If you’re looking for a safe place to store your savings, a certificate of deposit (CD) can be a great choice. These accounts often offer higher interest rates than traditional checking and savings accounts. However, CD prices can vary widely. Learn more about CD prices today and where to find them High Yield CDs with the best available prices.
Today’s CD prices vary quite a bit. In general, however, CD rates are starting to fall due to the Fed’s decision to cut its benchmark rate three times at the end of 2024. Even so, some banks are still offering competitive CD rates.
Check out our picks for the best CD accounts available today>>
For those that are, the highest rates come in around 4% APY. This is especially true for shorter terms of one year or less.
Today, the highest rate CD can be found in Marcus by Goldman Sachs, which offers 4.25% APY on its one-year term. A minimum initial deposit of $500 is required.
Here’s a look at some of the best CD prices available today:
Compare these rates with the national average as of December 2024 (latest data available from FDIC):
Compared to today’s top CD prices, the national averages are much lower. This highlights the importance of buying CDs at the best prices early account opening.
Online banks and neobanks are financial institutions that operate exclusively through the web. This means they have lower overhead costs than traditional brick and mortar banks. As a result, they can pass that savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you’re looking for the best CD prices available today, an online bank is a great place to start.
However, online banks are not the only financial institutions that offer competitive CD rates. Also worth checking out credit unions. As non-profit financial cooperatives, credit unions return their profits to customers, who are also member owners. Although many credit unions have strict membership requirements that are limited to those who belong to certain associations or work or live in certain areas, there are also a few credit unions where almost anyone can join.
Whether or not you put your money into a CD depends on your savings goals. CDs are considered a safe and stable means of saving – they don’t lose money (in most cases), are backed by federal insurance and allow you to lock in today’s best rates.
However, some drawbacks should be taken into account. First, you must keep your money on deposit for the entire term or you will be subject to early withdrawal penalties. If you want flexible access to your funds, a high yield savings account or money market account may be a better choice.
Additionally, while today’s CD rates are high by historical standards, they don’t match the returns you could get by investing your money in the market. If you’re saving for a long-term goal like retirement, a CD won’t provide the growth you need to reach your savings goal in a reasonable amount of time.
Read more: Short-term or long-term CD: Which one is best for you?
