Want to grow your savings without taking on much risk? Right now might be a smart time to open a certificate of deposit (CD), with rates still hovering near recent highs. For example, one bank is offering a 4.60% APY on a 9-month CD, while others have rates around 4.50% for terms ranging from six to ten months.

These attractive rates may not last much longer, however. Many experts predict the Federal Reserve could begin cutting interest rates later this year, which may cause CD yields to drop quickly. Opening a CD now allows you to lock in today's higher rates before that happens.

Here are some of the best CD rates currently available.

• Newtek Bank, 9 months: 4.60% APY
• United Fidelity Bank, 6 months: 4.55% APY
• United Fidelity Bank, 10 months: 4.50% APY
• OMB, 9 months: 4.50% APY
• Presidential Bank, 7 months: 4.50% APY
• SouthEast Bank, 6 months: 4.50% APY

Featured pick: Now could be one of the last chances to lock in a yield this high before rates start to fall. LendingClub's 14-month CD currently offers 4.25% APY with just a $500 minimum deposit. Check out LendingClub's 14-month CD here.Data source: Issuing banks. Rates are accurate as of June 4, 2025.

Should you open a CD?

If you want a safe and steady way to grow your savings, now might be a good time to consider opening a CD. With the Federal Reserve expected to cut interest rates later this year, some banks have already started lowering their top CD offers. Locking in one of today's higher APYs could help you secure reliable returns before rates drop any further.

CDs come with low risk, steady growth, and FDIC insurance that protects up to $250,000 per person, per bank. They're a solid choice if you're looking for stability and don't need immediate access to your money. But if you're comfortable with more risk and are aiming for higher long-term gains, the stock market might offer more upside.

How a $10,000 CD could earn you nearly $500

The amount you earn from a CD depends on three key things: the APY, how much you deposit, and how long you leave the money in.

Take this example: if you put $10,000 into a 14-month CD with a 4.25% APY, you'd earn around $498 in interest by the time it matures -- all with very little risk to your initial deposit.

That's a big difference compared to most traditional savings accounts, where rates tend to be lower and can change at any time. Locking in a top CD rate today, like LendingClub's 14-month CD, can help you maximize your returns before rates drop. See LendingClub's 14-month CD details here.

How to open a certificate of deposit

Opening a CD is simple and can be done in just a few easy steps:

1. Compare rates and terms. Shop around at different banks to find the best APY and term length that match your savings goals. Online banks often offer better rates than traditional ones.
2. Choose your deposit amount. Decide how much you want to invest, keeping in mind that early withdrawals usually come with penalties, so pick an amount you can leave untouched for the full term.
3. Open your account. You can open a CD online or in person at a bank branch. Be prepared to provide personal information, such as your ID and banking details.
4. Fund your CD. Transfer funds from your checking or savings account into the CD. Once funded, your interest rate and term are locked in.
5. Track your maturity date. Make a note of when your CD matures so you can decide whether to withdraw your money or renew it when the term ends.

Remember, each CD allows only one deposit. Plan your amount wisely. When you're ready, click here to explore the best CD rates and open a high-yield CD today.

HYSAs vs. CDs: Earn a top-tier APY without locking up your cash

Want solid returns without tying up your money? A high-yield savings account might be a better option than a CD. Here's why HYSAs offer more flexibility:

• No commitment required -- You can deposit or withdraw funds anytime with no early withdrawal penalties.
• Quick access -- Transfers between accounts are fast and easy when you need your money.
• Set it and forget it -- Just park your cash and let it grow. There's no need to worry about maturity dates like with CDs.
• Competitive rates -- HYSA rates can fluctuate, but many currently match or beat short-term CD offers.

Bottom line: you can earn a strong APY without giving up access to your savings.

One standout right now is SoFi Checking and Savings (Member FDIC). This top-rated account offers up to 3.80% annual percentage yield (APY) on savings with qualifying direct deposits. Even better: New customers can earn up to a $300 bonus with qualifying direct deposits! It's an easy way to boost your savings without locking up your cash. Click here to learn more.

• Sources

  • https://www.newtekbank.com/certificate-of-deposit/
  • https://www.unitedfidelity.com/high-yield-certificates-of-deposit/
  • https://www.ombbank.com/personal-banking/personal-savings/certificates-of-deposit/9-month-cd-special
  • https://www.presidential.com/personal/banking/cds
  • https://www.southeastbank.com/personal-banking/bank-accounts/bank-cds/

FAQs

• Can I withdraw money from a CD early?

  Yes, but it usually comes with a penalty. If you take money out before the CD matures, you'll likely lose some or all of the interest you've earned -- sometimes even a bit of your original deposit, depending on the bank's rules.

• What happens when a CD matures?

  When a CD reaches its maturity date, you'll have a short window -- usually seven to 10 days -- to withdraw your money or move it into a new CD. If you don't take action, the bank may automatically roll it into a new CD, often at a different rate or term.

• What's the biggest downside of a CD?

  The biggest downside of a certificate of deposit is the lack of liquidity. When you invest in a CD, your money is locked in for a fixed term, and withdrawing it early can result in loss of interest. This means you have less flexibility to access your funds if you need them before the CD matures.