Secure 4.18% Annual Percentage Yield: Top Certificates of Deposit as of December 9, 2025

The best CD rates offers an annual percentage yield of up to 4.18%. This presents an opportunity to secure elevated interest rates for an extended period by funding a certificate of deposit presently, contingent upon the duration aligning with your fiscal objectives. With markets forecasting a potential additional reduction in the Fed's benchmark rate at the upcoming session, prompt action is advisable.

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 rates Citi provides might differ depending on where you are situated.

Coins2Day tracks the highest yields presented by major U.S. 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

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

There's a simple explanation if you don't recognize many of the financial institutions listed. Certificates of Deposit generally don't produce significant revenue for large banking corporations by themselves.

Major, nationwide financial institutions such as Chase, PNC, and U.S. Bank prioritize drawing in clients with higher-yield offerings, like personal loans and credit cards, over Certificates of Deposit. Consequently, the annual percentage yields on CDs from these establishments frequently fall considerably short of rates found at more modest community banks or digital-only providers. Furthermore, to qualify for a favorable rate with these bigger banks, you might need to establish additional savings accounts or commit substantially larger initial deposits.

CD rates news 2025

Savers should understand that typical Certificate of Deposit yields tend to move up and down in direct correlation with adjustments in the Federal Reserve's economic strategy, particularly variations in the federal funds rate. It's vital for individuals putting money into CDs to keep track of the central bank's policy movements to foresee possible yield adjustments.

The Federal Reserve implemented three reductions to the federal funds rate over the past year, resulting in a range of 4.25%-4.50% by December 2024. As inflationary pressures from the period following the pandemic subsided, the monetary authority adjusted rates downward to support economic stability. Consequently, certificate of deposit yields declined from their highest levels in twenty years following the Fed's rate cuts.

The elevated CD yields, reaching 20-year peaks, stemmed from The Federal Reserve's aggressive interest rate increases during 2022 and 2023. The pandemic's economic turmoil fueled inflation at levels not seen since the early 1980s. From March 2022 through July 2023, the Fed implemented 11 rate hikes, moving the benchmark rate from zero to 5.25%-5.50% in an effort to curb rising prices.

Following a period of maintaining interest rates throughout much of 2025, the Federal Reserve ultimately reduced the federal funds rate to 4.00%-4.25% during its September 16-17 gathering, subsequently lowering it to 3.75%-4.00% at its October 28-29 session.

The Federal Open Market Committee (FOMC) is holding its last meeting this year now, Dec. 9-10.

Interest rates for Certificates of Deposit (CDs) remain close to their highest levels, offering an opportunity to secure favorable terms for both brief and extended periods. By investing a more substantial sum in your CD, you can realize significant returns on your interest.

Historical CD rates

During the initial years of the 1980s, certificates of deposit yielded interest rates exceeding ten percent, a significant difference from current yields. By the year 2019, however, the annual percentage yield for a five-year CD stood slightly above 3.00%.

During the initial years of the 2020s, the highest rates typically remained under 1.00% APY. A recent phase of increasing rates occurred, where the most attractive options for 1-year CDs surpassed 5.00% APY. These figures are now starting to decline somewhat, yet they continue to be considerably elevated compared to the period before the pandemic.

How to get a good CD rate

Establishing a “good” CD yield involves weighing the most attractive rate against your capacity to commit funds for the duration. For instance, a 5.00% APY CD spanning five years may prove unsuitable if you require earlier access to your money or if interest rates increase, resulting in a diminished profit. Typically, yields surpassing the national average are considered advantageous. It's advisable to examine offerings from various financial institutions for your preferred term to identify the most favorable choice.

Key factors to evaluate when comparing CDs include:

• Term length: Ensure it matches your savings goals and timeline.
• APY: Higher rates are usually offered for longer terms.
• Penalties: Understand the costs associated with early withdrawals.
• Minimum deposit: Ensure you meet the required minimum balance.
• Deposit insurance: Confirm coverage through the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).

Additionally, digital financial institutions commonly provide more favorable interest rates—however, verify any minimum deposit stipulations and related charges. Selecting a bank over a brokerage firm could potentially help you bypass superfluous charges.

Explore the services provided by digital financial institutions

Digital banks and financial technology firms (fintechs) commonly provide more favorable rates compared to traditional banks. Major financial corporations primarily earn income from loan interest, service charges, and investments in financial instruments.

Alternatively, smaller financial institutions and digital finance firms draw in new patrons by providing attractive annual percentage yields on savings accounts. Furthermore, internet-based banks typically incur reduced operational expenses, allowing them to extend more favorable terms to their clientele.

Set up a CD ladder

CD ladders are a great choice for individuals hesitant to commit their funds for extended durations. By distributing savings among CDs with different maturity dates, you can benefit from both immediate access and more favorable long-term interest rates.

You might consider putting $3,000 into three Certificates of Deposit with varying maturity dates: one for one year, one for two years, and one for three years. Each time a CD reaches its maturity date, you could put that money into a new three-year CD. This approach allows you to access your funds annually, along with any accumulated interest.

Various kinds of CDs that you ought to be aware of

Different types of CDs serve various needs:

• Brokered CDs are acquired and traded via brokerage accounts, as opposed to directly from financial institutions like banks or credit unions. Brokerage-issued certificates of deposit generally provide superior annual percentage yields compared to conventional CDs, stemming from their issuance by banks and subsequent sale to brokerage firms.
• Callable CDs feature a call option enabling the issuing entity to end the CD prior to its scheduled maturity. Should this option be utilized, investors will be reimbursed their principal sum along with any interest accumulated up to the designated call date.
• Bump-up CDs permit you to ask for a greater APY should interest rates increase subsequent to your account's establishment. Typically, you can modify the rate one or two times throughout the CD's duration.
• No-penalty CDs there are no charges for withdrawing funds prior to the maturity date. This particular kind is not frequently encountered and might provide reduced annual percentage yields compared to standard certificates of deposit.
• Jumbo CDs necessitate a substantial initial sum, frequently commencing at $100,000 or above. These typically provide superior annual percentage yields compared to conventional certificates of deposit.
• Variable-rate CDs offer an annual percentage yield that fluctuates based on current interest rate conditions. These certificates of deposit involve greater risk compared to conventional CDs, as a decline in interest rates prior to their maturity date could result in 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.