Today, October 6, 2025, you can find top Certificate of Deposit rates offering up to 4.35% APY.

The best CD rates offer an annual yield of up to 4.35%. Opening an account today allows you to secure attractive interest rates for an extended period, contingent upon the term that aligns best with your financial objectives. Given the Federal Reserve's anticipated interest rate cuts this year, it's advisable to invest sooner rather than later.

Today's best CD rates: Earn up to 4.35%

A 4.35% APY, the top CD rate, is available from Ivy Bank for a three-month term. A six-month CD from Colorado Federal Savings Bank also provides a 4.35% APY, but necessitates a larger initial deposit. Bread Savings secures the second spot, offering a 4.30% APY on its six-month CD.

Fortune tracks the highest rates from prominent U.S. Financial institutions can help readers maximize their CD returns. Discover the top rates available:

Pro tip

Seeking the optimal Certificate of Deposit for your financial objectives? Explore competitive rates from leading financial entities:
–Wells Fargo
–Capital One
–Chase
–Bank of America
–Discover Bank
–Northern Bank Direct
–Ally Bank
–Newtek Bank
–Popular Direct
–Citibank
–Sallie Mae Bank

Compare CD rates at top national banks

The primary reason you may not recognize many of the names listed is quite simple: CDs usually don't generate significant revenue for Large financial organizations independently. 

Leading financial institutions such as Chase, PNC, and U.S. Banks tend to focus on drawing in customers with higher-profit offerings such as loans and credit cards, instead of Certificates of Deposit. As a result, the Annual Percentage Yields (APYs) provided by larger institutions on Certificates of Deposit (CDs) tend to be considerably less attractive than those found at smaller, local banks or digital-only financial services. To secure favorable terms with these institutions, you might need to establish additional deposit accounts or meet substantially larger minimum deposit requirements.

CD rates news 2025

For investors, it's important to know that the typical rates offered on Certificates of Deposit generally mirror the Federal Reserve's monetary policy choices, particularly adjustments to the federal funds rate. Central bank policy shifts significantly impact rate changes, making it crucial for CD investors to stay informed to effectively plan.

The current target range for the federal funds rate is 4.00% to 4.25%.

The Federal Reserve reduced interest rates on three occasions last year, bringing the fed funds rate to a range of 4.25%-4.50% by December 2024. Economic growth was maintained as the FOMC lowered interest rates, a move made as lingering post-pandemic inflation began to subside. As the Federal Reserve lowered interest rates, Certificate of Deposit Annual Percentage Yields (APYs) declined from levels not seen in twenty years.

As the Federal Reserve implements its initial rate reduction of 2025 during the September 16-17 session, Certificate of Deposit (CD) yields are once more exhibiting a downward trend. Further reductions are possible if the central bank implements more cuts at its October and December meetings. The upcoming FOMC meeting is scheduled for October 28-29.

The central bank's aggressive rate hikes in 2022 and 2023 led to the highest CD yields seen in two decades. The economy experienced its steepest inflation increase in decades, mirroring figures not seen since the early 1980s, largely a consequence of pandemic-induced disruptions. From March 2022 to July 2023, the Federal Open Market Committee increased interest rates on 11 occasions, moving them from zero to a range of 5.25%-5.50% in an effort to control inflation.

Today's CD rates remain close to their recent peaks. Favorable rates on both short-term and long-term Certificates of Deposit are still available for you to obtain. A substantial interest can be earned by depositing a larger lump sum into your CD.

Historical CD rates

In the early 1980s, certificate of deposit yields reached double-digit percentages, driven by rampant inflation and elevated interest rates. By 2019, the annual percentage yield for a 5-year certificate of deposit was just over 3.00%. 

Before the 2020s began, the highest annual percentage yields typically stayed under one percent. Lately, interest rates have been on the rise, with top 1-year CD yields climbing above 5.00% APY.

How to get a good CD rate

Assessing a favorable CD interest rate is a matter of individual perspective. Your investment strategy hinges on your available capital, the liquidity you require for your certificate, and the current market interest rates at the time of I wish to open an account.

A five-year CD offering 5.00% APY may prove unsuitable if immediate access to funds is required or if interest rates increase, resulting in a diminished Generally, rates exceeding the national average are beneficial. To secure the most favorable outcome, compare interest rates offered by various banks for the specific term you're interested in.

When assessing CDs, consider crucial elements such as the minimum deposit needed, the duration options available, and the interest rates offered (which are generally higher with online institutions). Consider bank fees, early withdrawal penalties, and other charges. Choosing a bank over a brokerage might save you money on avoidable costs.

Consider these factors:

• Term length: Ensure they match your savings goals.
• APY: Higher rates are available for longer CD terms.
• Minimum deposit: Ensure you can meet minimum deposit requirements.
• Be aware of penalties if you must access funds from a CD prior to its expiration date.
• Confirm that your preferred bank or credit union is insured by the Federal Deposit Insurance Corp. Provided by the FDIC or NCUA.

Look into offerings from online banks

Traditional national banks generally provide less favorable interest rates compared to online banks and fintech companies. The main income sources for major financial organizations are the interest collected on loans, various charges, and returns from securities investments. 

Smaller financial institutions and online fintech firms, conversely, actively seek out new clientele by providing advantageous Annual Percentage Yields on their deposit products. Furthermore, online banks generally incur reduced operational expenses, which enables them to offer more favorable rates to their customers.

Set up a CD ladder

CD ladders are ideal for individuals who are reluctant to commit their savings for extended periods. Spreading savings among Certificates of Deposit with different maturity dates allows for both readily accessible funds and more favorable long-term yields. 

If you start by placing $3,000 into three Certificates of Deposit with staggered maturity dates (one year, two years, and three years), then when each one expires, you will reinvest the funds into a 3-year Certificate of Deposit. This option allows you to withdraw your funds, including accrued interest, on an annual basis. 

Types of certificates of deposit

Different kinds of CDs are available to meet various requirements, for example:

• Brokerage accounts are used to buy and sell Brokered CDs, unlike traditional banks or credit unions. These are usually provided by banks and then sold to brokerage firms, who subsequently offer them to their clients with higher annual percentage yields than standard Certificates of Deposit.
• Include a provision that enables the issuing financial institution to terminate the CD prior to its maturity. When such a call is made, investors receive back their initial investment plus all interest that has accumulated by then.
• Bump-up CDs offer the possibility of a better APY should interest rates rise post-account opening. Typically, you have the option to modify the interest rate on your Certificate of Deposit a limited number of times, usually one or two, throughout its duration.
• You can withdraw funds before maturity without incurring any penalties. These are not as common as other types of CDs, and their Annual Percentage Yields (APYs) might be lower than those of standard CDs.
• Jumbo CDs typically necessitate a starting deposit of $100,000 or more, but often offer superior annual percentage yields compared to regular CDs.
• Adjusting Annual Percentage Yields that track current market interest rates. These carry more risk than standard CDs as a drop in interest rates prior to their maturity date could result in a reduced return.

Cassie Bottorff, a former editor at Fortune, developed a series focused on daily CD rates. Glen Luke Flanagan, Editor for Evergreen Content, oversaw this updated edition.