You still have an opportunity to achieve good profits with a certificate of deposit, but it's important 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 yields being significantly lower than their previous peak levels.
TL;DR
- Best CD rates offer up to 4.18% APY, with Citibank providing the top yield.
- Federal Reserve rate reductions in 2024 and 2025 have lowered average CD yields.
- Consider term length, APY, minimum deposit, penalties, and deposit insurance when comparing CDs.
- Online financial institutions and CD ladders can help maximize earnings and provide fund access.
At present, the best CD rates provide as much as 4.18% annual percentage yield. Should you deposit funds into a certificate of deposit now, you might secure a superior rate for an extended period, contingent upon the duration that best aligns with your fiscal aims.
The top CD rates available today offer returns as high as 4.18%.
Citibank is providing the top CD yield of 4.18% for its 3-month CD. Keep in mind that the rates Citi provides could differ based on where you live, so some individuals might want to look at MYSB Direct and Bread Savings as alternatives.
Coins2Day tracks the premier interest rates provided by Major American banks to assist readers in maximizing their earnings from Certificates of Deposit. Below are the most competitive CD rates currently 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
Examine the certificate of deposit rates offered by leading financial institutions nationwide.
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 regional banks or online financial services.
CD rates news 2025
CD purchasers ought to recognize that prevailing interest rates are strongly linked to pronouncements from The Federal Reserve, particularly adjustments to the fed funds rate. Keeping abreast of the Fed's interest rate strategy is crucial for individuals putting funds into certificates of deposit.
In 2024, the Federal Reserve implemented three reductions to interest rates, concluding with a December adjustment that established the federal funds rate between 4.25% and 4.50%. This monetary easing was undertaken to bolster economic activity, coinciding with a decline in inflation following its post-pandemic escalation. Consequently, rates for Certificates of Deposit (CDs) retreated from their elevated levels.
During its gathering on September 16-17, 2025, the Federal Reserve implemented the year's initial interest rate reduction, subsequently enacting 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 a decline in yields around the period these reductions were put into effect.
One additional Fed meeting remains on this year's schedule, slated for December 9-10. Deposit rates might decline further should 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 following the pandemic. Between March 2022 and July 2023, the Federal Open Market Committee implemented eleven rate adjustments, elevating the federal funds rate from zero to 5.25%-5.50%. This move by the nation's central bank was a response to inflation climbing at rates not seen since the 1980s.
Current certificate of deposit rates are still quite close to their recent peaks. Savers have a chance to lock in appealing yields for both shorter and longer durations. By depositing a significant sum into your CD, you can accumulate considerable earnings.
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Historical CD rates
During the initial years of the 1980s, certificates of deposit (CDs) saw their interest rates climb to double-digit figures, a significant divergence from 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 marginally surpassed 3.00%.
During the initial years of the 2020s, the highest rates generally stayed under 1.00% APY. More recently, rates experienced a substantial 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 Certificate of Deposit (CD) rate requires weighing the top interest rates offered against how long you're prepared to keep your funds deposited for a set period.
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 can occasionally assist in bypassing superfluous costs.
Explore the services provided by digital financial institutions
Digital banks and financial technology firms typically provide more attractive interest rates compared to major national banks. Major financial corporations primarily generate income through the interest earned on lending, service charges, and investments in financial instruments.
Conversely, smaller financial institutions and digital financial technology firms draw in clients by offering attractive annual percentage yields on savings. Furthermore, internet-based banks generally function with reduced operational expenses, enabling them to transfer superior interest rates to their patrons.
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 maturity schedules allows you to enjoy both immediate access to funds and more favorable interest rates over the long haul.
For example, if you put $3,000 into three Certificates of Deposit that mature at different times (one year, two years, and three years). When each CD comes due, you have the option to reinvest the money into a fresh 3-year CD. This strategy provides yearly access to your funds and any interest earned.
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.