Why CDs Are a Great Place for Your Cash in October 2025
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A few weeks back, the Federal Reserve announced its first rate cut in nine months. It also projected a drop in interest rates through 2027 and beyond.
That means today's strong CD rates will soon disappear, and they probably won't return for months or years. If you've been thinking about putting money in a CD, right now -- October 2025 -- is definitely the time.
Want to lock in a high APY before it's too late? Here's how to get started.
How to open a CD today
A certificate of deposit (CD) is a type of savings product where you deposit money for a set period, then earn a fixed interest rate in return. It's the perfect way to get a guaranteed return on cash you don't need immediate access to.
For example, let's say you put $10,000 in a 1-year CD that earns 4.00% APY. When your CD matures after the full year, you'll get your money back, plus 4.00% in earned interest -- in this case, $10,400.
The only downside is that you'll have to lock your money in the CD for the full term, or else get hit with an early withdrawal penalty. If you can stay disciplined, though, CDs are the perfect way to keep earning a high APY even once interest rates have fallen.
Here's how to open a CD the right way today:
- Find the right term length: Shorter terms (3-12 months) mean quicker access to your cash, but longer terms (2-5 years) mean you'll keep earning for longer.
- Shop around for the best rate: CDs from online banks usually offer the highest APYs.
- Deposit your cash: Move your money from an existing account to your new CD.
- Set it and forget it: If you take your money out early, you'll probably get hit with an early withdrawal penalty.
- Enjoy your earnings, or do it all again: When your CD matures, you can choose to either withdraw your money or move it into another CD.
Ready to get started? See our full list of the best CDs to lock in your high rate today.
Are CDs right for you?
If you were ever going to open a CD, now would definitely be the time. Today's CD rates are still at relative highs, but are expected to drop soon. Investing now means you'll keep earning a strong APY, even as rates keep falling.
They're a perfect choice for you if:
- You already have an emergency fund set up
- You're saving for a short- to medium-term goal
- You're okay with locking up your cash to get a guaranteed return
Ready to get started? Check out our full list of the best CDs available now to lock in your high APY today.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.