CD yields 4.18%; best rates today

The most lucrative CD rates presently accessible provide as much as 4.18% APY. By depositing into a certificate today, you might secure these elevated rates for an extended period. Considering that markets are expecting the Fed might further lower the federal funds rate by year's end, any postponements could lead to forfeiture of this opportunity.

The top CD rates available today offer returns as high as 4.18%.

Citibank is providing the top CD rate of 4.18% for a three-month term. However, keep in mind that the interest rates Citi provides for its CDs might differ depending on where you are situated.

Coins2Day tracks the premier interest rates from Major American banks to assist readers in maximizing their earnings on Certificates of Deposit. Below are the most advantageous CD rates currently accessible:

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 our rates stack up against major national financial institutions.

A number of the entities referenced might be unknown since certificates of deposit usually don't produce substantial revenue on their own for large banking corporations. 

Major financial institutions such as Chase, PNC, and U.S. Bank tend to focus on drawing in clients with more appealing offerings, including loans and credit cards, instead of certificates of deposit. As a result, the interest rates on CDs from these establishments frequently lag behind those found at smaller community banks or digital-only banks. Furthermore, obtaining a favorable rate from these prominent banks might require establishing other types of accounts or fulfilling more substantial initial deposit thresholds.

CD rates news 2025

Savers need to recognize that certificate of deposit yields fluctuate in tandem with The Federal Reserve's monetary policy pronouncements. As the fed funds rate ascends or descends, CD yields mirror these movements. It's vital for those investing in CDs to remain aware of changes in the central bank's strategy to properly prepare for possible rate modifications.

The federal funds rate is presently between 3.50% and 3.75% following the Federal Open Market Committee's (FOMC) decision to lower it by a quarter of a percentage point in early December. This action mirrored reductions of the same magnitude made at the Fed's meetings in September and October.

During 2024, the Federal Reserve implemented three interest rate reductions, establishing the federal funds rate between 4.25% and 4.50% by December. This monetary authority lowered rates as inflationary pressures started to diminish after a surge linked to the pandemic. The objective of these rate adjustments was to bolster the American economy by making borrowing more affordable, which subsequently caused certificate of deposit rates to decrease from their elevated levels of previous years.

The substantial returns from CD investments in 2022 and 2023 were a consequence of a prolonged period of Federal Reserve interest rate increases spanning two years. Between March 2022 and July 2023, the FOMC implemented eleven increases to the federal funds rate, elevating it from zero to 5.25%-5.50%. This action by the central bank was aimed at curbing inflation, which had reached levels not witnessed since the 1980s, largely due to the profound economic disturbances caused by the COVID-19 pandemic.

After the Fed's three rate cuts in 2025, CD rates have shown signs of dipping. They could drop further if the Fed reduces rates again next year. The next FOMC meeting is set for Jan. 30-31.

Although current CD yields have decreased, they remain close to their recent peaks. Savers still have numerous chances to lock in favorable rates for both brief and extended CD terms. By depositing a significant sum into your CD, you can enjoy considerable interest growth.

Historical CD rates

During the initial years of the 1980s, Certificates of Deposit (CDs) experienced a significant increase in interest rates, reaching double-digit figures, which stands in stark opposition to the more modest rates observed presently. Nevertheless, by the year 2019, the Annual Percentage Yield (APY) for a CD with a five-year term had exceeded 3.00%.

In recent years we experienced a period of increasing rates, with the best offerings surpassing 5.00% APY for 1-year CDs in 2024. These APYs are now beginning to stabilize, and we no longer see many rates above this threshold in 2025.

How to get a good CD rate

Establishing what constitutes a "good" CD rate requires finding a compromise between obtaining the best possible rate and your readiness to commit funds for a set period. 

Opting for a 5.00% APY CD with a five-year term may not be the best choice if you anticipate needing your money sooner or if interest rates climb, possibly diminishing your total earnings. Typically, rates surpassing the national average are viewed as beneficial. 

It's essential to evaluate offers from various financial institutions to discover the most suitable choice aligned with your particular financial objectives. Important elements to examine when contrasting Certificates of Deposit involve:

• 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: Verify that the financial institution holds insurance from The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) for safeguarding deposits.

Additionally, digital financial institutions frequently offer more favorable interest rates, though it's important to be aware of any minimum deposit stipulations and related service charges. Selecting a bank over a brokerage firm may occasionally assist in circumventing superfluous costs.

Explore the services provided by digital financial institutions

Digital banks and financial technology firms frequently provide superior interest rates when contrasted with traditional national banks. Major financial corporations primarily generate income through the interest earned on lending, service charges, and investments in financial instruments.

In the interim, lesser financial institutions and digital financial technology firms draw in clients by offering appealing annual percentage yields on savings. Additionally, internet-based banks generally function with reduced operational expenses, enabling them to transfer superior percentages to their patrons.

Set up a CD ladder

CD ladders are attractive to individuals who value adaptability and don't wish to tie up their money for prolonged durations. By spreading your savings among certificates of deposit with varying end dates, you can achieve a balance between immediate access to funds and more favorable interest rates over the long haul.

For example, start by putting $3,000 into three Certificates of Deposit with different maturity dates (one-year, two-year, and three-year). When each CD reaches its maturity date, put the money back into a new three-year CD. This strategy provides yearly access to your money while taking advantage of the greater interest earned from the extended terms.

Various kinds of certificates of deposit

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

1. Brokered CDs are acquired and traded via brokerage accounts instead of directly from financial institutions like banks or credit unions. These instruments frequently provide greater annual percentage yields since they originate from banks and are subsequently distributed to brokerage firms.
2. Callable CDs incorporate a capability enabling the originating entity to end the CD prior to its scheduled expiration. Bondholders are reimbursed their initial investment and any interest accumulated until the redemption date should this provision be enacted.
3. Bump-up CDs permit you to ask for a greater APY should interest rates go up following the account's opening. Generally, you're able to modify the rate one or two times throughout the CD's duration.
4. No-penalty CDs penalties for withdrawing funds prior to the maturity date are not imposed. This particular kind is encountered less frequently and might provide reduced annual percentage yields when contrasted with Standard Certificates of Deposit.
5. Jumbo CDs necessitate a considerable initial investment, frequently beginning with $100,000 or exceeding that amount. These typically provide greater annual percentage yields compared to conventional certificates of deposit.
6. Variable-rate CDs offer an annual percentage yield that fluctuates based on current interest rate conditions. These certificates of deposit involve greater exposure compared to conventional CDs, as a decline in interest rates prior to their maturity date could lead to a reduced return.

A series focusing on daily CD rates, developed by ex-Coins2Day editor Cassie Bottorff. This particular installment has been revised by Glen Luke Flanagan, the Editor for Evergreen Content.