings account since you're locking away some savings for a future date. This feature can be helpful for some goals but not for others, such as emergency savings, since you’ll want that money to be easy to access when you need it. While CDs have the perks of fixed rates and higher yields traditionally than other bank accounts, withdrawing from CDs early usually results in a penalty. Take a closer look at when CDs are worth it.
- Do you pay taxes on CD interest?
Yes. Interest earned in CDs is taxable as interest income. Your bank or credit union will usually give you a Form 1099-INT that states the interest each year, unless the amount is under $10. The IRS notes that you generally include interest from CDs when you receive it, so a CD with a term longer than a year wouldn’t have its interest taxed until the term ends.
- What is APY on a CD?
A CD rate is quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily. A CD’s term plays a role too: the longer the term, the higher the rate generally. APYs are not the same thing as interest rates since APYs have compounding factored in, making APYs more useful for comparing CDs’ potential returns. Learn more about APY vs. interest rate.
- Do CDs have fees?
CDs don’t have monthly fees like checking or savings accounts might have, but they generally have a penalty if you withdraw before the CD term expires. This early withdrawal penalty tends to be several months’ to years' worth of interest, so it’s usually best to wait to access funds from a CD once it expires. The exception is no-penalty CDs.
- Can you lose money on a CD?
It’s highly unlikely, but possible. Here are three scenarios:
If you withdraw early, the penalty can be steep enough at some banks to dig into the initial amount you put into a CD.
If you put more money into a CD than FDIC insurance covers – such as $250,000 for a single account owner at a bank – and the bank fails, you could possibly lose the amount not covered by the FDIC.
If inflation stays higher than your CD’s rate, the CD’s returns might not be enough to overcome the way inflation erodes purchasing power over time.
- Are 10-year CD rates worth it?
The general rule of thumb for CDs is the longer the term, the higher the rate. However, this isn't always true. The best 10-year CD rates aren't necessarily higher than the best five-year CD rates, and locking up your money for a decade might not be in your best interest. Consider current CD rates as well as your savings goals — investing your money in mutual funds might be more worthwhile for a longer term.
» MORE: See the best short-term investments for 5 years or less