Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS. For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.

Your CD is safe at either an FDIC-insured bank or an NCUSIF-insured credit union, as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government. Just make sure you’re not exceeding the insurance limits. For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.

Are there fees associated with CDs?

CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.

What is considered a good CD rate?

A good CD rate depends on a few factors, but the true answer depends on your personal financial situation. If you need to access your money in a year, for example, your best CD options will be those with a one-year term or less. If you’re able to lock up your money for longer, you may be able to achieve a higher yield with a longer-term CD. In general, longer terms may pay better yields. Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time. Compare CD rates to the national average to make sure you’re getting a competitive return. For example, the national average APY for 1-year CDs is 1.75 percent as of January 18, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.52 percent.

Is an online bank the best choice for a CD?

Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.

How long can you leave money in a CD?

You can keep your money in a CD and let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.

Do CDs have beneficiaries?

Banks give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take. If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.

Can you lose money on a CD?

As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.

Best CD rates of January 2025 (Up to 4.65%)

Written by

Matthew Goldberg

Edited by

Marc Wojno, MBA

Reviewed by

Greg McBride, CFA

Rates updated between Jan. 11 and Jan. 17 | Content updated Jan. 13

At Bankrate we strive to help you make smarter financial decisions. Though our partners compensate us from links on this page, we maintain editorial integrity, and partners don't influence our product evaluations. Here's how we make money and here is our advertiser disclosure.

Opening a certificate of deposit (CD) allows you to lock in an attractive fixed rate and earn higher returns compared to traditional savings accounts, while providing guaranteed growth for a set period of time. Currently, the best CD rates still earn above 4 percent APY. The top rate tracked by Bankrate is offered by Bask Bank for a 3-month term, and is just under three times higher than the national average of 1.75 percent on a one-year CD.

Bankrate's picks for top CD rates today

Popular Direct — 3 months - 5 years, 4.10% – 4.55% APY, $10,000 minimum deposit
Quontic Bank — 3 months - 5 years, 3.00% – 4.50% APY, $500 minimum deposit
America First Credit Union — 3 months - 5 years, 4.10% – 4.40% APY, $500 minimum deposit
Synchrony Bank — 3 months - 5 years, 0.25% – 4.35% APY, no minimum deposit
Vio Bank — 6 months - 5 years, 2.75% – 4.30% APY, $500 minimum deposit
Marcus by Goldman Sachs — 6 months - 5 years, 3.75% – 4.30% APY, $500 minimum deposit
Barclays Bank — 3 months - 5 years, 0.10% – 4.10% APY, no minimum deposit
Sallie Mae Bank — 6 months - 5 years, 3.40% – 4.10% APY, $2,500 minimum deposit
Capital One — 6 months - 5 years, 3.50% – 4.00% APY, no minimum deposit
Citizens Access — 1 year - 5 years, 2.75% – 4.00% APY, $5,000 minimum deposit

Current CD trends

Bankrate Partner average

4.09% APY

National average

1.75% APY

The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 01/18/2025. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.

CD rates remain high, but are projected to move lower.

The Fed is predicted to continue cutting rates in 2025. Read more from Bankrate's experts in our CD rates forecast.

PERSONALIZE YOUR SEARCH

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Product type

Best CD rates from top banks for January 2025

Note: Annual percentage yields (APYs) shown were updated between Jan. 11 and Jan. 17. All other information is current as of Jan. 13. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its editorial listings.

Read review

Popular Direct

4.0 Bankrate CD score

Bankrate CD rating = 4/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

4.10% – 4.55%
Min. deposit to open

$10,000
Term

3 months - 5 years

Why Popular Direct?

Popular Direct is an online bank and a subsidiary of Popular Inc., a more than 130-year-old financial services company. Popular Direct was previously known as Banco Popular North America. Popular Direct offers CDs in eight terms ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.

Pros

Popular Direct consistently offers competitive rates across their CDs and savings accounts.

Cons

Popular Direct has a $10,000 minimum deposit to open. They also don't offer specialty CDs like bump-up or no-penalty CDs.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Popular Direct

APY

APY last updated between 1/11 and 1/17.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.51% APY	$10,000
6 months	4.55% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.25% APY	$10,000
2 years	4.20% APY	$10,000
3 years	4.15% APY	$10,000
4 years	4.15% APY	$10,000
5 years	4.10% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Popular Direct APY APY last updated between 1/11 and 1/17. APY last updated between 1/11 and 1/17	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/07/2025	4.10%	1.41%
12/03/2024	4.25%	1.42%
11/05/2024	3.35%	1.42%
10/22/2024	3.45%	1.42%
10/01/2024	3.55%	1.42%
09/24/2024	3.65%	1.43%
09/17/2024	3.85%	1.43%
09/03/2024	3.95%	1.43%
08/20/2024	3.95%	1.44%
08/13/2024	4.00%	1.44%
08/06/2024	4.30%	1.44%
07/02/2024	4.30%	1.42%
06/04/2024	4.30%	1.43%
04/02/2024	4.30%	1.42%
03/26/2024	4.30%	1.43%
03/19/2024	4.35%	1.43%
03/12/2024	4.45%	1.43%
02/06/2024	4.45%	1.42%
01/30/2024	4.45%	1.43%
01/23/2024	4.35%	1.43%

Read review

Quontic Bank

4.0 Bankrate CD score

Bankrate CD rating = 4/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

3.00% – 4.50%
Min. deposit to open

$500
Term

3 months - 5 years

Why Quontic Bank?

Quontic Bank offers six terms of CDs, ranging from three months to five years, that require $500 to open. The rates for all six terms are very competitive.

Pros

Quontic pays competitive rates on the five CD terms it offers.
Only $500 is needed to open a CD.
Cons

Some banks have lower minimum deposit requirements.
Quontic Bank’s early withdrawal penalties are higher than those of some other banks.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Quontic Bank

APY

APY last updated between 1/11 and 1/17.

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	4.51% APY	$10,000
6 months	4.55% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.25% APY	$10,000
2 years	4.20% APY	$10,000
3 years	4.15% APY	$10,000
4 years	4.15% APY	$10,000
5 years	4.10% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Quontic Bank APY APY last updated between 1/11 and 1/17. APY last updated between 1/11 and 1/17	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/07/2025	3.00%	1.41%
10/01/2024	3.00%	1.42%
09/24/2024	3.00%	1.43%
09/03/2024	3.50%	1.43%
08/27/2024	3.50%	1.44%
08/06/2024	4.30%	1.44%
07/02/2024	4.30%	1.42%
06/04/2024	4.30%	1.43%
04/02/2024	4.30%	1.42%
03/12/2024	4.30%	1.43%
02/06/2024	4.30%	1.42%
01/23/2024	4.30%	1.43%

Term	APY	Min. deposit
3 months	4.50% APY	$500
6 months	4.25% APY	$500
1 year	4.00% APY	$500
2 years	3.35% APY	$500
3 years	3.25% APY	$500
5 years	3.00% APY	$500

Read review

America First Credit Union

5.0 Bankrate CD score

Bankrate CD rating = 5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

4.10% – 4.40%
Min. deposit to open

$500
Term

3 months - 5 years

Why America First Credit Union?

America First Credit Union offers a wide range of CD terms between three and 60 months, and all earn rates that are highly competitive. Also offered are specialty CDs such as a bump-rate CD and a flexible CD. All CDs require a manageable minimum opening deposit.

Pros

CD rates from America First are highly competitive. Specialty CDs are available, including a bump-up option. Both the standard and specialty CDs require low minimum deposits.
Cons

Bump rates may only be adjusted once per term.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

America First Credit Union

APY

APY last updated between 1/11 and 1/17.

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	4.51% APY	$10,000
6 months	4.55% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.25% APY	$10,000
2 years	4.20% APY	$10,000
3 years	4.15% APY	$10,000
4 years	4.15% APY	$10,000
5 years	4.10% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	America First Credit Union APY APY last updated between 1/11 and 1/17. APY last updated between 1/11 and 1/17	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/07/2025	4.25%	1.41%
11/19/2024	4.25%	1.42%
10/29/2024	3.90%	1.42%
10/01/2024	3.85%	1.42%
09/24/2024	3.85%	1.43%
09/17/2024	3.95%	1.43%
09/10/2024	4.00%	1.43%
09/03/2024	4.10%	1.43%
08/27/2024	4.10%	1.44%
08/06/2024	4.20%	1.44%
07/02/2024	4.20%	1.42%
06/04/2024	4.20%	1.43%
04/02/2024	4.20%	1.42%
03/12/2024	4.20%	1.43%
02/06/2024	4.20%	1.42%
01/23/2024	4.20%	1.43%

Term	APY	Min. deposit
3 months	4.40% APY	$500
6 months	4.40% APY	$500
9 months	4.40% APY	$500
1 year	4.35% APY	$500
18 months	4.10% APY	$500
2 years	4.15% APY	$500
30 months	4.15% APY	$500
3 years	4.15% APY	$500
4 years	4.20% APY	$500
5 years	4.25% APY	$500

Read review

Synchrony Bank

4.9 Bankrate CD score

Bankrate CD rating = 4.9/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

0.25% – 4.35%
Min. deposit to open

$0
Term

3 months - 5 years

Why Synchrony Bank?

Synchrony Bank offers many regular CDs ranging from three months to five years. It also added a no-penalty CD and a bump-up CD earlier this year. Synchrony Bank also offers IRA CDs.

Pros

Synchrony Bank offers many terms of CDs. It offers a competitive yield, and it doesn’t require a minimum opening deposit.
Cons

Partial withdrawals on the no-penalty CD are not allowed.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Synchrony Bank

APY

APY last updated between 1/11 and 1/17.

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	4.51% APY	$10,000
6 months	4.55% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.25% APY	$10,000
2 years	4.20% APY	$10,000
3 years	4.15% APY	$10,000
4 years	4.15% APY	$10,000
5 years	4.10% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Synchrony Bank APY APY last updated between 1/11 and 1/17. APY last updated between 1/11 and 1/17	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/16/2025	4.15%	1.41%
01/07/2025	4.00%	1.41%
10/01/2024	4.00%	1.42%
09/03/2024	4.00%	1.43%
08/02/2024	4.00%	1.44%
07/02/2024	4.00%	1.42%
06/04/2024	4.00%	1.43%
04/02/2024	4.00%	1.42%
03/12/2024	4.00%	1.43%
02/06/2024	4.00%	1.42%
01/22/2024	4.00%	1.43%

Term	APY	Min. deposit
3 months	0.25% APY	$0
6 months	3.70% APY	$0
9 months	4.00% APY	$0
1 year	4.00% APY	$0
13 months	4.35% APY	$0
18 months	3.80% APY	$0
2 years	3.50% APY	$0
3 years	4.00% APY	$0
4 years	3.50% APY	$0
5 years	4.15% APY	$0

Read review

Vio Bank

4.1 Bankrate CD score

Bankrate CD rating = 4.1/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

2.75% – 4.30%
Min. deposit to open

$500
Term

6 months - 5 years

Why Vio Bank?

Vio Bank offers traditional CDs with terms ranging from six months to 10 years, an extensive variety compared to some other banks. The minimum deposit for each account is relatively low at $500. CDs automatically renew once they mature following a 10 day grace period. Yields are competitive for all CDs, but Vio’s highest APYs are for CDs with terms of three years or less.

Pros

There is a wide variety of terms available.
Some banks have much higher minimum deposit requirements.
CD rates are highly competitive.
Cons

Early withdrawals come with a high penalty.
There are no special types of CDs or promotions available.
Some online banks offer higher CD rates.

Best CD rates of January 2025 (Up to 4.65%)

Current CD trends Caret Up Icon Caret Down Icon

Best CD rates from top banks for January 2025

Popular Direct

Annual percentage yield

Min. deposit to open

Term

Why Popular Direct?

Pros and cons

Rate history for Popular Direct's CD accounts

Current Popular Direct CD Rates

Quontic Bank

Annual percentage yield

Min. deposit to open

Term

Why Quontic Bank?

Pros and cons

Rate history for Quontic Bank's CD accounts

Current Quontic Bank CD Rates

America First Credit Union

Annual percentage yield

Min. deposit to open

Term

Why America First Credit Union?

Pros and cons

Rate history for America First Credit Union's CD accounts

Current America First Credit Union CD Rates

Synchrony Bank

Annual percentage yield

Min. deposit to open

Term

Why Synchrony Bank?

Pros and cons

Rate history for Synchrony Bank's CD accounts

Current Synchrony Bank CD Rates

Vio Bank

Annual percentage yield

Min. deposit to open

Term

Why Vio Bank?

Pros and cons

Current CD trends