Today’s Best CD Rates, April 29, 2025 (Lock-in to 4.40% APY)

The Federal Reserve reduced the federal fund three times in 2024. As a result, deposit account fees have been reduced.

Good news: You can lock competitive returns Deposit certificate (CD) Keep your income input today. In fact, the best CDs still pay a rate above 4%. Read today’s CD rate snapshots and where to find the best offers.

Today’s CDs typically offer significantly higher rates than traditional savings accounts. As of February, the best short-term CDs (6-12 months) usually offer APYs of around 4.00% to 4.50%.

Today, the best CD rate 4.40% APY offers Marcus by Goldman Sachs On a 14 month CD. You will need a minimum deposit of $500.

Below we look at some of the best CD rates available today from our verified partners.

See our best CD accounts and pricing recommendations >>

The 2000s were marked by the dot-com bubble and later there was the global financial crisis of 2008. The early 2000s saw a relatively high CD rate, but the economy slowed down and began to fall as the Federal Reserve reduced its target rate and stimulated growth. By 2009, in the aftermath of the financial crisis, CDs paid about 1% APY for an average of one year, while CDs paid less than 2% APY for five years.

The trend in CD rates continued until the 2010s, particularly after the Great Recession of 2007 to 2009. The Fed’s policies to stimulate the economy (particularly the decision to bring benchmark rates closer to zero) have led banks to offer very low interest rates on CDs. By 2013, the average rate of CDs for six months had dropped to about 0.1% APY, and the 5-year CDs had returned an average of 0.8% APY.

But things changed between 2015 and 2018. At this point, the CD rate improved slightly as the economy expanded, marking the end of a nearly 10-year ultra-low rate. However, the onset of the Covid-19 pandemic in early 2020 caused emergency fee cuts by the Fed, resulting in a new record drop in CD rates.

Things have been reversed following the pandemic as inflation rates became out of control. This has led the Fed to hike 11 rates between March 2022 and July 2023. This has resulted in higher rates for savings products including CDs and higher APY rates.

Fast forward to September 2024 – The Fed has decided to begin cutting fees for federal funds after determining that inflation is essentially under control. Today we are beginning to see CD rates drop from their peak. Still, CD rates remain high by historical standards.

See how CD rates have changed since 2009:

Traditionally, long-term CDs have offered higher interest rates compared to short-term CDs. This is because locking with money for longer periods usually means more risks (i.e., you miss a higher fee in the future) will compensate at a higher rate.

However, this pattern does not necessarily hold the present day. The highest average CD rate is the 12-month period. This indicates flattening or inversion of the yield curve that can occur in uncertain economic conditions or that can occur when investors expect future interest rates to decline.

read more: Short-term or long-term CD: Which is best for you?

when Open the CDChoosing one with a high APY is just one piece of the puzzle. There are other factors that can affect whether a particular CD is best suited to your needs and overall returns. When selecting a CD, consider the following:

• Your goal: Decide when you want to lock in your funds. CDs have fixed conditions and penalties can occur if you withdraw money before the end of the period. General terms range from months to years. The term that suits you will depend on when you expect to need access to your money.

• Types of financial institutions: Prices vary widely between financial institutions. Do not check with your current bank. Investigate CD rates from online banks, local banks and credit unions. Online Bankin particular, they offer higher interest rates than traditional brick and mortar stores, often due to their fictional costs. However, make sure that the online bank you consider is FDIC Insurance (Or you’re taking out NCUA insurance for your credit union).

• Account Terms: Understand the terms of the CD including maturity date, beyond interest rates, Retraction penalty. Also check if there are minimum deposit requirements. If so, it fits your budget.

• inflation: CDs can provide safe, fixed returns, but they may not always respond to inflation, especially for the long term. Consider this when determining this term and investment amount.