You still have an opportunity to achieve good profits with a certificate of deposit, but it's crucial not to wait. The Federal Reserve reduced interest rates on three occasions during 2024, and subsequently implemented two anticipated reductions in 2025 at their September and October gatherings, resulting in average CD returns being significantly lower than their previous peak levels.
TL;DR
- Best CD rates offer up to 4.20% APY, with Newtek Bank providing the highest for a six-month CD.
- Federal Reserve rate cuts in 2024 and 2025 have lowered average CD returns from previous peaks.
- Online financial institutions and smaller banks often provide superior CD rates compared to major banks.
- Consider term length, APY, minimum deposit, penalties, and deposit insurance when choosing a CD.
At present, the best CD rates provide a maximum annual percentage yield of 4.20%. By depositing funds into a certificate of deposit now, you can secure a more favorable interest rate for an extended period, contingent upon the term duration that best aligns with your fiscal goals.
Today's top CD rates offer returns as high as 4.20%
Coins2Day collaborates with Curinos to track the leading rates presented by prominent U.S. Financial entities, assisting readers in securing optimal yields on their CD holdings. The foremost CD rate, standing at 4.20%, is provided by Newtek Bank for its six-month CD. Below are the most competitive CD rates available:
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
See how CD rates stack up at leading national financial institutions
It's not by chance if you're not acquainted with some or all of the entities mentioned. Major financial institutions, such as Chase, PNC, and U.S. Bank, prioritize offerings like loans and credit cards over certificates of deposit. As a result, their CD interest rates often fall short when contrasted with those from smaller community banks or online financial services.
CD rates news 2025
Individuals holding certificates of deposit should recognize that prevailing interest rates are significantly influenced by The Federal Reserve's policy choices, particularly adjustments to the fed funds rate. Keeping abreast of the Fed's interest rate directives is crucial for anyone with investments in certificates of deposit.
In 2024, the Federal Reserve implemented three interest rate cuts, concluding with a reduction in December that set the federal funds rate between 4.25% and 4.50%. This move by the central bank aimed to bolster the economy, as inflation started to decline following its post-pandemic escalation. Consequently, rates on certificates of deposit (CDs) retreated from their recent peaks.
During its gathering on September 16-17, 2025, the Federal Reserve enacted the year's initial interest rate reduction, subsequently implementing another decrease at its October 28-29 session. Presently, the federal funds rate is positioned at 3.75%-4.00%. Certain Certificates of Deposit saw declines in their yields around the period these reductions were introduced.
One additional Fed meeting remains on this year's schedule, with the subsequent event slated for December 9-10. The rates for certificates of deposit might decline even more if financial institutions foresee the Federal Reserve implementing another reduction.
The robust average CD returns observed in 2022 and 2023 stemmed directly from The Federal Reserve's interest rate increases implemented after the pandemic. Between March 2022 and July 2023, the Federal Open Market Committee (FOMC) raised interest rates on eleven occasions, moving the federal funds rate from zero to 5.25%-5.50%. This move by the central bank was a response to inflation escalating at rates not seen since the 1980s.
Current certificate of deposit rates remain close to their peak levels. Individuals have a chance to lock in appealing yields for both brief and extended certificate terms. By depositing a significant sum into your CD account, you can accumulate considerable interest.
Check Out Our Daily Rates Reports
- Discover the highest high-yield savings rates, up to 5% for November 25, 2025.
- Discover the current mortgage rates for November 25, 2025.
- Discover current refi mortgage rates report for November 25, 2025.
- Discover current ARM mortgage rates report for November 25, 2025.
- Discover the current price of gold for November 25, 2025.
- Discover the current price of silver for November 25, 2025.
Historical CD rates
During the initial years of the 1980s, certificate of deposit (CD) yields climbed to double-digit figures, presenting a sharp divergence from the more modest rates observed presently. Nevertheless, by the year 2019, the annual percentage yield (APY) for a five-year CD had marginally surpassed 3.00%.
During the initial years of the 2020s, the highest rates generally stayed under 1.00% APY. More recently, rates have experienced a notable rise, with the most advantageous offers exceeding 5.00% APY in 2024. Nevertheless, in 2025, numerous rates have been observed hovering around the 4.00% threshold.
How to get a good CD rate
Figuring out what makes a strong CD rate requires weighing the top interest rate you can find against how long you're prepared to commit your funds.
For instance, investing a large sum in a five-year CD yielding 5.00% may not be a good choice if you need the money sooner or if you believe interest rates could start rising again. But generally speaking, rates that exceed the national average are considered worthwhile.
Key factors to consider when comparing CDs include:
- Term length: Ensure it aligns with your savings goals and timeline.
- APY: Higher rates typically are offered for longer terms.
- Minimum deposit: Make sure you can meet the required initial balance.
- Penalties: Understand the costs associated with withdrawing funds before maturity.
- Deposit insurance: Verify that the bank is Federal Deposit Insurance Corp. (FDIC)- or National Credit Union Administration (NCUA)-insured for deposit protection.
Online financial institutions commonly provide superior CD returns—just be aware of any minimum deposit stipulations and related charges. Opting for a bank instead of a brokerage firm may occasionally assist in sidestepping superfluous costs.
Explore what online banks have to offer
Digital banks and financial technology firms typically provide more attractive interest rates compared to major nationwide banks. Established financial corporations mainly generate income through the interest earned on borrowed funds, service charges, and investments in financial instruments.
Conversely, more modest financial institutions and digital financial technology firms draw in patrons by offering appealing annual percentage yields on savings. Furthermore, internet-based banks generally function with reduced operational expenditures, enabling them to transfer more favorable interest rates to their clientele.
Set up a CD ladder
CD ladders offer an ideal solution for individuals reluctant to lock up their money for lengthy durations. Spreading your savings across certificates of deposit with varying expiration dates allows you to enjoy both immediate access to funds and more favorable interest rates over the long haul.
For example, if you allocate $3,000 across three CDs with staggered maturity dates (one-year, two-year, and three-year). Upon each CD reaching its maturity date, you have the option to reinvest the principal and any earned interest into a fresh three-year CD. This strategy provides you with yearly access to your funds and the accumulated earnings.
Cassie Bottorff, a former Coins2Day editor, developed a series focusing on daily CD rates. Glen Luke Flanagan, Editor of Evergreen Content, has updated this particular edition.