Key takeout
Yesterday’s new offer will allow CD shoppers to get an impressive 21-month locked 4.50% rate available from Penair Credit Union. Another 14 CDs also offer that rate. The nationally leading CD rate remains at 4.65% and is available for six months from the Technology Credit Union, while NewTek Bank is able to lock 4.60% for nine months. Alternatively, you can secure between 4.28% and 4.32% for 3-5 years. The Fed is unlikely to cut fees anytime soon, but the cuts could arrive later this year. So today’s top CD rates may be the best rates you’ll see for a while.
Below are the highlight rates available from partners, followed by details of the best CD rankings available nationwide.
4.50% for 6 months or until March 2027, 4.65%
Currently, the best CD rate in the country comes from Technology Credit Union, with APY guaranteed of 4.65% for six months. Lock in today and enjoy the price until early December. Alternatively, you can choose a 9 month certificate from NewTek Bank. This guarantees 4.60% APY until next spring.
Do you need other options? A large number of institutions offer 4.50%: three months from Poncebankdirect, a credit union and a vibrant credit union for one year, 21 months from Penair Credit Union, an offer announced yesterday. Penair CDs will lock rates until March 2027.
All federal insured agencies are equally protected
FDIC Bank or NCUA Credit Union deposits are federally insured. That is, if an agency is unlikely to fail, it is protected by the US government. Not only that, the coverage is the same – deposits are insured up to $250,000 per person and $250,000 per institution, even at the size of banks and credit unions.
Consider long-term CDs and guarantee even more apy in the future
Want to lock a long rate at a slightly lower rate? With a 30-month offer from Genisys Credit Union, which guarantees a 4.32% APY, you can increase your savings until December 2027.
Savers who can take money for longer may prefer a major four- or five-year certificate. You can get a 4.28% rate from the Lafayette Federal Credit Union for four years. In fact, Lafayette promises the same 4.28% APY on all certificates from 7 months to 5 years, and can secure that rate until 2030.
Multi-year CDs could be smart now given the potential for Fed rate reductions in the second half of 2025 and perhaps even in 2026. The central bank could fully lower the federal funding rate last fall, potentially resuming rate cuts in the coming months. Reducing interest from the Fed will lower your bank’s APY, but the CD rate you secure now will be yours until it matures.
Today’s best CDs still pay a historically high return
It is true that CD rates are no longer at their peak. But despite the pullback, the best CDs still offer great returns. In October 2023, the highest CD rate was pushed to 6% in a short time, but today’s main rate is 4.65%. But compare it to early 2022 and before the Federal Reserve embarks on a fast, creepy rate hiking campaign. The best CDs in the country could earn money from the APY ranged from just 0.50% to 1.70%, depending on the duration.
Jumbo CDs beat regular CDs in four terms
Jumbo CDs require much larger deposits and sometimes you pay premium fees, but not always. In fact, today’s best jumbo CD rates pay only the highest standard rate in 4 of the eight CD terms tracked. This means it’s wise to always check both types of products when shopping for CDs, and if the best rate option is a standard CD, then simply open it with a jumbo size deposit.
The institution offers higher jumbo rates in the following terms:
18 Months: Hughes Federal Credit Union pays 4.50% on a 17-month Jumbo certificate and 4.30% on a standard 18-month CD. 3 Years: Hughes Federal Credit Union offers 4.34% on 3 Year Jumbo CDs and 4.32% at the highest standard rate. 4th year: Lafayette Federal Credit Union offers 4.33% on Jumbo CDs for four years and 4.28% at the highest standard rate. 5 Years: Both GTE Financial and Lafayette Federal Credent Union offer 4.33% on the Jumbo 5 Year CD and 4.28% at the highest standard rate.
Meanwhile, for the one-year period, the top standard CDs and jumbo CDs pay the same rate of 4.50% APY.
Where are the CD rates heading in 2025?
In December, the Federal Reserve announced its third cut in federal fund rates at many meetings, reducing the total amount since September. However, following the announcement last month, the central bank has chosen to maintain a stable rate at all three of its 2025 meetings so far.
Last year’s Fed’s interest rate cuts represent a pivot from the central bank’s historic 2022-2023 rate hiking campaign, with the committee actively raising interest rates to combat decades of inflation. At its peak in 2023, the federal fund rate rose to its highest level since 2001, staying for nearly 14 months.
The Fed’s move is important for savers as the Fed’s cuts in funding rates push down the fees banks and credit unions are willing to pay consumers for deposits. Both the CD rate and savings account fee reflect these changes in the Fed fund rate.
What exactly happens with federal fund rates in 2025 and 2026 is because tariff activities from the Trump administration have suspended the Fed’s course as policymakers await clear data. However, with more Fed rate cuts potentially coming later this year, today’s CD rates could be the best they could have for a while. Now is the wise time to lock the best rates that fit your personal timeline.
Daily rankings of the best CDs and savings accounts
We update these rankings weekly each year to provide the best deposit fees available.
important
The “highest rate” cited here is the highest nationally available rate identified by Investopedia in a daily rate study of hundreds of banks and credit unions. This is very different from the national average. This includes all banks that offer CDs in that term. Therefore, the national average is always very low, with the top rates that can be discovered in shopping often being 5, 10, or 15 times higher.
How to find the best CD rate
Investopedia tracks rate data from over 200 banks and credit unions that provide CDs to customers nationwide each week, determining daily rankings of the highest course certificates in all key terms. To qualify for our list, the institution must be federal insurance (FDIC of the bank, NCUA of the credit union). The minimum initial deposit on a CD must not exceed $25,000, and the maximum specified deposit is not less than $5,000.
Banks must be available in at least 40 states. Also, some credit unions require that you donate to a specific charity or association if you do not meet other eligibility criteria (for example, you do not live in a particular field or work in a certain type of work), but exclude credit unions with a donation requirement of $40 or more. Read our complete methodology for more information on how to choose the best price.
