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

As of January 6, 2025, CD rates are still competitive, especially for shorter terms. For example, several financial institutions offer CD rates around 4.00% APY for terms of one year or less. Long-term CD rates aren’t as high, but prime deals are still around 3.00%-4.00% APY for terms of three years or longer.

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

Here’s a look at some of the best CD rates available today from our verified partners.

Check out our picks for the best CD accounts available today >>

If you are considering a CD, these rates are some of the highest availableespecially compared to national average rates, which are significantly lower. Also worth noting online banks i credit cooperatives they generally offer more competitive rates compared to traditional brick and mortar banks.

Read more: What is a good CD rate?

Below is the average CD rate by term as of December 2024 (the most recent data available from FDIC):

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

If you are thinking open a CDit’s important to choose one with a high APY and a term length that matches your financial goals. Here are some tips for finding the best CD rates and accounts to suit your needs:

• Buy: It’s a good idea to evaluate CD rates from several financial institutions and compare your options before closing an account. You can easily compare CD rates online.

• Consider online banking: 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 the minimum deposit requirements: Higher CD rates may lead to higher minimum deposit requirements, so make sure the amount you want to deposit aligns with the requirements to get the best rate.

• Review the account terms and conditions: Beyond the CD fee, see terms for early withdrawal penalties and auto-renewal policies. Some CDs offer better conditions for flexibility, such as CD without penaltywhich allow you to withdraw your funds without commission before the due date.