Certificate of deposit (CD) rates have been on a rollercoaster ride in recent years, hitting historic lows during the pandemic and then climbing sharply as the Federal Reserve hiked interest rates to combat inflation. If you're wondering how high CD rates could go in 2025, you're not alone. The answer depends on several economic factors, including Fed policy, inflation trends, and the broader financial market.

A look back: How we got here

CD rates tend to follow the Fed's moves. When the Fed raises interest rates, banks typically pass those increases along to savers by offering higher returns on CDs, high-yield savings accounts, and money market accounts. In 2022 and 2023, the Fed aggressively raised rates to curb inflation, leading to some of the best CD yields in decades.

By early 2024, top CDs were offering APYs of 5.00% to 6.00% -- numbers that seemed unthinkable just a few years prior. Currently, the best CDs offer over 4.00% APY. But with inflation cooling and the Fed signaling more potential rate cuts, the big question is: Will these high CD rates come back, or will rates continue to slide?

Lock in CD rates now, as experts think they'll fall in 2025. Check out our list of the best CD accounts now.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of February 11, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of February 11, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

What could happen to CD rates in 2025?

The trajectory of CD rates in 2025 will largely hinge on what the Fed does with interest rates. Here are three possible scenarios:

1. The Fed cuts rates, and CD yields drop

Some economists predict that the Fed will cut interest rates in 2025 and beyond as inflation eases. If that happens, CD rates will likely decline. The biggest drops would be in long-term CDs, as banks wouldn't need to offer sky-high rates to attract deposits.

2. The Fed holds steady, and CD rates remain where they are

If inflation remains somewhat sticky, the Fed could hold interest rates at current levels longer than expected. In this scenario, CD rates might hover around their current highs, with top banks offering APYs of 4.00% or more for the best deals.

3. The unexpected happens, and rates climb higher

While unlikely, there's always a chance that inflation picks back up, putting pressure on the Fed to raise rates. If that happens, CD rates could move up a little more, though probably not dramatically.

Should you consider a high-yield savings account instead?

CDs aren't the only way to earn a solid return on your cash. The best high-yield savings accounts offer APYs above 4.00% right now without losing access to your money for months or years like a CD.

If you were thinking a CD was right for you, check out the best high-yield savings accounts before making up your mind.

What should savers do now?

If you're trying to time the market for the best CD rates, here are a few strategies to consider:

• Lock in high rates now: If you find a CD offering an APY of 4.00% or more, locking in that rate for a year or longer might be a smart move, especially if you think rates will fall.
• Consider a CD ladder: This strategy involves spreading your money across multiple CDs with different maturity dates. That way, you're not stuck with a low rate if rates go up, but you still get some security if rates drop.
• Watch the Fed's moves: If the Fed signals a series of rate cuts, expect CD rates to follow. Stay informed so you can lock in rates before they drop.
• Opt for a high-yield savings account: If you want similar rates and no long-term commitment, an HYSA might be the perfect middle ground.

CD rates in 2025 will depend heavily on the Fed's decisions and the broader economy. While a decline in rates is likely, there's still uncertainty about how quickly and how much they'll fall. If you're a saver, now is a great time to take advantage of high yields before they potentially disappear.