Most investors expect the Federal Reserve to hold interest rates steady when it meets in July. However, rate cuts are still on the table in 2025.
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If the Fed does cut rates, or even signals rate cuts for later this year, banks could begin lowering CD rates in advance. In fact, some already have.
That means now is the time to consider locking in your return — as high as 4.25% APY on the top CDs from our list — before rates drop even further.
What to know before opening a CD
A certificate of deposit (CD) is a type of savings account that holds your money for a set period, usually anywhere from a few months to five years.
In return, you get a fixed interest rate that won’t change. Products like high-yield savings accounts are offering comparable returns, but those rates can change at any time.
Here’s your quick CD how-to:
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Choose your term: Match it with your goals. Shorter terms (like 6-12 months) give you quicker access to your cash, and they currently offer the highest rates. Longer terms give you a guaranteed rate of return for a longer period of time, which makes them a good hedge against near-term rate cuts.
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Shop for the best rate: Online banks often offer higher APYs than traditional ones.
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Fund your account: You can usually open a CD via bank transfer. Most require a minimum deposit of $500 or more.
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Don’t touch your money: Most CDs charge penalties for early withdrawals.
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Plan your next move: Once your CD matures, you can roll your funds into a new CD at the same bank or move the money elsewhere.
If you’re worried about tying up all your money, you can also try a CD ladder — a strategy that spreads your savings across different term lengths so a portion becomes available at regular intervals.
Want to start earning guaranteed returns now? Check out our curated list of the top CD rates available today.
Who should consider a CD right now?
CDs are a good fit for you if:
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You have savings you won’t need soon
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You want a guaranteed return, rather than maximum long-term growth
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You’re saving for a short- to mid-term goal
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You already have an emergency fund in place
If you think rates are headed down — and there’s good reason to believe so — then now is the time to lock in a CD.
Don’t wait until rates drop further
Even if the Fed doesn’t cut rates at its next meeting in late July, the window to lock in high CD yields could close soon.
Banks tend to move quickly when they expect a shift, and early signs are already on the horizon. The stability of CDs is a great way to protect your savings and give you peace of mind if you’re worried about falling rates.
Ready to secure your APY? Open a top-paying CD today and lock in your rate before they fall.
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