Who is paying the highest CD rates right now?

Right now, Quontic, Bask Bank, and Citibank are offering the highest APYs on their 3-month CDs. For savers looking for longer term lengths, Colorado Federal Savings Bank and First National Bank of America are offering high APYs on their 1-year term lengths, at 4.50% and 4.52%, respectively. Quontic Bank 4.95% on a 3-month CD Bask Bank 4.90% on a 3-month CD Citibank 0.05% on a 3-month CD UMB Bank 0.05% on a 3-month CD

In which situation would a certificate of deposit (CD) be the best banking choice?

A CD may be the best banking choice for you if you are saving for a long-term goal with a specific timeline in mind. To avoid early withdrawal penalties or potentially forfeiting any interest earned on the funds in your CD, you want to be sure that you won't need access to your money before your CD's maturity date.

Can you add money to a CD?

When you invest in a CD, you typically deposit one lump sum and then leave it alone until the account reaches maturity. However, some financial institutions offer special types of "add-on" CDs that allow you to deposit additional funds after the initial deposit. The amount and frequency of deposits you're allowed to make depend on the particular account.

How often do current CD rates change?

Banks and credit unions update current CD rates based on market conditions. These rates typically receive an update no more frequently than weekly, although some don't do so for months.

Is now a good time to lock in a CD?

CD rates are the highest they've been in years, but they're starting to fall with the Fed's rate change. So, yes, it's a good time to put your money in a CD, but hurry if you want to lock in your money at a top rate.

Are CDs FDIC insured?

Yes, certificates of deposit are insured by the Federal Deposit Insurance Corp. (FDIC). The FDIC insures all its members’ bank accounts, including savings, money market accounts, and CDs, up to $250,000 per customer per bank. Therefore, in the rare case of a bank failure, your money stays safe. If you take out a CD with a credit union, make sure it’s insured through the National Credit Union Administration (NCUA)—a similar institution to the FDIC that insures credit unions.

Why should you put $15,000 into a 1 year CD now?

If you have $15,000 to lock up for a year in a CD, now could be a good time to do it. CD rates are just starting to drop in response to the fed's hints that it'll lower interest rates at least once this year, so if you've been thinking about a CD, now is the time to act.

Are short-term or long-term CD rates better?

Generally speaking, long-term CDs offer higher interest rates than short-term CDs—think of it as a reward for committing your money for a longer period. However, this is not always the case. When the yield curve inverts, short-term CDs boast higher rates than long-term CDs. Overall, whether it's better to choose a short-term or long-term CD depends on your goals and the current interest rate environment. Learn more about how to invest in CDs in our guide.

Are CDs good during inflation?

CDs can be a good investment when inflation is high, but since interest rates tend to rise and fall with the inflation rate, you might be breaking even when you account for taxes too. For example, when inflation is high, the Federal Reserve will raise interest rates to curb demand and reduce inflation. While you’ll score a higher APY on a CD, the high inflation rate could wipe out most of the returns you get from the CD. Note that since CDs usually offer higher interest rates than checking accounts and traditional savings accounts, CDs can help you better outpace inflation than other deposit accounts. Plus, you can lock in rates with CDs.

Home
Personal Finance
Education
Business Solutions
Shopping

We have independently evaluated the products and services below. We may earn affiliate revenue from links in the content.

Home Page

Personal Finance

Credit Cards
Banking

Savings

Best Savings Accounts
Best High-Yield Savings Accounts
What is a High-Yield Savings Account?
Savings Calculator

CDs

Best CD Rates
Current CD rates
1-Year CD Rates

Best Money Market Accounts
Best Cash Advance Apps
Free Checking Accounts
Checking Account Bonuses
Online Banks & Credit Unions
Business Checking Accounts
Budgeting Apps

Insurance

Jewelry Insurance
Small Business Insurance Companies

Mortgages

Home Equity Loan Rates

Investing

Investments
Online Brokerages
Investment Apps
Cryptocurrency Apps & Exchanges
Roth IRAs
Robo-Advisors

Loans

Best Credit Repair Companies
Best Debt Relief Companies
Personal Loans
Buy-Now, Pay-Later Apps

Education

Business
Tech
Health & wellness

Business Solutions

VoIP
CRM
Payroll
Web Hosting

Shopping

Shopping Guides

Go to Fortune.com

BANKING

PERSONAL FINANCE
BANKING
THE 10 BEST CD RATES FOR JANUARY 2025: EARN UP TO 5%

The 10 best CD rates for January 2025: Earn up to 4.25%

$\"Highest$