Top certificates of deposit (CDs) for October 2025

You have a checking account for settling payments and for items that need prompt access to your money. And you'll have a high-yield savings account that provides an above-average APY for your emergency savings. What's coming up? Savvy individuals may choose to open one or more certificate of deposit to safeguard their funds against market shifts that can lead to variable interest rates on alternative deposit accounts. 

Discover our top CD selections, offering an APY as high as 4.35%. Let's explore them.

Editor's Selections: Top CDs for October 2025

Fortune has partnered with Curinos, a group of banking industry specialists, to track leading CD rates and provide consumers with up-to-date information. We've compiled some top picks to suit different requirements and durations.

Details reviewed Oct. 21, 2025.

Optimal for a high annual percentage yield

Ivy Bank

CD Term	3 months
APY	4.35%
Minimum deposit	$1,000

View offer

at MoneyLion

Company insights

• Year Founded: 1834
• Company Headquarters: Cambridge, MA
• CEO: Ryan Bailey

If you’re simply looking for the highest APY you can find on a CD to maximize the interest you earn, Ivy Bank tops our list with a 4.35% APY on a three-month CD. With a $1,000 minimum deposit, this CD offers a fairly accessible way for individuals to open an account without needing to commit a large sum of money.

Details reviewed Oct. 21, 2025.

Ideal for those seeking a small initial investment

Synchrony

CD Term	6 months
APY	4.10%
Minimum deposit	$0

View offer

at Bankrate

Company insights

• Year Founded: 1932
• Company Headquarters: Stamford, CT
• CEO: Brian D. Doubles

Synchrony CDs don't necessitate a minimum deposit, and numerous options provide attractive returns. The 6-month CD, offering a 4.10% APY, is our leading choice in this category. If you're aiming for a solid annual return without committing a substantial amount of money, this investment could be a suitable choice.

Details reviewed Oct. 21, 2025.

3-Month CD's top choice

First National Bank of America

CD Term	3 months
APY	4.00%
Minimum deposit	$1,000

View offer

at MoneyLion

Company insights

• Year Founded: 1955
• Company Headquarters: East Lansing, MI

For those seeking the highest APY, Ivy Bank's 3-month CD stands out with its 4.35% APY, making it a clear frontrunner in this segment. Alternatively, explore the 3-month CD offered by First National Bank of America. With a modest $1,000 minimum deposit, it offers a 4.00% APY, a respectable return in the current financial climate. Savers looking for substantial earnings without a lengthy commitment will find either of these CDs a suitable option. 

Details reviewed Oct. 21, 2025.

Optimal for a six-month Certificate of Deposit

Bread buys

CD Term	6 months
APY	4.20%
Minimum deposit	$1,500

View offer

at MoneyLion

Company insights

• Year Founded: 1996
• Company Headquarters: Columbus, OH
• CEO: Ralph Andretta

Fortune Rankings

#687 on the 2025 Fortune 500 list

If you're prepared to invest your funds for a six-month period, the 6-month CD offered by Bread Savings is a worthwhile option. It offers a 4.20% APY, which is quite strong given today's economic climate. A $1,500 minimum deposit is needed, which is quite reasonable when compared to some rivals demanding $5,000 or higher.

Details reviewed Oct. 21, 2025.

Optimal for a one-year certificate of deposit

Zynlo Bank's services

CD Term	12 months
APY	4.05%
Minimum deposit	$0

View offer

at MoneyLion

Company insights

• Year Founded: 2020 (a division of PeoplesBank, established in 1885)
• Company Headquarters: Holyoke, MA
• CEO: Tom Senecal

Considering saving your funds for a year? This CD from ZYNLO Bank, offering a 4.05% APY, might be a suitable option for your savings. We also appreciate its accessibility for savers, even those without a substantial initial sum, because no minimum deposit is necessary.

Details reviewed Oct. 21, 2025.

Ideal for a five-year certificate of deposit

Synchrony

CD Term	60 months
APY	4.00%
Minimum deposit	$0

View offer

at Bankrate

Company insights

• Year Founded: 1932
• Company Headquarters: Stamford, CT
• CEO: Brian D. Doubles

Perhaps you're aiming to keep that nest egg for an extended duration, seeking the assurance of a strong Annual Percentage Yield throughout the years. Should that be the case, be aware that Synchrony provides a robust 4.00% APY on its five-year CD, and there's no minimum deposit needed.

Details reviewed Oct. 21, 2025.

Ideal for a 10-year certificate of deposit

First National Bank of America

CD Term	120 months
APY	3.90%
Minimum deposit	$1,000

View offer

at MoneyLion

Company insights

• Year Founded: 1955
• Company Headquarters: East Lansing, MI

At this stage, you're committed to the extended duration. For investors willing to commit funds for ten years in anticipation of a substantial return, First National Bank of America's 10-year CD is a noteworthy option. It provides a 3.90% APY and necessitates a $1,000 minimum deposit. 

Details reviewed Oct. 21, 2025.

A comprehensive overview of CDs

To craft a successful CD strategy, it's essential to understand various terms and approaches. Here are some fundamental concepts.

A certificate of deposit (CD) is a type of savings account that holds a fixed amount of money for a fixed period of time, like six months, one year, or five years, in exchange for a fixed interest rate.

Customers get a set interest rate on certificates of deposit (CDs) when they commit their funds for a predetermined duration. Interest is usually disbursed at set intervals, such as daily, monthly, or quarterly.

When a Certificate of Deposit (CD) matures, meaning its term has concluded, you're able to take out your original deposit along with any accumulated interest. Should you access your funds before a CD's maturity date, most certificates of deposit impose an early withdrawal fee, typically equivalent to a few days' or months' worth of earned interest.

Typically, upon maturity, your CD is renewed automatically. If you prefer not to renew your CD, a grace period is typically provided, allowing you to withdraw your money.

What constitutes a favorable interest rate for a Certificate of Deposit?

A “good” CD rate can be somewhat subjective. You must find a compromise between securing the most favorable interest rate and the maximum duration for which your funds can remain invested. For example, if you find a CD offering 5% APY, but it requires you to keep your money on deposit for five years, the interest rate may not be worth it. You might need your money sooner or rates could go higher while you’re stuck earning a lower return.

A CD rate exceeding the national average is typically a good option. To determine if a CD is a good investment, it's wise to examine offers from various financial institutions and identify the one providing the most favorable interest rate for your desired duration.

The FDIC publishes national averages for a variety of deposit account types here. Currently, the national average for Certificates of Deposit (CDs) spans from 0.25% for 1-month terms to 1.68% for 12-month terms.

CD rates are influenced by several factors.

Your bank or financial institution determines its own CD rates. Several factors, however, can affect these rates. This covers the duration of your CD (longer terms typically yield better rates than shorter ones) and its classification, the sum of your initial investment (certain CDs feature tiered interest structures), and prevailing interest benchmarks. Interest rates determined by The Federal Reserve, along with short-term special deals provided by your bank or credit union. 

The APY for a Certificate of Deposit (CD) is its annual percentage yield.

APY, or “annual percentage yield.”, is a method for determining the total interest earned on an investment, like a CD, over a year, factoring in the impact of compound interest.

A CD's Annual Percentage Yield (APY) is determined by the interest rate set by the bank or financial institution, how often interest is compounded (e.g., daily, monthly, yearly), and the duration of the CD's term.

CD ladders involve investing in multiple certificates of deposit (CDs) with staggered maturity dates. This strategy allows for regular access to funds as each CD matures, while also potentially earning higher interest rates over time. When a CD matures, the principal and earned interest can be reinvested into a new CD, typically with a longer term, to continue the laddering process.

Many savers hesitate to commit their money to a long-term CD, and this is a common sentiment. Some Certificates of Deposit (CDs) have very short terms, lasting only a few months, while others mature over several years. Typically, longer-term CDs provide a better interest rate, but require you to commit your funds for an extended period. 

A CD ladder allows you to reap the advantages of both short-term and long-term certificates of deposit. This approach involves diversifying your savings across multiple Certificates of Deposit (CDs) with different maturity dates. 

A CD ladder strategy involves dividing your investment across multiple certificates of deposit with staggered maturity dates. For instance, if you plan to invest $3,000, you'd put $1,000 into three CDs maturing at different times, such as one, two, and three years. Upon the maturity of each CD, you'll reinvest the funds into a new three-year CD. This ensures you have cash available annually.    

Is the interest earned on a CD subject to taxation?

If a Certificate of Deposit (CD) is your main choice for saving money, remember that the interest your deposits generate is viewed as taxable income by the IRS. Any interest you receive will be taxed by both the federal and state governments. 

Your bank will generally issue a 1099-INT form if you've earned more than $10 in interest, and the tax you'll owe is determined by your interest earnings and tax rate.

Early withdrawal of funds from your CD may also result in penalties that will appear on your 1099-INT form. 

Can a certificate of deposit be seen as a secure investment?

Certificates of deposit are viewed as secure investments, provided they are held with financial institutions insured by the FDIC or NCUA, which protect your funds up to $250,000 per depositor, per bank, and per account. The ownership category limit is $250,000 per share owner, per insured credit union, for each account ownership category. 

CD Formats

You can select from several CD options based on your desired deposit amount, whether you want early access to your funds before the maturity date, and other factors. Here are some of the most frequently encountered CD formats: 

Negotiated Certificates of Deposit

Brokered Certificates of Deposit (CDs) are transacted via a brokerage account, differing from those acquired directly from a bank or credit union. 

Banks typically issue these CDs and then sell them to brokerages. These brokerages subsequently present them to clients, offering superior APYs compared to conventional CDs. 

Brokered CDs offer increased flexibility, allowing you to access your funds early by selling them on a secondary market instead of incurring an early withdrawal penalty. 

By taking this action, you expose yourself to the possibility of fluctuating interest rates. 

Should you decide to sell your brokered CD subsequent to an increase in interest rates, its value to potential investors will diminish due to its lower rate, potentially resulting in a financial loss upon sale. 

Some brokered CDs may have a call feature too.

Callable Certificates of Deposit

Callable Certificates of Deposit (CDs) include a provision enabling the issuing financial institution to end the CD prior to its scheduled maturity date. In such a scenario, the investor retains their initial investment and any interest earned until that moment. 

When interest rates decline, a financial institution often redeems a CD, enabling it to issue new CDs at a reduced interest rate. When your CD matures, you'll need to reinvest your money at a potentially lower interest rate, a situation referred to as reinvestment risk. Callable CDs typically provide greater annual percentage yields compared to CDs that lack a call option, owing to this inherent risk.

CDs that offer increased interest rates

A bump-up CD allows you to request a higher APY on your certificate of deposit if interest rates increase after you've opened it. You can usually raise the interest rate on your Certificate of Deposit (CD) one or two times while it's active. 

CDs with no early withdrawal fees

This particular CD allows you to take out money before its maturity date without incurring any fees. This particular kind of CD is less frequently encountered than other CD varieties and might also provide reduced annual percentage yields compared to standard CDs.

Jumbo CDs

Jumbo Certificates of Deposit (CDs) generally necessitate an initial deposit of $100,000 or more, but they commonly provide superior Annual Percentage Yields (APYs) compared to standard CDs. 

CDs with adjustable interest rates

The Annual Percentage Yield (APY) for a variable-rate CD changes according to the prevailing interest rate. These certificates of deposit carry more risk than standard ones, as a decline in interest rates before their maturity date could result in a reduced rate of return.

CD calculator: estimating potential CD returns

To determine your CD's earnings, employ this formula: P(1+R/N)(NT) = A. Where “A” signifies the value of your CD, inclusive of interest. “P” is equal to your principal balance or initial deposit. “R” represents your yearly interest rate―in this case, it would be your APY. “N” indicates your CD's overall annual yield, while “T” shows how many years remain until your CD matures. To demonstrate this, consider the following example:

• Initial deposit “P” = $500
• APY “R” = 5.15%
• Monthly compound frequency “N” = 12
• Number of years until maturity “T” = 1

Our equation would turn out like this:

500 x ((1+(5.15/12)) x (12 x 1)) = $526.37

If you were to deposit $500 into a 12-month CD offering an interest rate of 5.15% that compounds monthly, you'd likely be able to withdraw approximately $526 once the term concludes.

To precisely calculate rates, you might need to perform some additional calculations to identify your variables. If the term is less than one year, you'll need to calculate the proportion of “1” for the “T.” Variable. For instance, a three-month term would equate to 0.25, and a six-month term would be 0.5, and so on. Here are additional examples illustrating the calculation of a CD's final value, starting with a $500 initial deposit and a 5% annual percentage yield:

Explore CD rates from leading national financial institutions.

Prominent financial institutions like Chase, PNC, and U.S. Financial institutions might draw in clients with offerings beyond Certificates of Deposit, such as loans and credit cards, which could result in their CD rates being less competitive than those from some of the less prominent entities previously listed. However, if you'd like to compare rates from these financial institutions, please refer to the table provided below. 

Is it possible to find a CD rate exceeding 5%?

By September 2025, the Fortune team anticipates no certificate of deposit rates exceeding 5%. 

The federal funds rate's fluctuations typically influence interest rates. Financial institutions tend to provide more attractive CD yields during periods of elevated federal rates, as Certificates of Deposit represent a stable deposit option that isn't withdrawn as readily as checking or savings accounts.

Considering the Federal Reserve implemented several reductions to its benchmark rate in late 2024, and subsequently declared the initial cut for 2025 during its September session, it's understandable that CD rates are currently below 5%.

It's still feasible to locate CD rates close to 4.50%, making this a prime opportunity to act if you're anticipating potential future Federal Reserve rate reductions later in the year. 

It's worth mentioning that better interest rates could be linked to extended CD durations. Should you decide to take out your funds prior to the maturity date, you might face early withdrawal penalties, which could result in the forfeiture of a significant amount of the interest earned. Before you decide on a Certificate of Deposit, confirm you're comfortable with not being able to access those funds for the specified duration.

Advantages and disadvantages of compact discs

Although CDs might seem appealing due to their elevated interest rates, they aren't suitable for all individuals. Let's examine some of the advantages and disadvantages.

Benefits of CDs

Certificates of Deposit (CDs) provide savers with several benefits, such as elevated Annual Percentage Yields (APYs) and consistent interest rates, potentially leading to enhanced long-term earnings. Certificates of Deposit (CDs) come in numerous durations, presenting a practical choice for individuals saving for both immediate and future financial objectives.

Drawbacks of certificates of deposit

CDs don’t offer the same liquidity as other savings accounts. Should you need to access your funds, you’ll likely be charged a penalty for doing so. Your overall returns on your Certificate of Deposit (CD) could be affected if inflation rises more quickly than the interest you earn by the time it matures.

CD alternatives explained

Certificates of Deposit (CDs) are distinct from other savings accounts due to several key differences. This type of account not only functions differently, but it may be better suited for a certain type of consumer who is saving for a goal with a specific timeline: 

• Access to your savings: CDs don’t offer the same level of access to your savings that a traditional savings account or MMA would. After you commit to your CD term, your funds will remain untouched, earning interest throughout the term until your CD reaches its maturity date. An early withdrawal would incur a penalty. 
• CDs usually offer higher APYs at a fixed rate: One of the major selling points for a CD account is that, typically, CDs offer a fixed APY at a higher rate than other types of savings vehicles. This allows you to benefit from a better rate for a longer duration, and you'll gain assurance that your APY will remain stable throughout your term after you've secured it. Due to outside influences, like hikes in the federal funds rate.

Certificates of Deposit compared to high-yield savings accounts

High-yield savings accounts function identically to standard savings accounts. This type of account, found at a credit union or bank, is designed for saving money and typically offers a higher interest rate on your funds. Unlike Certificates of Deposit (CDs), these savings accounts provide more flexibility in accessing your money, as you aren't obligated to keep your funds deposited for a predetermined period. Consequently, withdrawing funds incurs no charge.

CDs versus money market accounts

Money market accounts function as a hybrid between savings accounts and checking accounts. These accounts, much like CDs, generally provide significantly higher Annual Percentage Yields (APYs) compared to checking accounts. However, they might still retain some common features, such as check writing capabilities, debit card access, and the option to make withdrawals. ATM deposits. Savers capable of making a substantial initial deposit might also find this account type appealing, similar to a CD. 

Commonly posed questions