Invest in CDs now to get up to 4.18% APY. Here are the best CD rates for Dec. 18, 2025

The highest CD rates on the market offer up to 4.18% annual percentage yield. By funding a certificate now, you could secure these high rates for years, depending on the choice of a CD term that best suits your goals. And, with the possibility of the Fed cutting rates again in 2026, there’s no time to lose.

The best CD rates on December 18, 2025: Earn up to 4.18%

The highest CD rate of 4.18% is offered by Citibank on its three-month CD. But, note that the rates Citi offers on its CDs can vary based on location, so some savers may prefer to look at the six-month CD from Northern Bank Direct with its 4.15% APY.

Coins2Day monitors the top rates offered by leading U.S. Financial institutions to help our readers obtain the best possible return on their CD investments. Here are the best available rates:

Compare CD rates at top national banks

If you’re unfamiliar with the banks listed in the table above, there’s a good reason. The big banks depend less on certificates of deposit to build their capital base than smaller financial institutions. That means they see less need to compete by offering the highest rates.

Established banks like Chase, PNC, and U.S. Bank acquire customers via business lines like loans and credit cards. As a result, CD interest rates offered by these banks are often lower compared to those available at smaller regional banks or online institutions. Securing a competitive rate at big banks may require opening additional deposit accounts or meeting higher minimum deposit requirements.

CD rates news 2025

Seasoned investors know that CD market rates closely track the monetary policy decisions of the Federal Reserve, particularly changes in the fed funds rate. Anyone who wants to invest in CD should learn to keep an eye on central bank policy changes in order to understand shifts in CD yields.

The Federal Open Market Committee (FOMC) left the federal funds rate unchanged from January through August of 2025. Then the FOMC announced a quarter percentage point rate cut in September, and two more of the same amount in October and December. The Fed’s benchmark rate now stands at 3.50%-3.75%.

There’s another FOMC meeting scheduled for Jan. 27-28.

In 2024, the Fed cut rates three times, ending on 4.25%-4.50%. These changes came in response to cooling U.S. Inflation, and the Fed aimed to support the U.S. Economy with cheaper lending. This is largely why CD rates came off their previous two-decade highs last year.

Those historically high CD yields were driven by aggressive Fed interest rate hikes in 2022 and 2023. Between March 2022 and July 2023, the FOMC hiked rates 11 times, from zero up to a range of 5.25%-5.50%. The Fed’s higher rates were an attempt to cool off the hottest inflation readings since the 1980s, which were themselves the result of economic disruptions from the pandemic.

It’s worth noting that current CD rates aren’t far off their recent peaks. Investors still have the opportunity to secure competitive rates on both short-term and long-term CDs. By depositing a larger lump sum into your CD account, you can generate considerable interest earnings.

Historical CD rates

In the early 1980s, CD rates soared into the double digits, a sharp contrast to lower yields in 2025. By 2019, however, the APY for a five-year CD was only a hair above 3.00%.

Throughout the early 2020s, rates soared over 5.00% as the economy worked its way through the Covid-19 pandemic. Five years later, we are seeing CD rates stabilize in the 3.00%-4.00% range.

How to get a good CD rate

Determining what qualifies as a “good” CD rate involves striking the right balance between high rates and your appetite for locking up money for a long period of time. Say you’re looking at a 5-year certificate yielding 5.00% APY. You should only pull the trigger if you’re sure you won’t need the funds sooner and you don’t think interest will increase.

Key factors to evaluate when comparing CDs include:

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

Online banks typically advertise the highest CD yields, just make sure you understand the minimum balance requirements and any associated fees. Opting for a bank rather than a broker can sometimes help avoid unnecessary charges.

Look into offerings from online banks

Fintech firms and online banks generally offer more competitive rates than national banks. Large financial institutions generate revenue from interest on loans, fees, and investments in securities.

In contrast, smaller banks and online fintech companies attract customers with competitive APYs on deposit accounts. Additionally, online banks have lower overhead costs, which lets them pay better rates on deposits.

Set up a CD ladder

CD ladders are ideal for savers who prefer not to tie up funds for long periods. By spreading savings across CDs with varying maturity dates, you can enjoy both short-term access and higher long-term interest rates.

For example, start by investing $3,000 in three staggered CDs (1-year, 2-year, and 3-year). As each CD reaches maturity, reinvest the funds into a new 3-year CD. This strategy provides yearly access to your money along with the accumulated interest.

Understand the different kinds of CDs

There are several types of CDs available to cater to different financial needs:

• Brokered CDs are purchased and sold through brokerage accounts rather than directly from banks or credit unions. They often provide higher APYs since they are issued by banks and then sold to brokerages.
• 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.
• 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.
• 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.
• Jumbo CDs require a substantial minimum deposit, often starting at $100,000 or more. They generally offer higher APYs than standard CDs.
• 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.