Worry about a recession? CDs can help protect your money. Today’s CD rate, April 1, 2025
- Today’s top CDs get 4.50% APY.
- When you turn on the CD, your rates are locked, so your income will never drop.
- CDs are a way to retain cash reserves when the recession approaches.
Fear of a recession is rising. As prices are still rising and consumer confidence falls, many Americans want to know how to survive the looming financial storm. One thing experts recommend is to increase your cash reserves.
APY or annual rate of return on a deposit account tends to fall into a recession, which means you make less interest on the money you reserve. You should have a healthy emergency fund in your savings account, but once you have additional cash established, transferring the extra cash into the deposit certificate can help you reduce interest rate drops. Your CD rate is fixed when you open an account, so your return will remain the same even if the APY drops after this. This makes them perfect for money you specify future goals, such as buying a home or funding money for an upcoming retirement.
Tax transactions this week
The transaction was selected by the CNET Group business team and may not be related to this article.
“The main benefit of investing in CDs in today’s economy is that guaranteed, risk-free returns can be confirmed at a time of increasing uncertainty and volatility in the market.”
Today’s best CDs offer up to 4.50% APY – more than three times more than three times more. Here you can find the highest CD price available now and how much CD rates you can earn by depositing different amounts.
The best CD prices today
| semester | The highest APY* | bank | Estimated earnings from a deposit of $1,000 | Estimated earnings from a $5,000 deposit | Estimated earnings from a $10,000 deposit |
|---|---|---|---|---|---|
| 6 months | 4.50% | Community-wide federal credit union | $22.25 | $111.26 | $222.52 |
| 1 year | 4.40% | Bask Bank; Community-wide federal credit unions | $44.00 | $220.00 | $440.00 |
| 3 years | 4.15% | The first credit union in the United States | $129.74 | $648.69 | $1,297.38 |
| 5 years | 4.20% | The first credit union in the United States | $228.40 | $1,141.98 | $2,283.97 |
Experts recommend comparing rates to get the best APY before opening a CD account. Enter your information below to get the best interest rates for CNET partners.
How CDs protect your money amid recession
CDs offer many benefits, including:
- Guaranteed return: Unlike savings accounts, when you open the CD, your APY is locked, in which case the interest rate may vary at any time. The fixed interest rate on CDs makes it easy to calculate how much interest you will earn over time and protect your funds from falling interest rates once the account is opened.
- Competition rate: Traditional savings accounts offer minimal APY, sometimes as low as 0.01%. Today’s highest CD has an APY of 4.50% or more, which can change your interest income and help your funds keep up with inflation.
- Low risk: CDs held by FDIC Insurance Bank or NCUA-insured credit unions are protected by $250,000 per store, agency, and account category. This means that if your bank fails, your money is safe. Other investments (such as stocks) may produce higher returns in the long run, but they also volatility, which means you may lose money at any time.
- Access barriers: You can withdraw funds from your savings account at any time for free (as long as you mind any monthly withdrawal restrictions). However, if you take the money out before you file that semester, many CDs will charge early withdrawal fines. This can help you resist the urge to immerse your money before you need it.
CD & Savings Account: Which one should you choose?
CDs have many benefits, but they are not always the best choice. “It really depends on your goals,” said Taylor Kovar, certified financial planner and CEO of 11 Financial.
To determine if CD is the right choice for your money, ask yourself the following questions:
- When do you need your funds? “Before entering a CD, consumers should consider their liquidity needs,” said Krisstin Petersmarck, financial advisor at New Horizon Retirement Solutions. “CD locks your money in a set period and can be fined if you need to get those funds early. So it’s important to make sure the money you invest in CD is something you don’t need to need right away.”
- How much do you have to deposit? Some CDs require a minimum deposit to open an account, usually from $500 to $1,000. If you can’t find an attractive APY account you want to deposit the amount, try checking out a low yield savings account that has low or no minimum deposit.
- Do you want to increase your money over time? Most CDs (although not all) only allow one-time deposits. If you want to regularly add money to your savings over time, consider a high yield savings account.
- Do you need some discipline? If you are worried that you will be tempted to take advantage of your savings before you need it, the CD will withdraw the penalty ahead of time, which can help you pause.
You can earn up to 5% APY in today’s best high yield savings accounts. Check Maximum savings rate Now.
Methodology
CNET reviews CD rates based on the latest APY information from the issuer’s website. We evaluate CD rates for over 50 banks, credit unions and financial companies. We evaluate CDs based on APY, product products, accessibility and customer service.
The current banks included in CNET’s weekly CD averages include Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank and Connexus Credit Union.
*As of March 31, 2025, according to banks we tracked on CNET. The gain is based on APY and assumes interest is more complex every year.
