Savers looking to maximise their cash must act quickly as top Certificate of Deposit (CD) rates in the US have hit 4.65% APY as of 10 March 2025, but recent cuts by major banks like BMO Alto signal that these high yields will not last.
Key Insights for Savers
- Top-tier CDs are currently offering annual percentage yields (APYs) of up to 4.65%.
- Opening a CD allows you to lock in your interest rate for the entire term.
- With several financial institutions already reducing their rates, securing a CD now prevents future loss of earning potential.
Timing is everything when trying to get the best return on a certificate of deposit. Because your rate is guaranteed from the moment you open the account, securing a CD whilst rates are at their peak shields your savings from inevitable market declines.
Currently, the market’s leading CDs deliver APYs reaching 4.65%, which is more than triple the national average for specific terms. Although yields have remained relatively stable since the Federal Reserve reduced rates in January, recent shifts indicate a downward trend. For instance, BMO Alto recently cut APYs across several terms, whilst America First Credit Union reduced its five-year CD rate from 4.25%—where it had sat since November—to 4.20%.
Noah Damsky, CFA and Principal of Marina Wealth Advisors, warns against delaying: “If you are waiting for CD rates to climb further before committing your cash, you may end up disappointed. If I were looking to open a CD today, I would lock in a rate immediately, as they could easily drop tomorrow.”
Below is a breakdown of the highest CD rates currently available on the market and the projected earnings based on different deposit amounts.
Compare the Best CD Rates Today
| Term | Highest APY* | Bank | Estimated Earnings ($1,000 Deposit) | Estimated Earnings ($5,000 Deposit) | Estimated Earnings ($10,000 Deposit) |
|---|---|---|---|---|---|
| 6 months | 4.65% | CommunityWide Federal Credit Union | $22.99 | $114.93 | $229.85 |
| 1 year | 4.45% | CommunityWide Federal Credit Union | $44.50 | $222.50 | $445.00 |
| 3 years | 4.15% | America First Credit Union | $129.74 | $648.69 | $1,297.38 |
| 5 years | 4.20% | America First Credit Union | $228.40 | $1,141.98 | $2,283.97 |
Crucial Benefits of Securing a CD Rate Now
Certificates of deposit provide distinct advantages for conservative savers, including:
- Highly competitive yields: Traditional savings accounts often offer nominal returns, sometimes dropping to 0.01% APY. By contrast, top-tier CDs yield 4.50% or more, significantly boosting your passive returns.
- Guaranteed financial returns: Unlike standard savings accounts where interest rates fluctuate based on market conditions, a CD locks in your APY. This fixed rate allows you to calculate exact future earnings and protects your capital from falling interest rates.
- Low-risk profile: Accounts held at FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, and per account category. While volatile assets like shares might offer higher long-term growth, they carry the risk of capital loss.
- Built-in savings discipline: Standard savings accounts allow free, instant access to funds. Most CDs, however, impose an early withdrawal penalty if money is accessed before maturity, acting as a deterrent against premature spending.
CD vs. Savings Account: Deciding the Best Fit for Your Money
While CDs offer excellent security and high rates, they are not a universal solution. “It really depends on your goals,” explains Taylor Kovar, certified financial planner and CEO of 11 Financial.
To determine if a CD aligns with your financial strategy, consider the following questions:
- When do you need to access the cash? CDs are ideal for structured savings goals with fixed timelines, offering terms ranging from three months to several years. If you are saving for a home deposit in five years, a five-year CD is an excellent choice. If you need immediate liquidity for an emergency fund, a flexible savings account is more appropriate.
- What is your initial deposit size? Many high-yield CDs require a minimum initial deposit, typically between $500 and $1,000. If you do not meet these thresholds, a high-yield savings account with no minimum deposit might be a better alternative.
- Do you want to make ongoing contributions? The majority of CDs only permit a single, one-time deposit at account opening. If you plan to add money to your savings on a regular basis, a high-yield savings account is highly recommended.
- Do you require strict spending boundaries? If you struggle to leave your savings untouched, the early withdrawal penalties associated with a CD can provide the necessary friction to keep your financial plans on track.
💰You can earn up to 5% APY on today’s best high-yield savings accounts. Check out top savings rates now.
Our Research Methodology
CNET monitors and reviews CD rates using the latest APY data sourced directly from financial institutions. We evaluate products from over 50 banks, credit unions, and financial entities, assessing them on yield competitiveness, product diversity, accessibility, and customer service quality.
The institutions tracked in our weekly averages include: Alliant Credit Union, Ally Bank, America First Federal Credit Union, American Express National Bank, Barclays, Bask Bank, Bethpage, BMO Alto, Bread Savings, Capital One, CFG Bank, CIT, CommunityWide Federal Credit Union, Connexus Credit Union, Discover, EverBank, First Internet Bank of Indiana, First National Bank of America, Fulbright, Limelight Bank, Marcus by Goldman Sachs, MYSB Direct, Popular Bank, Quontic, Rising Bank, and Synchrony.
*APYs are accurate as of 10 March 2025, based on tracked institutions. Estimated earnings assume interest is compounded annually and held for the full duration of the term.