With CD rates continuing to decline, now’s the time to act if you want to secure a high annual percentage yield (APY). As of January 15, 2025, top CDs offer up to 4.65% APY, more than twice the national average for some terms.
Rates have been falling since the Federal Reserve cut interest rates at its last three meetings. Experts predict more rate cuts in 2025, making it essential to open a CD now to lock in a high APY.
According to CNET’s latest analysis of CD rates from over 50 banks and credit unions, you can earn up to 4.65% APY with some top CDs. However, it’s crucial to consider other factors when choosing a CD, such as the minimum deposit requirement, fees, and customer ratings.
To find the best CD for your needs, weigh these key factors:
* When you’ll need your money: Consider early withdrawal penalties and choose a term that fits your savings timeline.
* Minimum deposit requirement: Some CDs require a minimum amount to open an account. Determine how much money you have to set aside can help narrow your options.
* Fees: Maintenance and other fees can eat into your earnings. Look for online banks with lower overhead costs.
* Federal deposit insurance: Ensure the bank or credit union is FDIC- or NCUA-member to protect your money if it fails.
* Customer ratings and reviews: Research customer feedback on websites like Trustpilot to ensure you’re working with a responsive and professional institution.
Don’t miss out on these top CD rates, which include:
* CommunityWide Federal Credit Union’s 6-month CD at 4.65% APY
* America First Credit Union’s 3-year CD at 4.15% APY
* America First Credit Union’s 5-year CD at 4.25% APY
Act now to secure a high APY and protect your earnings from additional rate cuts.
Source: https://www.cnet.com/personal-finance/banking/jump-on-high-apys-before-theyre-gone-todays-cd-rates-jan-15-2025