Today's best CD yields 4.20% on Nov. 7, 2025

The most lucrative CD rates currently available offer up to 4.20% APY. By funding a certificate now, you could potentially lock in these high rates for years to come. With markets anticipating the possibility the Fed further reducing the federal funds rate at the end of the year, any delays may result in missing out.

Today's top CD yields: Secure up to 4.20% APY

The highest CD rate of 4.20% is offered by Bread Savings on its six-month CD. Newtek Bank also offers a six-month CD with a 4.20% APY but requires a higher minimum deposit. 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 highest 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

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Many of the institutions mentioned may not be familiar because certificates of deposit typically do not generate significant income independently for major financial institutions. 

Established banks like Chase, PNC, and U.S. Bank prioritize attracting customers through more lucrative products, such as loans and credit cards, rather than CDs. As a result, the Certificate of Deposit rates provided by these larger banks are frequently less than what you'd find at smaller, local banks or online financial services. Furthermore, obtaining a favorable interest rate from these major financial institutions might require you to establish more deposit accounts or satisfy increased minimum deposit thresholds.

2025 CD rate updates

CD rates are directly influenced by The Federal Reserve's monetary policy choices, a fact investors need to grasp. CD rates tend to move in tandem with changes in the fed funds rate. For CD investors, keeping a close watch on central bank policy changes is essential for successfully preparing for possible rate modifications.

The Federal Open Market Committee (FOMC) convened in October, resulting in the federal funds rate being set at 3.75%-4.00%. 28-29 and settled on a quarter-point decrease. This occurred shortly after the initial reduction of the federal funds rate for 2025, which took place in September.

By the end of 2024, the Federal Reserve had reduced interest rates on three occasions, establishing the federal funds rate between 4.25% and 4.50% in December. As inflation started to decline after a pandemic-induced surge, the central bank lowered interest rates. The rate cuts aimed to bolster the U.S. The economy saw lower loan costs, which subsequently reduced CD rates from their peak levels of previous years.

The substantial CD returns observed in 2022 and 2023 were a direct consequence of the Federal Reserve's two-year period of interest rate increases. Between March 2022 and July 2023, the FOMC increased the federal funds rate on 11 occasions, elevating it from zero to a range of 5.25%-5.50%. The central bank took action to curb inflation, which had reached levels not witnessed since the 1980s, a situation exacerbated by the substantial economic disruptions stemming from the COVID-19 pandemic.

As the Federal Reserve enacted its initial rate reduction of 2025 during its September session, interest rates started to exhibit a downward trend. Further declines are possible if the Fed decides to lower rates once more during its December meeting. The subsequent FOMC meeting is scheduled for December. 9-10.

Although current CD rates have eased somewhat, they remain close to their recent peaks. Savers can still find numerous chances to lock in favorable interest rates for both their short-term and long-term Certificates of Deposit. Depositing a more significant amount of money into your CD account allows for considerable interest growth.

Historic CD rates

During the early 1980s, certificates of deposit (CDs) offered interest rates that climbed into double digits, a significant difference compared to the lower rates seen today. By 2019, however, the APY for a 5-year CD had surpassed 3.00%.

Over the past few years, we've seen a trend of rising interest rates, with top 1-year CD rates in 2024 exceeding 5.00% APY. These APYs are now beginning to stabilize, and we no longer see many rates above this threshold in 2025.

Better CD rate guide

Determining what constitutes a "good" CD rate involves finding a balance between securing the highest available rate and your willingness to keep funds locked away for a specific duration. 

For instance, choosing a 5.00% APY CD over five years might not be ideal if you expect to need access to your funds sooner or if interest rates increase, potentially lowering your overall returns. Generally, rates that exceed the national average are considered advantageous. 

It's crucial to compare rates across different banks to find the best option tailored to your specific financial goals. Key factors to consider when comparing CDs include:

• Term length: Ensure it aligns with your savings objectives and time frame.
• APY: Higher rates are typically offered for longer terms.
• Minimum deposit: Verify that you can meet the required initial balance.
• Penalties: Understand the costs associated with early withdrawal before maturity.
• Deposit insurance: Confirm that the bank is Federal Deposit Insurance Corp. (FDIC)- or National Credit Union Administration (NCUA)-insured for deposit protection.

Additionally, online banks often provide higher interest rates, but be mindful of any minimum balance requirements and associated fees. Opting for a bank rather than a broker can sometimes help avoid unnecessary charges.

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Online banks and fintech companies often offer more competitive rates compared to national banks. Large financial institutions primarily derive revenue from interest on loans, fees, and investments in securities.

Meanwhile, smaller banks and online fintech companies attract customers by providing competitive APYs on deposit accounts. Furthermore, online banks typically operate with lower overhead costs, allowing them to pass on better rates to their clients.

Build a CD ladder

CD ladders appeal to savers who prefer flexibility without committing funds for extended periods. By diversifying savings across CDs with different maturity dates, you can balance short-term accessibility with higher long-term interest rates.

For instance, begin by investing $3,000 in three staggered CDs (1-year, 2-year, and 3-year terms). As each CD matures, reinvest the funds into a new 3-year CD. This approach allows annual access to your funds while benefiting from accrued higher interest from the longer term lengths.

CD types

There are various types of CDs designed to meet different financial needs:

1. Brokered CDs are purchased and sold through brokerage accounts rather than directly from banks or credit unions. They often offer higher APYs because they are issued by banks and then sold to brokerages.
2. Callable CDs include a feature that allows the issuing institution to terminate the CD before its maturity date. Investors receive their principal and any accrued interest up to the call date if this option is exercised.
3. Bump-up CDs allow you to request a higher APY if interest rates increase after opening the account. Typically, you can adjust the rate once or twice during the CD's term.
4. No-penalty CDs do not charge penalties for early withdrawals before maturity. This type is less common and may offer lower APYs compared to traditional CDs.
5. Jumbo CDs require a substantial minimum deposit, often starting at $100,000 or more. They generally offer higher APYs than standard CDs.
6. Variable-rate CDs have an APY that changes in response to prevailing interest rates. These CDs carry more risk than traditional CDs because a decrease in interest rates before maturity can result in a lower yield.

Series on daily CD rates created by former Coins2Day editor Cassie Bottorff. This edition has been updated by Editor, Evergreen Content Glen Luke Flanagan.