CD Rates Today, January 6, 2025 (Lock in up to 4.25% APY)

The Federal Reserve has reduced its target interest rate three times in 2024. This will have a ripple effect on the rates of deposit accounts, which means that now could be your last chance to lock in the high rates of today with a certificate of deposit (CD). Here’s a look at today’s CD prices and where you can find the best deals.

As of January 6, 2025, CD rates are still competitive, especially for shorter terms. For example, many financial institutions offer CD rates around 4.00% APY for terms of about a year or less. Long-term CD rates aren’t as high, but the top deals are still around 3.00%-4.00% APY for terms of three years and longer.

Today, the highest CD rate is 4.25% APY, offered by Marcus from Goldman Sachs on its 1-year CD. There is a minimum opening deposit of $500 required.

Here’s a look at some of the best CD rates available today from our verified partners.

See our picks for the best CD accounts available today >>

If you are considering a CD, these rates are some of the highest availableespecially when compared to national average rates, which are significantly lower. It is also worth noting that online banking and credit cooperatives they generally offer more competitive rates compared to traditional brick and mortar banks.

Read more: What is a good CD rate?

Here’s a look at the average CD rate for December 2024 terms (the most recent data available from the FDIC):

The highest national average interest rate for CDs is 1.83% for a 1-year term. However, overall, today’s average CD rates represent some of the highest seen in nearly two decades, largely due to the Federal Reserve’s efforts to fight inflation by keeping interest rates high .

If you think opening a CDit’s important to choose one with a high APY and term length that matches your financial goals. Here are some tips for finding the best CD rates and accounts that match your needs:

• Shop around: It’s a good idea to evaluate CD rates from a variety of financial institutions and compare your options before setting up an account. You can easily compare CD prices online.

• Consider online banking: Online banks tend to have a lower cost, which allows them to offer higher interest rates on CDs. In fact, online banks often have the most competitive rates available.

• Check the minimum deposit requirements: Higher CD rates may come with higher minimum deposit requirements, so make sure the amount you plan to deposit aligns with the requirements to get the best rate.

• Check the account terms and conditions: Beyond the CD rate, look at terms for early withdrawal penalties and automatic renewal policies. Some CDs offer better terms for flexibility, such as CD without penaltywhich allow you to withdraw your funds without a fee before the maturity date.