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

As of January 20, 2025, CD rates are still competitive, particularly for shorter terms. For example, several financial institutions offer CD rates around 4.00% APY for terms of around a year or less. Longer-term CD rates are not quite as high, but the top offers still hover around 3.00%-4.00% APY for terms of three years and longer.

Today, the highest CD rate 4.27% APY, which is offered by NexBank on its 1-year CD term. However, there is a large minimum opening deposit of $25,000.

The next-highest rate is 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD. A minimum deposit of $500 is required.

Here is 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’re considering a CD, these rates are some of the highest available, especially when compared to the national average rates, which are significantly lower. It’s also worth noting that online banks and credit unions 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 by term as of December 2024 (the most recent data available from the FDIC):

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

If you’re thinking about opening a CD, it’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 settling on an account. You can easily compare CD rates online.

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

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

• Review account terms and conditions: Beyond the CD’s rate, look at terms for early withdrawal penalties and auto-renewal policies. Some CDs offer better terms for flexibility, such as no-penalty CDs, which allow you to withdraw your funds without a fee before the maturity date.