In a world of various savings and investment products and uncertain returns, certificates of deposit stand out for their refreshing simplicity. Today, these accounts provide guaranteed returns of up to 4.50% APY with no complicated formulas or market watching required.

Unlike the rates of high-yield savings accounts that tend to shift after the Fed changes its benchmark rate, CDs provide something certainty until their maturity date. This means that once you lock in, your rate stays the same from day one, creating a predictable timeline for your money's growth that you can count on.

The safety of your money matches the simplicity of the product. FDIC insurance protecting your deposit up to $250,000, while the fixed rate protects your returns from market swings and economic shifts. This dual layer of protection makes CDs an ideal foundation for any savings strategy.

If you're wondering how much to keep in a CD, today's online banks make it easy to start small and scale up. Many offer competitive rates with small or no minimum deposit requirements, letting you test the waters before making larger commitments.

Whether you're building an emergency fund or want to add low-risk assets to your portfolio, here's where to find top-yielding CDs across various terms with streamlined online signup.

💰 Today's best savings rates: Score elevated returns of up to 4.75% APY while rates stay strong

Today's best rates of returns are found at FDIC-insured digital banks and online accounts paying out up to 4.50% APY with no or low minimums at Bethpage Federal Credit Union, NexBank and other trusted providers as of Wednesday, February 19, 2025.

Select APY to sort by yields, or sort by term to find the best fit with your financial goals.

Online-only banks and digital accounts may not sound as familiar as bigger names, though each is FDIC-insured or partners with an FDIC-insured bank to offer deposit accounts that are protected for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) — just like those at your neighborhood bank.

Dig deeper: How to protect your money from Fed rate cuts

A CD is a type of savings or deposit account that's offered by banks, credit unions and other financial institutions. Unlike a traditional savings account, a certificate of deposit holds your money for a fixed period of time — terms of one month to five years or longer — paying out your initial deposit and interest you've earned after the term expires or "matures."

Typical CD rates are fixed, which means you're guaranteed a rate of return that doesn't change. While you can't add to or access your cash until the CD matures, the trade-off is a safe, stable way to earn a much higher yield than you'd find with a traditional savings account.

Dig deeper: How CDs work — including 7 types for boosting your savings

The Federal Deposit Insurance Corporation tracks monthly average interest rates paid on certificates of deposit and other savings accounts. Created by Congress, the FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Here's how FDIC national deposit rates on a $10,000 minimum deposit compare to other deposit accounts between December 2024 and January 2025.

The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Dig deeper: Best low-risk investments for retirees with steady returns on your nest egg

CD rates strongly track with the key interest rate set by the Federal Reserve, the U.S.'s central bank. This Fed rate is the benchmark that affects rates on deposit accounts, loans, mortgages, credit cards and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield accounts and money market accounts.

After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate on September 18, followed by two additional quarter-point cuts after its November and December policy meetings.

At the conclusion of its first rate-setting policy meeting of the year, on January 29, 2025, the Federal Reserve announced it was leaving the federal funds target interest rate at 4.25% to 4.50%, this after cutting the Fed rate by a jumbo half point in September 2024, followed by a quarter-point cut each in November and December.

In its post-meeting statement, the Federal Reserve said it was maintaining the target range in its continuing effort to tame inflation. "The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid," the Fed said in its statement.

"In considering the extent and timing of additional adjustments," the Fed said it would "carefully assess incoming data, the evolving outlook, and the balance of risks."

Policymakers estimate just two additional cuts in 2025, down from four cuts projected after September's meeting — though the impacts of a Trump presidency leave the market uncertain as to how many times or how low an adjustment to expect, with some economists predicting the Fed will hold off on additional changes until May.

It's widely expected the Federal Reserve will hold the Fed rate at 4.25% to 4.50% after its policy meeting on March 18 and March 19, 2025. The CME FedWatch Tool, which measures market expectations for Fed fund rate changes, projects a 97.5% chance that the Fed keeps rates where they are.

Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate, with data indicating sticky inflation from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023.

Fresh jobs data released on February 7 from the Bureau of Labor Services showed unemployment falling to 4% in January, down from 4.1% in December. Employers appear to be slowing the pace of hiring, adding 143,000 jobs to payrolls — less than the 170,000 expected by economists. While the number of added roles came in significantly lower than December's strong gain of 307,000, BLS saw no discernible effect of California's wildfires or severe winter weather in January on employment.

The consumer price index released on February 12 showed a monthly increase of 0.5% in the prices average Americans pay for goods and services, up from 0.4% in December. High food, fuel and shelter costs drove the annual inflation rate to 3%, up from 2.9% in the previous month — the highest rate since June 2024. The producer price index released on February 13 reported a similar acceleration of prices producers are paid for goods and services, rising 0.4% from the previous month and 3.5% for the 12 months ending in January. Sticky inflation is likely to influence the Fed to pause cutting rates until later in the year.

“With our policy stance now significantly less restrictive than it had been and the economy remaining strong," said Federal Reserve Chair Jerome Powell in testimony before the Senate banking committee on February 11, "we do not need to be in a hurry to adjust our policy stance."

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Wednesday, March 19, 2025, at 2 p.m. ET.

Dig deeper: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances

When choosing the best certificate of deposit for your budget, compare these key factors against your specific savings or financial goals.

Dig deeper: When is it worth it to break a CD? An expert's thoughts on early withdrawals and breaking even

Dig deeper: High-yield savings account vs. CD: What to know when rates are high

A certificate of deposit isn’t the only low-risk way to earn interest on your savings. Look to these alternatives that offer safe, steady returns — with the flexibility to add to or withdraw your money without penalty.

Dig deeper: The best low-risk investments for retirees for safe, steady returns

FAQs: CDs, safety and growing your money

Learn more about how certificates of deposit work when comparing the best for your budget and financial goals. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth for the long term.

Your bank will typically notify you by mail, email or an online account alert when your CD is close to maturing. Be sure your contact information is up to date so you don’t miss important notifications. Also, set your own reminder a few weeks before the maturity date. Learn more in our guide to your options after your CD matures.

Banks charge higher interest rates on money they lend out than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money. Unlike a traditional savings account that allows for flexible movement of your money without penalty, a CD requires you to lock in your deposit over a specified period of time, returning your principal plus interest after the account matures. That lock-in period — and penalties that discourage your early withdrawal — allows a bank to better plan how long it has to make money off your deposit, and it’s typically willing to pay a little more for that reliability.

Yes. Online-only banks and digital accounts are as safe as their traditional counterparts. They are either FDIC-insured chartered banks or partner with more recognizable banks to offer deposit accounts that are protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the fintech were to fail or go out of business. Look for terms like "member FDIC," "FDIC insured" or "NCUA insured" when comparing your options. Learn more about how online banks compare to traditional banks when it comes to rates, fees and management of your money.

Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. It means that every dollar you save is working harder and growing faster toward your financial goals.

An account's APY is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage. Learn more about how you can turn time into money in our guide to how compound interest works.

A jumbo CD is a certificate of deposit that requires a minimum of $100,000 to open the account. Like regular CDs, jumbo CDs come with a fixed interest rate and term. In the past, jumbo CDs offered a way for people and businesses to safely invest money at higher rates than available with a traditional CD.

However, with the Fed holding interest rates at 23-year highs, it’s not always true that jumbo CDs have a higher interest rate than traditional CDs. Learn more about jumbo CDs and why it's wise to shop around before locking your money into one.

A no-penalty CD — also called a liquid CD — is like a traditional CD through which you lock in a deposit for a guaranteed rate of return over a stated period of time, but with the flexibility of withdrawing your money without penalty before the CD matures. This flexibility comes with trade-offs, however, including lower rates of return than a traditional CD. With rates at historic highs, a high-yield savings account may offer comparable or even higher rates than a no-penalty CD with the same flexibility. Learn more about what to watch for with no-penalty CDs.

A CD ladder is a savings strategy designed to spread out your money across multiple CDs to leverage high rates without tying up your full investment into one long-term CD. The result of CD laddering is access to a portion of your investment at regular, timed intervals. Learn how to build a CD ladder that helps you lock in today's highest rates while enjoying rolling returns — before today's best rates are gone.

A brokered CD is a certificate of deposit you buy through a brokerage firm, instead of from a bank or credit union. Like traditional CDs, you choose a term length that comes with a set interest rate. But unlike with regular CDs, you can buy them through your investment account either new or “used” from other investors. Learn more about brokered CDs — and what to consider before investing in one.

The core difference between saving and investing lies in the accessibility of your money and the risks you take with it. Saving means keeping your money in secure accounts with little to no risk of losing your principal. On the other hand, investing involves buying assets like stocks, bonds or mutual funds that can potentially earn higher returns. Learn more in our guide to saving and investing to find the best approach for your nest egg.

Editor's note: Annual percentage yields shown are as of Wednesday, February 19, 2025, at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

• Employment Situation Summary, U.S. Bureau of Labor and Statistics. Accessed February 10, 2025.

• CME FedWatch Tool, CME Group. Accessed February 19, 2025.