Safeguard your capital with Certificates of Deposit now and achieve up to 4.18% annual percentage yield. Explore the leading CD returns for December 4, 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 potential for one more Fed rate cut this year, there’s no time to lose.

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

Citibank is providing the top CD yield of 4.18% on its 3-month certificate of deposit. Keep in mind that the yields Citi provides for its CDs might differ based on where you live, so some individuals might prefer to select the 6-month CD from Bread Savings, which has a 4.15% APY.

Coins2Day keeps track of the highest interest rates provided by major U.S. Banks to assist our audience in maximizing their earnings on Certificates of Deposit. Below are the most advantageous rates currently available:

Examine the certificate of deposit rates offered by leading financial institutions nationwide.

You might not recognize the banks detailed in the table above, and there's a solid explanation for that. Major financial institutions rely to a lesser extent on certificates of deposit for their capital funding compared to smaller firms. Consequently, they perceive less urgency to engage in competition by providing the most attractive interest rates.

Major financial institutions such as Chase, PNC, and U.S. Bank attract new clients through their various services, including lending and credit card offerings. Consequently, the certificate of deposit (CD) yields provided by these larger banks tend to be less attractive than those found at more localized or internet-based financial entities. To obtain a favorable rate from a major bank, customers might need to establish supplementary savings accounts or satisfy more substantial initial deposit thresholds.

CD rates news 2025

Experienced financiers are aware that Certificate of Deposit market rates closely follow the monetary policy choices made by The Federal Reserve, especially modifications to the fed funds rate. Individuals interested in investing in CDs ought to familiarize themselves with monitoring central bank policy shifts to grasp fluctuations in CD returns.

The Federal Open Market Committee (FOMC) maintained the federal funds rate at its current level from January until August 2025. Subsequently, during its session on September 16-17, the FOMC declared a reduction of one-quarter of a percentage point, adjusting the federal funds rate to 4.00%-4.25%. The fed funds rate is presently at 3.75%-4.00% following a decrease at the central bank's October gathering.

There's one more FOMC meeting scheduled for this year, on Dec. 9-10.

During 2024, the Federal Reserve implemented three reductions in interest rates, with the final adjustment occurring at the FOMC gathering in December, resulting in rates being set between 4.25% and 4.50%. These policy shifts were a reaction to decelerating inflation within the United States, as the central bank sought to bolster the nation's economic performance through more affordable borrowing. Consequently, certificate of deposit (CD) rates retreated from their peak levels seen over the past twenty years.

The exceptionally elevated Certificate of Deposit returns were a consequence of the Federal Reserve's assertive increases to interest rates during 2022 and 2023. From March 2022 through July 2023, the Federal Open Market Committee implemented 11 rate adjustments, elevating them from zero to a bracket of 5.25%-5.50%. These elevated rates by The Fed were intended to temper the most significant inflation figures observed since the 1980s, which were themselves precipitated by economic disturbances stemming from the pandemic.

It's important to mention that current certificate of deposit (CD) yields are not significantly lower than their recent highs. Individuals can still obtain attractive rates for both brief and extended CD terms. By placing a substantial sum into your CD account, you have the potential to earn significant interest.

Historical CD rates

During the initial years of the 1980s, certificates of deposit (CDs) offered interest rates that climbed into the double figures, a significant divergence from the diminished returns seen currently. Nevertheless, by the year 2019, the annual percentage yield (APY) for a CD with a five-year term was barely over 3.00%.

During the initial years of the 2020s, interest rates climbed past 5.00% while the economy navigated the challenges of the Covid-19 pandemic. Now, five years onward, certificate of deposit rates are settling between 3.00% and 4.00%.

How to get a good CD rate

Figuring out what constitutes a "good" CD rate requires finding the optimal compromise between elevated rates and your willingness to commit funds for an extended duration. For instance, if you're considering a 5-year certificate offering 5.00% APY, you should proceed only if you're confident you won't require access to the money before maturity and you anticipate no rise in interest rates.

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: Confirm that the financial institution is insured by The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) to safeguard your funds.

Digital financial institutions often promote the most attractive CD returns; however, it's crucial to grasp the minimum deposit stipulations and any related service charges. Choosing a direct bank over an intermediary might occasionally help you sidestep superfluous expenses.

Explore the services provided by digital financial institutions

Companies specializing in financial technology and digital banking typically provide more favorable interest rates compared to major, established banks. Major banking corporations earn their profits through the interest collected on loans, various service charges, and their holdings in securities.

Conversely, smaller financial institutions and digital financial technology firms draw in clients by offering appealing annual percentage yields on savings. Furthermore, internet-based banks incur reduced operational expenses, enabling them to provide more favorable interest rates for deposits.

Set up a CD ladder

CD ladders are an excellent choice for individuals who wish to avoid committing their money for extended durations. By distributing savings among certificates of deposit with different expiration dates, you can benefit from both immediate availability and superior interest rates over the long haul.

Begin by allocating $3,000 across three Certificates of Deposit with staggered maturity dates: one for 1 year, one for 2 years, and one for 3 years. When each CD matures, redeploy the principal and any earned interest into a fresh 3-year CD. This approach ensures you can access your funds annually, along with the interest that has accrued.

Comprehend the various types of CDs

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

• Brokered CDs are acquired and traded via brokerage accounts instead of directly from financial institutions. They frequently offer superior APYs because they originate from banks and are subsequently distributed to brokerages.
• Callable CDs feature is incorporated, enabling the issuing entity to end the CD prior to its scheduled maturity. Should this provision be enacted, investors will be reimbursed their principal sum along with any interest accumulated until the redemption date.
• Bump-up CDs enable you to seek a greater APY should interest rates rise subsequent to establishing the account. Generally, you're able to modify the rate one or two times throughout the CD's duration.
• No-penalty CDs early withdrawals prior to the maturity date won't incur penalties. This particular kind is encountered less frequently and might provide reduced annual percentage yields when contrasted with standard certificates of deposit.
• Jumbo CDs necessitate a considerable initial deposit, frequently beginning with $100,000 or exceeding that amount. These typically provide greater annual percentage yields compared to regular Certificates of Deposit.
• Variable-rate CDs feature an annual percentage yield that fluctuates based on current interest rate conditions. These certificates of deposit involve greater risk compared to standard CDs, as a drop in interest rates before 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.