Savers can still secure outstanding returns of up to 4.65% APY as the US Federal Reserve decided to hold interest rates steady during its monetary policy meeting on 19 March 2025, offering a crucial window of opportunity to lock in high-yield certificates of deposit (CDs) before banks begin to lower their rates.
Key takeaways
- The market’s leading CDs are currently yielding up to 4.65% APY.
- Following the Fed’s decision to pause rate adjustments, high APYs are expected to persist in the short term.
- Because financial institutions can adjust their rates at any moment, locking in a fixed APY now protects your future interest earnings.
The Federal Open Market Committee met yesterday and, as widely anticipated, kept the benchmark interest rate unchanged. For savers, this means the window to capitalise on highly competitive certificate of deposit rates remains open. Given the ongoing economic unpredictability, allocating funds to a CD serves as an effective strategy to introduce low-risk stability to a broader financial portfolio.
“CDs are FDIC-insured, so if keeping your money safe and your risk low is a priority, CDs make a lot of sense,” explained Bobbi Rebell, Certified Financial Planner® and Personal Finance Expert with BadCredit.org. “You also know exactly how much return you are going to get, so you can plan for future goals, like saving for a home down payment, while getting a better return than in a traditional savings account.”
Currently, the market’s premier CDs yield up to 4.65% annual percentage yield (APY) — a figure that stands at more than triple the national average for particular terms. The table below outlines the highest CD rates currently on offer alongside projected returns based on initial deposit amounts.
Best CD rates today
| Term | Highest APY* | Bank | Estimated earnings on $1,000 deposit | Estimated earnings on $5,000 deposit | Estimated earnings on $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 |
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Comparing rates across different financial institutions is essential to securing the most competitive APY available for your savings.
Top reasons to open a CD now
Certificates of deposit offer several distinct structural advantages for personal portfolios:
- Minimal risk profile: Accounts opened with an FDIC-insured bank or NCUA-insured credit union are federally protected up to $250,000 per depositor, per institution, and per account category. This safeguard ensures your principal remains secure even in the event of a bank failure. While volatile assets like equities might offer higher long-term growth, they carry the risk of capital loss.
- Guaranteed financial returns: Unlike traditional savings accounts with variable rates that fluctuate alongside market trends, a CD locks in your APY at the moment of account opening. This fixed rate provides precise predictability for future earnings and shields your cash from subsequent rate drops.
- Highly competitive yields: Standard savings accounts frequently offer negligible returns, occasionally bottoming out at 0.01% APY. By contrast, top-tier CDs are currently yielding 4.50% APY or more, allowing savers to outpace inflation and generate meaningful interest.
- Encouraged savings discipline: Standard savings accounts allow immediate, fee-free access to cash (subject to individual account terms). Conversely, most CDs impose an early withdrawal penalty for accessing funds before the maturity date, creating a practical deterrent against spending money earmarked for long-term goals.
High-yield savings accounts are also worth considering
While CDs present clear benefits, they are not a universal solution for every saver. “It really depends on your goals,” noted Taylor Kovar, certified financial planner and CEO of 11 Financial.
Key questions to ask before locking in your cash
- What is your savings timeline? CDs are highly effective for structured goals with clear deadlines. Terms range from three months to several years. For instance, a five-year CD is an excellent tool to grow a deposit for a future property purchase. However, if you are building an emergency fund that requires immediate liquidity, a high-yield savings account is a far more suitable vehicle.
- What is your initial capital? Opening a CD often requires a minimum deposit, commonly ranging from $500 to $1,000. Savers who do not meet these minimums or who want to avoid high entry thresholds may find better terms with a low-minimum or zero-minimum high-yield savings account.
- Do you want to make ongoing contributions? The vast majority of CDs only permit a single, initial deposit. If your strategy involves adding regular savings over time, a high-yield savings account offers the flexibility you require.
- Do you require structural spending limits? If you struggle to leave your savings untouched, the financial penalty associated with early CD withdrawals can provide the necessary boundary to keep your savings plan on track.
💰You can earn up to 5% APY on today’s best high-yield savings accounts. Check out top savings rates now.
Methodology
CD rate evaluations are conducted using the latest verified APY data sourced directly from financial institution websites. Rates are monitored across more than 50 banks, credit unions, and financial services companies, assessing products based on yield competitiveness, product variety, ease of access, and customer service quality.
The institutional rate averages tracked weekly include Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America, and Connexus Credit Union.
*APYs are accurate as of 20 March 2025, based on monitored institutions. Estimated returns are calculated based on stated APYs, assuming annual compounding of interest.