Today’s CD rates remain high due to the Federal Reserve’s interest rate cuts in 2024. The highest CD rate is 5.5% APY, offered by Gainbridge® on a 5-year CD with a $1000 minimum deposit. Online banks and credit unions typically offer more competitive rates than traditional banks.

The national average interest rate for a 1-year CD is 1.77%, but today’s rates are some of the highest in two decades. The Federal Reserve’s efforts to combat inflation have kept rates elevated. It’s important to choose a CD with a high APY and term length that aligns with your financial goals.

To find the best CD rates, shop around and compare options from various financial institutions. Online banks often offer the most competitive rates due to lower overhead costs. Be mindful of minimum deposit requirements and review account terms for early withdrawal penalties and auto-renewal policies.

Read more at Yahoo Finance: Best CD rates today, August 18, 2025 (Lock in up to 5.5% APY)