World Stock Watch

Time-Sensitive Opportunity: Lock in High CD Rates Before They Drop

The Federal Reserve’s recent interest rate reductions in 2024 have created a window of opportunity for savers to secure high certificate of deposit (CD) rates. With rates expected to decline, now is the perfect time to take advantage of today’s competitive offers.

Competitive CD Rates Available

As of January 27, 2025, CD rates remain attractive, particularly for shorter terms. Several financial institutions offer rates around 4.00% APY for terms of a year or less. Longer-term CD rates are still respectable, with top offers hovering around 3.00%-4.00% APY for terms of three years and longer.

Top CD Rates from Verified Partners

Marcus by Goldman Sachs currently offers the highest CD rate of 4.30% APY on its 9-month CD, with a $500 minimum opening deposit required. Explore our curated list of top CD rates from trusted partners.

Why CDs Stand Out

CDs offer some of the highest available rates, especially when compared to national average rates, which are significantly lower. Online banks and credit unions tend to provide more competitive rates than traditional brick-and-mortar banks.

Understanding CD Rates

The highest national average interest rate for CDs stands at 1.82% for a 1-year term, according to the FDIC’s January 2025 data. Today’s average CD rates represent some of the highest seen in nearly two decades, thanks to the Federal Reserve’s efforts to combat inflation.

Tips for Finding the Best CD Rates

1. Shop Around: Evaluate CD rates from multiple financial institutions and compare your options before settling on an account.
2. Consider Online Banks: Online banks often have lower overhead costs, allowing them to offer higher interest rates on CDs.
3. Check Minimum Deposit Requirements: Ensure the amount you plan to deposit aligns with the requirements to get the best rate.
4. Review Account Terms and Conditions: Look beyond the CD’s rate and examine terms for early withdrawal penalties and auto-renewal policies.

Explore Other High-Yield Options

In addition to CDs, money market account interest rates and high-yield savings account rates are also worth exploring. Compare top offers and ensure you’re earning the best rate possible.