Top CD Rates in January 2025: Earn Up to 5.77% APY with Jumbo Deposits

As 2024 begins, Certificate of Deposit (CD) rates have experienced slight decreases, but excellent opportunities remain—especially for those with jumbo deposits. While the highest rates for smaller deposits have softened, competitive yields are still available across multiple terms, from 3 months up to 18 months.

The previous leader offering 5.79% APY has stepped down, making INOVA Federal Credit Union the new top provider with a 5.75% APY for an 8-month CD. The best 1-year CD rate also dipped slightly from 5.70% to 5.66% APY, now offered by CIBC Agility.

For investors able to commit at least $50,000, jumbo CDs present the highest rates nationwide, with a top APY of 5.77% available for both 6- and 12-month terms. Additionally, jumbo 18-month CDs have improved, now offering 5.65% APY from Hughes Federal Credit Union.

Highlights to Note

• The leading overall CD rate has decreased marginally from 5.79% to 5.75%, available on an 8-month term.
• Best 1-year CD yields dropped to 5.66% APY from last week’s 5.70%.
• Current CD rates remain significantly higher than historical averages, despite being below October 2023’s peak of 6.50%.
• Jumbo CDs (minimum $50,000 deposit) offer the highest yields, up to 5.77% APY.
• Interest rates are expected to decline throughout 2024, likely leading to lower CD rates.

Below, explore featured CD rates from trusted financial institutions, followed by a comprehensive ranking of the best nationwide CDs.

In recent months, the number of CDs offering at least 5.75% APY peaked at 18 in early November but has since narrowed to just one. However, eight additional CDs still provide rates of 5.65% or higher.

Competitive rates are most common in terms ranging from 3 to 18 months, though longer terms also maintain strong yields. For example, 2-year CDs offer 5.39% APY, 3-year CDs yield 5.23%, and 4- to 5-year CDs lock in rates around 5.00% APY. Locking in these rates for longer durations could be advantageous given the anticipated decline in interest rates over the coming years.

Investor Insight

A recent survey showed 28% of investors are increasing their CD holdings, making CDs the second most favored investment after money market funds. Furthermore, 11% of investors would open a CD if they had an additional $10,000 to invest, ranking third behind stocks and ETFs.

For jumbo depositors, My eBanc offers the highest jumbo CD rate at 5.77% APY for 6- or 12-month terms. Hughes Federal Credit Union raised its 18-month jumbo CD rate to 5.65% APY, requiring a minimum deposit of $99,000.

Important Consideration

Jumbo CDs do not always guarantee higher returns than standard CDs. In five out of eight terms reviewed, standard CDs offer comparable or better yields. It’s prudent to compare both before deciding.

Outlook for CD Rates in 2024

The Federal Reserve held interest rates steady at a 22-year high in December, marking the third consecutive pause after aggressive hikes in 2022 and moderate increases in 2023. This environment has fostered historically attractive yields for CDs, high-yield savings, and money market accounts.

With inflation cooling and Fed officials signaling potential rate cuts in 2024, CD rates are likely to gradually decline. The Fed’s median forecast anticipates three rate cuts totaling 0.75% during the year, which will influence deposit rates accordingly.

While predicting exact Fed moves remains uncertain, current trends suggest CD rates will ease down from their recent highs.

Additional Top Savings Options for May 2025

• Best CD Rates: Up to 4.50% APY
• Best High-Yield Savings Accounts: Two offers at 5.00% APY
• Best Money Market Accounts: Up to 4.40% APY

How We Identify the Best CD Rates

Our daily rankings analyze rates from over 200 federally insured banks and credit unions nationwide. To qualify, institutions must be FDIC or NCUA insured, offer CDs with minimum deposits no greater than $25,000, and be accessible in at least 40 states. We exclude credit unions requiring donations over $40 for membership. Our methodology ensures you find the highest available rates, which can be significantly above national averages.

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