Don’t Miss These High-Yield CDs Offering Over 4.7% APY: Act Before Rates Fall

If you’ve been looking for a way to put your money to work for you in 2025, certificates of deposit (CDs) might be your best option. Despite the Federal Reserve cutting interest rates, high-yield CD accounts remain a popular option. Keep reading to find out more about how you can take advantage of some of the top CD rates today.

Why CDs Still Make Sense in 2025

The Federal Reserve has reduced interest rates by a full percentage point over the last 12 months. Still, CD rates remain near record highs. This creates a prime opportunity for investors who want to secure strong returns before interest rates drop even further.

Today, the standout option on the market is a three-month CD from Community Bank & Trust, which offers an impressive 4.71% APY. These high-yield CD accounts are available with a minimum deposit of only $500. For investors looking for short-term liquidity with meaningful yield, this is a compelling option.

If your investment strategy is generally risk-averse or you just want a quick infusion of cash, these top CD rates today provide you with a great option.

A Look Back: CD Rates From 2010 to 2025

In order to better understand the best CD interest rates in 2025, let’s take a look back at how rates have changed over the last 15 years. Following the 2008 financial crisis, CD rates remained historically low, with rates hovering below 0.50%. The Fed was trying to slash rates to support the economy, but these decisions made things much harder for investors. By the mid-2010s, gradual economic recovery caused rates to improve slightly, but most long-term CDs still barely crossed 0.60%.

Things took a major turn in 2022, as the Fed’s aggressive approach to battling inflation pushed interest rates into the 5.30% range. Even though the Fed has pivoted and begun easing rates again, many CDs are still offering competitive APYs between 4.50% and 4.70%, which is a historical range for savers.

How Certificates of Deposit Work

If you’re new to the world of investing, you may not be familiar with what CDs are and how they work, even if you’ve heard others discuss them before. CDs function as time-locked savings accounts that offer a fixed interest rate. When you open a CD through your local bank or other financial institution, you agree to keep your money in the account for the length of time specified by the institution. These time ranges can last anywhere from a few months to several years. For your commitment, the bank agrees to pay you a fixed interest rate.

The most appealing aspect of investing in fixed-rate CDs is that market conditions don’t impact them. For instance, today’s CDs that are offering 4.71% APY aren’t going to suddenly offer less than that if the Fed drops interest rates to 3.5% in the next year. You can rest assured that you’re going to enjoy the 4.71% APY, no matter what market conditions look like.

Your money is insured by the FDIC or NCUA up to $250,000, which means you’re protected on all sides. The only potential issue that you might face is a penalty for taking your money out of the account early. If you do withdraw your funds early, you may forfeit all or some of the interest generated by the CD.

Pros and Cons of Opening a CD

Like all investment options, CDs come with a unique list of pros and cons. Whether you invest in a CD or choose to put your money to work for you elsewhere depends on a variety of factors, including your financial goals, investment strategy, and current financial status.

The most notable benefit of investing in a CD is the guaranteed interest rate. You can know exactly how much the account will be worth when it reaches maturity. This allows you to make a concrete plan for the future, which isn’t possible when you invest in stocks, crypto, and other alternative options. Since the funds are locked away behind penalties for accessing them, you can eliminate the temptation to dip into your money early.

The predictability of CDs makes them appealing to retirees, new savers, and anyone who wants to put money away for a future expense. Still, CDs aren’t the perfect option for everyone. Most notably, the penalties associated with early withdrawals scare many savers off. If you find yourself in a tough financial spot and need access to your money, you’ll have to decide between forfeiting your interest and finding an alternative way to get your money. While interest rates are currently up, CDs generally don’t offer the same long-term growth that you can find in real estate, stocks, or ETFs.

Finally, you need to monitor your CD, as many banks have automatic renewals. This means that your CD may roll into a new account with less favorable terms if you don’t withdraw the money once it reaches maturity.

Making the Right Choice

Is a CD right for you? It’s impossible to answer that question without considering a wide array of factors. Since most financial institutions require at least $500 to open a CD, you can only take advantage of current CD interest rates if you have that much cash on hand. Additionally, you need to make sure that you can deposit that amount of cash with the assumption that you won’t need to access it, which means you also need a solid emergency fund.

If you can afford to give up $500 for a few months, or possibly even longer, a CD is a great way to put your money to work for you. Reach out to your bank or financial institution to learn more about current rates, maturity schedules, and more.