Will CDs still be worth opening in 2025? Here’s what experts believe.

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A CD account could still pay off in 2025 — and there are lots of reasons to consider one. Getty Images
Certificates of deposit (CD) offer a predictable return on investment, making them a popular choice in terms of interest-bearing accounts. Unlike high-yield savings accounts with their variable rates, your rate is guaranteed for the duration of the CD term. The upside is you’ll receive consistent gains until your CD matures, regardless of fluctuations in market rates — but the downside is that you’ll owe early withdrawal penalties if you take your funds out of the account before it matures.
Part of the recent draw has been that the Federal Reserve raised interest rates to combat inflation in the post-pandemic era, and CD rates soared in tandem, prompting a surge of interest in this FDIC-insured investment that was suddenly paying upwards of 5.00%. Now, however, with inflation cooling, the Fed slashing rates and CD yields on the decline, many investors are wondering if CDs are still worth it in 2025.
Start comparing today’s top CD account rates now.
Will CDs still be worth opening in 2025? Here’s what experts believe.
Here’s what you need to know about whether CD accounts will be worth considering in the new year.
CDs are still a good investment under certain conditions
While CDs may lose some of their luster as rates fall from recent record highs and return to historic norms, these conservative investments will likely still have a place in your portfolio in the right circumstances — like when you need to keep money accessible and can’t afford to take on much risk.