CD Rates Today: One Bank Just Hit 5.65% Before the Fed Meets

CD rates today sit at their highest point in over two decades, and the gap between the best offer and the average one is now wider than at any time since 2007. According to data tracked by DepositAccounts, the top 12-month certificate of deposit pays 5.65% APY, while the national average for the same term hovers near 1.85%. On a $25,000 deposit, that difference is roughly $950 in interest over a single year — money most savers are quietly leaving on the table. The reason rates are this high is simple: the Federal Reserve has held its benchmark rate in a range of 5.25% to 5.50% since last summer, and banks that need deposits are paying up to get them. The catch is that this window is closing. Fed officials have signaled rate cuts are likely before the end of the year, and CD yields tend to fall before the first cut actually happens, not after. Where the top rates are hiding The best CD rates today are not at the big national brands. They're at online banks, smaller regional institutions, and credit unions that use high yields to attract deposits without the overhead of branch networks. Several federally insured institutions are currently offering: - 6-month CDs: up to 5.50% APY - 12-month CDs: up to 5.65% APY - 18-month CDs: up to 5.25% APY - 5-year CDs: up to 4.75% APY That last number matters more than it looks. Five-year CD rates above 4.5% are rare outside of rate-hike cycles, and locking one in now protects you if the Fed cuts aggressively through 2025 and 2026. The trade-off is real, though: your money is stuck, and early withdrawal penalties typically cost three to six months of interest. The fee trap nobody reads about Before you chase the highest headline rate, check three things. First, the minimum deposit — some top-yielding CDs require $10,000 or more to open. Second, the early withdrawal penalty, which varies wildly between banks. Third, whether the rate is promotional and resets after a few months. A 5.65% teaser that drops to 2% after 90 days is worse than a steady 5.00% for a full year. Also worth knowing: Treasury bills and money market funds are paying competitive rates right now, often with better liquidity. A 6-month T-bill recently yielded around 5.4%, and you can sell it on the secondary market if you need cash. That flexibility can be worth more than a few basis points. How to decide in five minutes If you have cash you won't touch for a year, a 12-month CD near 5.5% is close to a no-brainer. If you might need the money, use a no-penalty CD or a high-yield savings account instead — several are still paying above 4.5%. If you're retiring or building a ladder, splitting your deposit across 1-, 3-, and 5-year terms smooths out the rate risk. And always confirm the bank is FDIC or NCUA insured, because a great rate at an uninsured institution is not a great rate at all. The bottom line: CD rates today are genuinely excellent, but they are a moving target tied to a Fed decision that could come at any meeting. Shopping around for an hour can be worth hundreds of dollars — far more than most people earn in an hour of work. The savers who act before the first cut will look smart a year from now. The ones who wait for a "better" rate will likely be chasing one that no longer exists.