What&#39;s a good CD interest rate in 2025?

One of the least common ones is.

is now, in 2025.

That doesn't mean these accounts aren't a smart way to grow your money, especially before more interest rate cuts are implemented. To get started, it's best to understand the details about the rates involved.

What can I expect a typical CD interest rate to be in the year 2025?

So, technically, any CD rate above that level would currently be considered good.

Online banks save money by not having branch locations to maintain. As a result, they can offer higher interest rates on CDs to their customers. It's a good time to open an online CD right now and take advantage of the high rates before the potential interest rates go lower with future Federal Reserve rate cuts.

That's more than three times the average, something you can likely accomplish by opening an account online with your bank, rather than visiting your local branch face-to-face.

Those windows of opportunity have largely disappeared, so securing a fixed, high-interest CD for an extended period is now more crucial than ever.

What is a typical interest rate offered by high-yield savings accounts toward the end of 2025?

You might find a better option. Current rates on regular savings accounts are around 0.42%, but you could potentially get a much higher rate of up to 4.75% with a high-yield savings account.

High-yield savings accounts have some benefits, but one major difference is that their interest rates are not fixed, unlike CDs. This can be great news if interest rates rise, but might be a drawback if rates drop again later this year. So, consider how these features compare to what you can find with a CD to make the best choice for you.

The bottom line

If you prefer a savings account, a high-yield one can earn comparable returns. However, it's best not to leave your money sitting in a basic account. Rates for high-yield CDs and savings accounts are unlikely to stay this high for long, so it's wise to act while you still can.