You can snag a short-term CD today with an annual percentage yield (APY) as high as 4.65%. Short-term CDs are those with terms of 12 months or less.

When the Federal Reserve made the decision a week ago today to hold rates steady, they all but guaranteed that CD rates will remain competitive, at least for the time being. As such, now could be a great time to lock in a high CD rate while they're still available.

Below, we've gathered a selection of the highest CD rates we could find.

Why these CDs made our list

The CDs we highlight above stand out to us for a handful of reasons. Perhaps most importantly, they offer extremely competitive rates. While there are CDs with marginally higher rates to be found, those often come with certain conditions that could limit accessibility or benefits.

Additionally, these CDs feature attainable minimum deposit requirements. Unlike other options that demand a $5,000 or more initial deposit, these CDs allow you to start with as little as $500. They are also accessible nationwide, unlike certain high-yield CDs offered by regional credit unions with membership restrictions. The CDs we selected are from banks that welcome membership from anyone in the U.S. without prerequisites pertaining to where you work or live.

The Best CD Rates From Our Partners Today

Want to find the best CD for your timeline and goals? Explore top rates by term:

• Best CD Rates -- Our expert picks for the top accounts available today
• Best 6-Month CD Rates -- Short-term savings with fast access
• Best 12-Month CD Rates -- Solid returns with just a 1-year commitment
• Best 5-Year CD Rates -- Maximize earnings over the long haul

Is it a good time to open a CD?

Despite a decline since mid-2024, CD rates remain elevated. Although the Federal Reserve has currently opted to maintain the current federal funds rate, 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
• You want to protect your savings from near-term interest rate cuts
• You have cash that you can leave untouched for the full CD term

The best CDs come with FDIC insurance, ensuring that deposits of up to $250,000 per individual, per institution, are secure. 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 certificate of deposit

Once you're ready to open a CD, the process is quick and easy to complete:

1. Shop around with different financial institutions to find the highest APY for the term you want.
2. Read the fine print and make sure you can meet the minimum deposit, if there is one, and ensure that you understand any early withdrawal penalties.
3. Apply for a new account on the bank's website, 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 your new CD. Remember that you can only make one deposit per CD, so have your full investment ready to transfer.

Click here to explore the best CD rates and open a high-yield CD today.

Once you've opened your CD, make a note of its maturity date. Upon maturity, the bank generally follows one of two courses unless instructed otherwise: it either disburses your initial deposit along with the accrued earnings as cash, or it reinvests your funds into a new CD with the same term, which may feature a different APY.

Most banks offer a grace period of between seven and 10 days after the CD's maturity date for you to make a decision about your next steps.

Earn up to 4.10% APY and keep your funds flexible

If you want to earn a high APY with more flexibility and less commitment than a CD provides, then look into a high-yield savings account.

The best high-yield savings accounts will allow you to do the following:

• Deposit and withdraw money whenever you want.
• Transfer money to other accounts quickly and easily.
• Simply deposit cash and leave it as long as you'd like.

Savings account rates are variable, meaning you don't get the guarantee that you do with a CD. But right now, high-yield savings accounts are nearly on par with the best CDs, making them a great choice if you're not ready to lock up your money and risk having to pay a penalty to withdraw it early.

If you want to earn a competitive APY without committing your cash for a minimum of several months, check out our list of the best high-yield savings accounts.

• Sources

  • https://www.ombbank.com/personal-banking/personal-savings/certificates-of-deposit/7-month-high-yield-special
  • https://drbank.com/rates/
  • https://www.mutualone.com/client-services/rates-calculators/deposit-rates/
  • https://www.brilliant.bank/cds/
  • https://www.nbkc.com/personal/certificate-of-deposits