Best CD rates today, June 17, 2025 (Lock in up to 4.2% APY)
The Federal Reserve lowered the federal funds three times in 2024. As a result, deposit account rates are on the decline. The good news: You can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. In fact, the best CDs still pay rates above 4%. Read on for a snapshot of CD rates today and where to find the best offers.
CDs today typically offer rates significantly higher than traditional savings accounts. As of June, the best short-term CDs (six to 12 months) generally offer rates around 4% to 4.5% APY.
Today, the highest CD rate 5.5% APY, offered by Gainbridge® on its 5-year CD. There is a $5000 minimum opening deposit required.
The following is a look at some of the best CD rates available today from our verified partners.
This embedded content is not available in your region.
The 2000s were marked by the dot-com bubble and later, the global financial crisis of 2008. Though the early 2000s saw relatively higher CD rates, they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, in the aftermath of the financial crisis, the average one-year CD paid around 1% APY, with five-year CDs at less than 2% APY.
The trend of falling CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Fed's policies to stimulate the economy (in particular, its decision to keep its benchmark interest rate near zero) led banks to offer very low rates on CDs. By 2013, average rates on 6-month CDs fell to about 0.1% APY, while 5-year CDs returned an average of 0.8% APY.
However, things changed between 2015 and 2018, when the Fed started gradually increasing rates again. At this point, there was a slight improvement in CD rates as the economy expanded, marking the end of nearly a decade of ultra-low rates. However, the onset of the COVID-19 pandemic in early 2020 led to emergency rate cuts by the Fed, causing CD rates to fall to new record lows.
The situation reversed following the pandemic as inflation began to spiral out of control. This prompted the Fed to hike rates 11 times between March 2022 and July 2023. In turn, this led to higher rates on loans and higher APYs on savings products, including CDs.
Fast forward to September 2024 — the Fed finally decided to start cutting the federal funds rate after it determined that inflation was essentially under control. Today, we're beginning to see CD rates come down from their peak. Even so, CD rates remain high by historical standards.
Take a look at how CD rates have changed since 2009:
Traditionally, longer-term CDs have offered higher interest rates compared to shorter-term CDs. This is because locking in money for a longer period typically carries more risk (namely, missing out on higher rates in the future), which banks compensate for with higher rates.
However, this pattern doesn't necessarily hold today; the highest average CD rate is for a 12-month term. This indicates a flattening or inversion of the yield curve, which can happen in uncertain economic times or when investors expect future interest rates to decline.
Read more: Short- or long-term CD: Which is best for you?
When opening a CD, choosing one with a high APY is just one piece of the puzzle. There are other factors that can impact whether a particular CD is best for your needs and your overall return. Consider the following when choosing a CD:
Your goals: Decide how long you're willing to lock away your funds. CDs come with fixed terms, and withdrawing your money before the term ends can result in penalties. Common terms range from a few months up to several years. The right term for you depends on when you anticipate needing access to your money.
Type of financial institution: Rates can vary significantly among financial institutions. Don't just check with your current bank; research CD rates from online banks, local banks, and credit unions. Online banks, in particular, often offer higher interest rates than traditional brick-and-mortar banks because they have lower overhead costs. However, make sure any online bank you consider is FDIC-insured (or NCUA-insured for credit unions).
Account terms: Beyond the interest rate, understand the terms of the CD, including the maturity date and withdrawal penalties. Also, check if there's a minimum deposit requirement and if so, that fits your budget.
Inflation: While CDs can offer safe, fixed returns, they might not always keep pace with inflation, especially for longer terms. Consider this when deciding on the term and amount to invest.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Save Your Batteries, This Solar-Powered Security Camera Is 50% off Right Now
Are you looking to outfit your home with a new smart security camera? While sales events like Prime Day in July are a great time to buy, you can get this excellent Eufy wireless solar-powered 2K security camera today for only $65. The Eufy Solocam S220 is a capable outdoor security camera like any other, only it has a few fancy tricks up its sleeve. You won't have to run a bunch of long power wires or deal with constantly replacing or recharging batteries, something most security cameras struggle with. That's because this outdoor security camera is solar-powered and only needs about three hours of sunlight to keep tabs on your home daily. Eufy's Solocam S220's MSRP is $130, although it is often discounted to under $100. Lucky for you, Amazon just slashed the price by 50%, making this stellar camera only $64.99. So, what does this camera offer, and what can you expect for your money? Well, quite a bit, thankfully. It's easy to mount just about anywhere, although you'll want a spot with plenty of sunshine. Then, pair it with the Eufy app, and you'll get crystal-clear 2K resolution video of all the happenings around your home. While the battery inside is charged by the solar cell, you shouldn't have to deal with it at all. The Eufy Solocam S220 offers night vision thanks to an Infrared LED and movement detection. It also uses AI to detect familiar faces, animals, and more to know when a notification is worth sending. That way, you won't get alerts for a branch blowing in the wind. This outdoor solar-powered security camera only takes about five minutes to install. It has a durable IP67 rating to handle any outdoor conditions, 2-way audio, and custom security zones you can customize in the app, to name a few. More importantly, there's no monthly fee with Eufy, so you buy once and enjoy peace of mind for years to come. If there's a downside, the unit only has 8GB of storage, so storage space is somewhat limited. Either way, this solid camera makes home security a breeze. Grab yours before it sells out.
Yahoo
15 minutes ago
- Yahoo
Lightroom is working on a solution to my most-hated part of photo editing – and I couldn't be more excited
When you buy through links on our articles, Future and its syndication partners may earn a commission. Between taking photos and editing photos sits one of my least favorite parts of photography: culling, or the process of choosing which photos to edit. As a wedding photographer, culling a gallery of several thousand images takes hours of clicking through to find the best shots. But Adobe Lightroom is working on a new tool that could help speed up the culling process. In a teaser on social media, Adobe shared that developers are working on AI filters, a tool that works to recognize throw-away shots, like shots that are out of focus and blinking portraits. The AI filters, like many of the Lightroom tools, use a slider, allowing photographers to control how strictly to apply these auto-selection filters. A clean-up slider will also help remove accidental shutter triggers, as well as shots that are over- or underexposed. The AI will also be able to auto-group similar shots together, like those taken with burst mode. AI culling tools aren't new – but the tools that exist are third-party platforms and plug-ins that add to the growing number of subscriptions. While I hate culling, my growing subscription aversion has prevented me from buying AI culling software. The idea of getting faster culling without another subscription is one that I can get on board with (albeit one that has recently increased in price). I'm a Lightroom Classic user, and many of the latest AI-based tools have saved me a lot of time. If AI can do to culling what subject selection did to masking, then such a tool would save me hours of sifting through photographs. Sometimes, accidental photos end up as happy surprises – an out-of-focus shot that still captures the emotion of the moment, for example. That's why I'm excited by AI-supportive culling that adds speed yet still leaves the photographer in the driver's seat. But where I think AI culling can save the most time is picking the best shot out of several similar images. I spent a lot of time looking at similar photos to find the one that's the sharpest and discarding the close-eye shots. When I chatted with Adobe during the B&H Bild Expo in New York, Adobe indicated the AI filtering would be coming later this year to both Lightroom Classic and Lightroom Desktop. AI-based subject detection has saved me hours on tasks like whitening teeth, without even using generative AI. I have high hopes that the upcoming Lightroom AI Filters tool brings more of the same time-saving shortcuts to culling. Tired of culling too? Browse the best photo culling software. Or, take a look at the best photo editing software.
CNBC
19 minutes ago
- CNBC
The Israel-Iran conflict and the other big thing that drove the stock market this week
It's been a tense and dynamic week for the world at large. The market action on Wall Street over the past four sessions was been anything but that. For the week, the S & P 500 lost 0.15%, the tech-heavy Nasdaq ticked up 0.21%, and the Dow Jones Industrial Average was basically flat, up a mere 0.02%. Beneath the surface, though, there was plenty of news for investors to digest. Here's a closer look at the biggest market themes during the holiday-shortened trading week. 1. Geopolitics: The major news story was — and still is — the intensifying war between Israel and Iran. The big question on everyone's mind is whether the U.S. will get involved. As of Friday, reports indicate that while President Donald Trump is actively reviewing options to attack Iran, nothing has been authorized. The White House has said Trump he will make a decision in the "next two weeks". As a result of the Israel-Iran conflict, investors spent the week keeping an extra close eye on the movement in safe-haven assets like gold and the dollar, as well as risk assets such as oil. Gold prices pulled back this week after their initial spike last Friday, which is when Israel's first attack on Iranian nuclear infrastructure jolted markets. The U.S. dollar index , meanwhile, strengthened this week but still remains near multiyear lows. Oil rose again for the week, with international benchmark Brent crude climbing nearly 4%. For those looking to gauge what the market thinks will happen with Iran, look to oil. The commodity is currently acting as something of proxy on the odds of the conflict intensifying and America directly entering the fray. 2. Fed updates: The other big theme of the week centered on the health of the U.S. economy in the lead up to Wednesday afternoon, when we got the Federal Reserve's latest interest rate decision and revised economic projections. Ultimately, the Fed kept its benchmark lending rate unchanged on Wednesday following its two-day policy meeting. The decision followed lackluster updates on the state of the consumer and the housing market , along with lower-than-expected inflation readings the week prior. As we outlined earlier this week , the Fed is in a tough spot when it comes to abiding by its dual mandate of ensuring price stability and low unemployment. The state of play requires nuance. On the one hand, there is evidence in support of rate cuts, namely some cracks in the consumer — even if the consumer has remained largely and impressively resilient — and the Fed's own updated outlook for lower real GDP growth and higher unemployment this year. On the other hand, the Fed is now expecting higher inflation this year than it did in March, which would support the need for higher interest rates. Given these dueling dynamics and the uncertainty around tariff impacts, the central bank's decision to keep interest rates steady makes sense. While the Fed certainly doesn't want to wait too long and make the same mistake we saw coming out of the Covid-19 pandemic, we must acknowledge that the causes of a potential rebound in inflation are different this time around. Tariffs will likely push up prices, but that may be a one-time increase, as opposed to the sustained inflation we saw exiting the pandemic, which was driven by massive supply chain disruptions and shifts in consumer behavior. As a result, we believe the apparent bias to be more worried about the job market and overall economic growth — and therefore cut rates later this year — makes sense, too. Indeed, the Fed's updated projections still pencil in two rate cuts in 2025, the same as in March despite the aforementioned revisions to its inflation and growth outlook. Fed Governor Christopher Waller made the case Friday that the cuts should start as early as July, arguing that the inflation risk posed by tariffs is not significant and ensuring resiliency in the labor market should be a higher priority. Waller's argument is basically that it's better to move now than wait for a jump in unemployment. Our biggest focus at the Club is staying nimble, given the highly volatile nature of geopolitics at the moment. No doubt, rate decisions are important to think about, but they're only one small part of the investing puzzle to navigate each day. For this reason, we continue to focus more on individual company fundamentals and industry trends rather than higher-level dynamics, important as they are to shaping our worldview. Cybersecurity stocks are one example that we highlighted this week. Another example would be the news we got from Club names Meta Platforms and Amazon this week on their artificial intelligence efforts. We think the implications that AI will have on the cost structures, revenue opportunities and efficiency gains should weigh far more heavily in the minds' of long-term investors than whether the Fed will cut in July or September. (Jim Cramer's Charitable Trust is long META, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
