Right now, CD rates are on fire, especially for six to 12-month terms. CDs of this length are earning rates of 4.50% to 4.65%.

With possible Fed cuts coming soon, it's smart to lock in a CD today. Don't delay if you're looking for the best deals -- secure your rate now before they dip.

We've rounded up the top CD rates today. Give them a look to see if any are a good fit for you.

Why we chose these CDs

• Extremely competitive rates. Some CDs have slightly higher rates, but most come with a catch.
• Low minimum deposits. Some CDs require a minimum deposit of $5,000 or more, while the CDs above let you deposit as little as $500.
• Available nationwide. Some high-yield CDs are offered by regional credit unions that not everyone can easily join. The CDs above come from banks that anyone in the U.S. can join without jumping through hoops.
• Online convenience. All the CDs on our list can be opened and managed quickly and conveniently on the bank issuer's website, from the comfort of home.

Should you open a certificate of deposit?

Despite a decline since mid-2024, CD rates remain elevated now. Although the Federal Reserve has currently opted to hold the federal funds rate steady, experts widely predict that rate reductions are probable later in 2025.

Now could be a great time to lock in a CD if you want safe, guaranteed returns on your cash and you want to protect your savings from the possibility of near-term interest rate cuts.

The best CDs come with FDIC insurance, ensuring that deposits of up to $250,000 per individual, per institution, are safe in the event of bank failure. While investing in CDs carries almost no risk, alternative options -- such as the stock market -- may offer the potential for greater returns.

How to open a CD

When you're ready, you can open a CD in just a few simple steps:

1. Shop around and compares rates to find the best APY for the term you want.
2. Read the fine print and make sure you can meet any minimum deposit requirements.
3. Apply for your new CD on the bank's website or mobile app, or over the phone. You'll likely be approved and ready to invest in minutes.
4. Link an existing bank account to transfer funds to a new CD.

Remember, each CD allows only one deposit. Plan your amount wisely. When you're ready, click here to explore the best CD rates and open a high-yield CD today.

Once you've opened your CD, keep an eye on its maturity date. When a CD matures, the bank will typically do one of two things unless you say otherwise:

1. Pay out your initial deposit plus your earnings as cash
2. Reinvest your funds in a new CD with the same term (but potentially a different APY)

Most banks give you a grace period of seven to 10 days after the CD's maturity date to make a decision.

Earn up to 4.40% APY without locking up your money

If you want to earn a high APY with more flexibility and less commitment, a high-yield savings account will allow you to deposit and withdraw money whenever you want and transfer money to other accounts quickly and easily. You can leave your money in the account as long as you want, with no time requirement.

Unlike CDs, savings accounts have variable rates, meaning they can change any time at the issuer's discretion. But right now, high-yield savings account rates are nearly on par with the best CD rates, making either one a great choice, depending on your savings goals.

• Sources

  • https://www.ombbank.com/personal-banking/personal-savings/certificates-of-deposit/7-month-high-yield-special
  • https://www.unitedfidelity.com/high-yield-certificates-of-deposit/
  • https://t.bank/current-rates/
  • https://www.brilliant.bank/cds/

FAQs

• Should I open a CD right now?

  If you want steady growth and peace of mind for your money, now is a great time to open a CD. Rates are high, offering generous returns. With the possibility of rate cuts on the horizon, now is a good time to lock in a competitive rate while they're still available.

• Can CD rates go even higher in 2025?

  Many think the Federal Reserve will cut rates this year, which could result in lower CD rates. However, if inflation climbs and the Fed raises rates instead, CD rates could increase. Rate movements aren't certain, and timing is unclear.

• What is a good CD rate in April 2025?

  Today, CD rates can be found up to 4.65%. The highest CD rates are on short-term CDs, which includes CDs with terms of 12 months or less. Shop around and compare rates to find the most competitive rate for the term you want.