If you've been thinking about putting some cash into a certificate of deposit (CD), now might be a good time to act. Rates are still hovering near recent highs, with one bank currently offering 4.60% APY on a 9-month term. Several others are close behind, with rates around 4.50% for terms ranging from six to 10 months.

That said, these attractive rates might not be around much longer. Many analysts expect the Federal Reserve to start lowering interest rates sometime later this year, which could cause CD yields to drop fairly quickly. Locking in a CD today gives you the chance to secure one of the better rates before they start to fall.

Here's a look at some of the best CD rates available right now.

• 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 8, 2025.

Should you open a certificate of deposit?

If you want a secure way to grow your savings, this could be a good moment to consider a certificate of deposit. With the Federal Reserve expected to cut interest rates later this year, some banks have already started lowering their best CD rates. Opening a CD now lets you lock in one of today's higher APYs and secure a steady return before rates potentially move lower.

CDs offer steady growth with very little risk, and your money is protected by FDIC insurance up to $250,000 per person, per bank. They're a good fit if you want stability and don't need access to your funds right away. But if you're comfortable taking on more risk in hopes of earning higher long-term returns, the stock market might be a better option.

How $10,000 in a CD can grow your savings by nearly $500

How much money you make from a CD mostly comes down to the interest rate, how much you put in, and how long you leave it there.

For example, if you deposit $10,000 into a 14-month CD paying 4.25% APY, you'd pocket roughly $498 in interest by the time the CD matures -- and your original deposit stays safe the whole time.

That's a noticeable boost compared to most regular savings accounts, where rates are usually much lower and can change at any moment. 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.

CDs vs. high-yield savings accounts: Get a great APY and keep your money flexible

Looking for strong returns without locking your money away? A high-yield savings account could be a better fit than a CD. Here's why HYSAs offer more freedom:

• No lock-in period -- Add or withdraw funds whenever you want, with no early withdrawal penalties.
• Easy access -- Move money between accounts quickly whenever you need it.
• Low maintenance -- Deposit your money and let it grow, no need to track maturity dates like with CDs.
• Competitive rates -- While rates can change, many HYSAs currently offer APYs that rival short-term CDs.

The bottom line: you can enjoy high returns while still having full 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

• 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.

• Are CDs safe?

  Yes, certificates of deposit are considered very safe. CDs offered by FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, which means your principal is secure even if the bank or credit union fails.

• 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.