If you're looking to save some cash, now's a good time to lock in a guaranteed, inflation-beating return before savings rates potentially dip.
Why's that? The Federal Reserve is set to meet at the end of January to decide whether to pause or cut rates again — and while markets currently lean toward a pause, the decision isn't set in stone. After easing rates three times in 2025, the Fed faces a tricky balancing act amid mixed economic signals. As a result, many online banks and credit unions, which typically offer the highest-yield CDs, have lowered their rates as well. Still, these CDs often offer significantly better returns than regular savings accounts.
A look into CD rates
CD rates generally mimic the fed funds rate, going down when the Fed lowers rates. This is because banks can borrow for less, so they no longer need to use high returns to incentivize savers to make deposits. While savers early last year could easily find a 1-year CD offering 5% APY or even higher, the best 1-year CD rates now hover around 4% APY.
A 4% savings yield is still a solid return and more than double the national average. Because CD rates are fixed, opening one now locks you into a guaranteed rate, so when the next rate cut hits your current rate is not affected.
For instance, OMB Bank is offering 4.25% APY on a 5-month CD — not a long term if you're worried about keeping your money locked up. There's a $1,000 minimum deposit.
OMB Bank CD
Annual Percentage Yield (APY)
From 0.20% to 4.36% APY
Terms
From 3 months to 6 years
Minimum deposit
$1000
Monthly fee
None
Early withdrawal penalty fee
If you withdraw the balance entire principal amount from your CD account prior to maturity, you'll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Terms apply.
Pros
- Range of fixed CD terms
- Offers limited-time CD specials
- Offers mobile banking app
- No set up or maintenance fees
Cons
- $1000 minimum deposit
- You can't access your money before your CD term ends
- Lower rates on most CD term options
- Early withdrawal penalty fees apply
United Fidelity Bank has CD rates ranging from 4.05% APY to 4.20% APY, with terms of six months to five years, if you're looking for something longer. The minimum deposit is also $1,000.
United Fidelity Bank CD
Annual Percentage Yield (APY)
From 4.20% to 4.35% APY
Terms
From 6 months to 5 years
Minimum deposit
$1000
Monthly fee
None
Early withdrawal penalty fee
If you withdraw the balance entire principal amount from your CD account prior to maturity, you'll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- 10-Day Grace Period: At maturity, customers have 10 days to make additions, withdrawals or other changes without incurring a penalty.
Cons
- $1000 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
For a lower minimum ask, consider LendingClub, which only requires a $500 deposit. Its top CD rate is currently 4.10% APY on an 8-month term.
LendingClub CDs
Annual Percentage Yield (APY)
From 3.40% to 4.10% APY
Terms
From 6 months to 5 years
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
Early withdrawal penalty applies. For terms 1 year or less, the penalty is 90 days simple interest. For terms greater than 1 year, the penalty is 180 days simple interest.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
- No physical branch locations
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
4.00% (with monthly deposits of $250 or more), or 3.00%
None
None
From 3.40% to 4.10% APY
From 6 months to 5 years
$500
How to choose the best CD for you
When comparing CDs, it's obvious that a high APY is key but, really, the best CD for you should have a term length you're comfortable with, since your funds ideally remain untouched until the term is up. Any withdrawals prior usually have a penalty fee.
If you want a savings account with more flexibility to accessing your funds, a high-yield savings account may be the better move. Unlike a CD, a high-yield savings account allows you to tap into your funds at any time (though there are usually monthly withdrawal limits) and APYs can be just as high. High-yield savings account rates are variable, not fixed, though, so they can go up or down at any time.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings and banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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