Earn as much as 4.35% APY. Explore top CD rates as of Oct. 21, 2025.

The best CD rates offers an annual percentage yield of up to 4.35%. This presents an opportunity to secure substantial rates for an extended period by funding a certificate of deposit now, contingent on selecting a term aligned with your financial objectives. With market expectations pointing to potential Fed rate reductions later this year, perhaps even at the upcoming meeting, prompt action is advisable.

Top CD rates Oct 21, 2025: Up to 4.35% APY

The highest CD rate of 4.35%% is offered by Ivy Bank on its three-month CD. Coins2Day monitors the top rates offered by leading U.S. Financial institutions to help readers obtain the best possible return on their CD investments. Here are the best CD rates available on the market:

Pro tip

Looking for the best CD to fit your investment needs? See rates from top institutions:
–Wells Fargo
–Capital One
–Chase
–Bank of America
–Discover Bank
–Northern Bank Direct
–Ally Bank
–Newtek Bank
–Popular Direct
–Citibank
–Sallie Mae Bank

Examine interest rates for Certificates of Deposit at leading financial institutions nationwide.

The reason you might not recognize many of the banks listed is quite simple: Certificates of Deposit usually don't provide significant revenue for large financial organizations by themselves.

Major national financial institutions, including Chase, PNC, and U.S. Bank, prioritize drawing in clients with higher-yield offerings like loans and credit cards over certificates of deposit (CDs). Consequently, the interest rates provided on CDs at these prominent banks are frequently considerably less competitive than those found at smaller, regional banks or online-only providers. Furthermore, to qualify for a favorable rate with these larger institutions, you might need to establish additional deposit accounts or meet substantially higher minimum deposit requirements.

CD rates news 2025

Investors should understand that typical CD yields move in tandem with adjustments to Federal Reserve monetary policy, particularly changes in the fed funds rate. It's essential for individuals putting money into CDs to keep an eye on the central bank's policy movements to predict possible yield shifts.

The Federal Reserve lowered the fed funds rate on three occasions last year, bringing it to a range of 4.25% to 4.50% by December 2024. With post-pandemic inflation subsiding, the central bank's rate reductions aimed to support economic stability. Consequently, certificate of deposit yields declined from their highest levels in twenty years following the Fed's rate cuts.

The 20-year peaks in CD yields stemmed from The Fed's interest rate increases during 2022 and 2023. Inflation surged more than at any point since the early 1980s, driven by pandemic-related economic disruptions. From March 2022 to July 2023, the Fed implemented 11 rate hikes, moving them from zero to 5.25%-5.50% in an effort to curb inflation.

The Fed maintained its stance on rate cuts throughout much of 2025, but ultimately reduced the federal funds rate to 4.00%-4.25% during its September 16-17 session. Two additional meetings for The Federal Open Market Committee (FOMC) are scheduled for 2025, including the next meeting on October 28-29.

CD rates remain close to their recent highs, offering you the opportunity to secure favorable rates for both short and long durations. Investing a substantial sum in your CD can lead to significant interest gains.

Historical CD rates

During the early 1980s, certificates of deposit (CDs) offered interest rates that climbed into double figures, a significant difference from what was seen in 2025. By 2019, though, the annual percentage yield (APY) for a five-year CD had fallen to slightly over 3.00%.

During the early 2020s, the highest rates typically remained under 1.00% APY. More recently, rates have been climbing, with top 1-year CD yields surpassing 5.00% APY. While these are starting to decrease a bit, they're still considerably higher than before the pandemic.

How to get a good CD rate

Deciding on a "good" CD rate involves weighing the highest available rate against your capacity to commit funds for the duration. For instance, a 5.00% APY CD with a five-year term might not be suitable if you anticipate needing access to your money earlier or if interest rates increase, resulting in a diminished return. Typically, rates exceeding the national average are considered advantageous. It's advisable to compare offerings from various financial institutions for your chosen term to identify the most suitable choice.

Key factors to evaluate when comparing CDs include:

• Term length: Ensure it matches your savings goals and timeline.
• APY: Higher rates are usually offered for longer terms.
• Penalties: Understand the costs associated with early withdrawals.
• Minimum deposit: Ensure you meet the required minimum balance.
• Deposit insurance: Confirm coverage from The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).

Online banks often provide better interest rates, though it's wise to verify any minimum balance stipulations and related charges. Choosing a bank over a broker could potentially help you sidestep avoidable fees.

Explore what online banks provide

Online banks and fintech firms generally provide more favorable rates compared to traditional national banks. Major financial entities primarily earn income from loan interest, service charges, and investments in securities.

Smaller financial institutions and digital financial technology firms draw in new clients by providing attractive annual percentage yields on savings and checking accounts. Furthermore, internet-based banks typically incur reduced operational expenses, allowing them to extend more favorable interest rates to their account holders.

Set up a CD ladder

CD ladders are a great choice for individuals who prefer not to commit their funds for extended durations. This strategy involves dividing your savings among certificates of deposit with different maturity dates, allowing for both immediate access to some funds and more favorable rates on longer-term investments.

You might put $3,000 into three Certificates of Deposit (CDs) with staggered maturity dates: one for 1 year, one for 2 years, and one for 3 years. When each CD reaches its maturity date, reinvest the funds into a new 3-year CD. This approach allows you to access your money annually, along with any interest it has generated.

Various CD formats you ought to be aware of

Different types of CDs serve various needs:

• Brokered CDs are purchased and sold through brokerage accounts rather than directly from banks or credit unions. Brokered CDs typically offer higher APYs than traditional CDs because they are issued by banks and then sold to brokerages.
• Callable CDs feature a call option, enabling the issuing institution to end the CD prior to its maturity. Should this option be exercised, investors will be reimbursed their principal along with any interest accumulated up to the call date.
• Bump-up CDs lets you seek a better APY if interest rates increase post-account opening. Typically, you can modify the rate one or two times throughout the CD's duration.
• No-penalty CDs do not impose penalties for early withdrawals before maturity. This type is less common and may offer lower APYs than traditional CDs.
• Jumbo CDs necessitate a substantial initial deposit, frequently commencing at $100,000 or above. Typically, they provide superior APYs compared to conventional CDs.
• Variable-rate CDs feature an annual percentage yield that fluctuates based on current interest rates. These certificates of deposit involve greater risk compared to standard CDs, as a decline in interest rates prior to their maturity date could result in a reduced return.

Cassie Bottorff, a former Coins2Day editor, developed a series focusing on daily CD rates. Glen Luke Flanagan, Editor, Evergreen Content, has since updated this particular edition.