You can earn up to 4.65% APY. Check out the best CD rates on January 28, 2025

The best CD rates on January 28 returned up to 4.65% annual percentage yield. That means you could lock in high rates for years if you funded a certificate right now, depending on the term that’s best suited to your financial goals. Markets expect a few more Fed rate cuts this year, so there’s no time to waste.

Best CD rates on January 28, 2025: Earn up to 4.65%

The highest CD rate on January 28, 2025 was 4.65, offered by Bask Bank on its 3 month CD. Fortune monitors the top rates offered by leading U.S. financial institutions to help readers obtain the best possible return on their CD investments. Here are that day’s highest CD rates:

Compare CD rates by term length

Currently, CD rates are high for both short-term and long-term options. While APYs aren’t the only factor to consider when choosing an institution for your CD, being aware of the highest rates available can help you make an informed decision about how long you want to tie up your funds.

Compare CD rates at top national banks

If you’re unfamiliar with many of the bank names mentioned above, there’s a straightforward reason. CDs typically don’t generate substantial income for major financial institutions on their own.

Large, national banks like Chase, PNC, and U.S. Bank focus on attracting customers through more profitable products, such as loans and credit cards, rather than CDs. As a result, the interest rates offered on CDs at these banks are often much lower than those available at smaller regional banks or online institutions. Additionally, to secure a good rate at these larger banks, you may be required to open other deposit accounts or deposit much higher minimums.

CD rates news 2025

Investors should recognize that average CD rates rise and fall close on the heels of Federal Reserve monetary policy changes, specifically fluctuations in the fed funds rate. It’s crucial for those investing in CDs to monitor the central bank’s policy shifts to anticipate potential rate changes.

This week, the Federal Open Market Committee (FOMC) is convening for its first semi-annual meeting of 2025. Analysts predict no alterations to the fed funds rate at this meeting, suggesting that CD rates will likely remain stable for the foreseeable future. The next FOMC meeting is set for March 18-19.

Last year, the Fed implemented three reductions to the fed funds rate, bringing it down to a range of 4.25%-4.50% as of December 2024. As the pandemic surge in inflation cooled down, the central bank eased rates to support the economy. Consequently, CD rates fell from their recent peak.

The record-high CD rates in 2022 and 2023 were primarily driven by the Fed’s aggressive rate hikes. Between March 2022 and July 2023, the FOMC increased the fed funds rate a total of 11 times, taking it from zero to a range of 5.25%-5.50%. This was in response to inflation levels not seen since the 1980s, spurred by significant economic disturbances.

Keep in mind that CD rates are still close to their recent peaks, indicating favorable market conditions. Investors have the chance to lock in competitive rates on both short-term and long-term CDs. By contributing a larger lump sum to your CD investment, you can achieve considerable interest earnings.

Historical CD rates

In the early 1980s, CD rates soared into double digits, starkly contrasting modern rates. By 2019, however, the APY for a five-year CD was just above 3%.

Throughout the early 2020s, top rates generally stayed below 1% APY. Recently, we saw a period of rising rates, with the best offerings exceeding 5% APY for 1-year CDs. These are beginning to fall slightly, but are still much higher than pre-pandemic times.

How to get a good CD rate

Determining a “good” CD rate depends on balancing the highest rate with your ability to keep funds locked for the term. For example, a 5% APY CD over five years might not be ideal if you need liquidity sooner or if rates rise, leaving you with a lower return. Generally, rates above the national average are worthwhile. Compare rates across banks for your desired term to find the best option.

Key factors to evaluate when comparing CDs include:

• Term length: Ensure it matches your savings goals and timeline.
• APY: Higher rates are usually offered for longer terms.
• Penalties: Understand the costs associated with early withdrawals.
• Minimum deposit: Ensure you meet the required minimum balance.
• Deposit insurance: Verify Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) coverage.

Additionally, online banks typically offer higher interest rates—but check for any minimum balance requirements and associated fees. Opting for a bank rather than a broker might help avoid unnecessary fees.

Look into offerings from online banks

Online banks and financial technology companies (fintechs) typically offer better rates than national banks. Large financial institutions generate revenue primarily through interest on loans, fees, and investments in securities.

Alternatively, smaller banks and online fintech companies attract new customers by offering competitive APYs on deposit accounts. Additionally, online banks usually have lower overhead costs, enabling them to provide better rates to their clients.

Set up a CD ladder

CD ladders are ideal for savers reluctant to lock in their money for long periods of time. By splitting savings across CDs with varying maturities, you can enjoy both short-term access and higher long-term rates.

For example, you could invest $3,000 in three staggered CDs (1-year, 2-year, and 3-year). As each CD matures, reinvest the money into a new 3-year CD. This strategy provides annual access to your money plus the interest earned.

How do CDs work? 

A certificate of deposit is a specialized savings account where you earn interest by depositing money for a predetermined length of time. Unlike traditional savings accounts, which have interest rates that fluctuate with market conditions, a CD offers a fixed interest rate for the entire term. This stability allows savers to benefit from higher returns, especially during periods of elevated interest rates set by the Federal Reserve.

When your CD reaches maturity, you gain access to both your initial deposit and the accrued interest. A key distinction between a CD and standard savings account is that funds deposited in a CD are inaccessible for withdrawal until the term concludes. You will incur an early withdrawal fee if you need to access the money early.

Types of CDs

Different types of CDs serve various needs:

• Brokered CDs are purchased and sold through brokerage accounts rather than directly from banks or credit unions. Brokered CDs typically offer higher APYs than traditional CDs because they are issued by banks and then sold to brokerages.
• Callable CDs include a call feature that allows the issuing institution to terminate the CD before its maturity date. If this feature is exercised, investors receive their principal and any accrued interest up to the call date.
• Bump-up CDs allow you to request a higher APY if interest rates rise after you’ve opened the account. You can usually adjust the rate once or twice during the CD’s term.
• No-penalty CDs do not impose penalties for early withdrawals before maturity. This type is less common and may offer lower APYs than traditional CDs.
• Jumbo CDs require a minimum initial deposit, often starting at $100,000 or more. They generally offer higher APYs than standard CDs.
• Variable-rate CDs have an APY that changes in response to prevailing interest rates. These CDs carry more risk than traditional CDs because decreasing interest rates before maturity can lead to a lower yield.

The takeaway

Currently, CD rates are high for both short and long terms. While APYs are important, they’re not the only factor to consider when deciding where to open your CD. However, being aware of the highest available rates can help you make a well-informed decision.