Key takeout
CD rates were generally reduced in 2025, but surprise high yield transactions are still emerging. Over the past month, eight CDs have raised APY and claimed best status. Seven of these top rates are still available. The Fed is likely several months away from the reduction rate, keeping the highest CD rates in its holding pattern primarily. To stand out in the almost flat CD market, some banks and credit unions have chosen to raise their fees to attract attention and new deposits.
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The Fed is not running, but some outstanding CDs have it
At the end of 2024, the Federal Reserve pushed the federal funding rate to a 23-year high by July 2023, beginning to reverse the historic rate hiking campaign that had been kept there for 14 months. Then, from September to December last year, the Fed tripled to 3x, cutting the benchmark rates all down.
These reductions have begun to fine-tune the rates of certificates of deposits (CDs). However, the Fed quickly shifted gears and neutralized its rate policy. The central bank has met three times so far in 2025, but has yet to make any additional moves. As a result, the country’s top CD rates have been flattened, waiting for a clear signal that more rate reductions are on the horizon.
However, in a stable rate environment, some banks and credit unions use quiet ones. By increasing the yield of one or more CDs, you can attract attention.
Over the past month we’ve seen this play on eight different CDs that have increased enough ratings to lead this term. National rates jumped from 4.50% to 4.65% for a short time, with top yields improving over the 6 months to 5 years. Seven of these eight certificates are still available, including current national leaders who are paying 4.60% APY.
More CD deals can pop up, but it’s wise to jump when you see what you like
The Federal Reserve Pricing Committee will hold a June meeting today with prices scheduled for tomorrow afternoon. However, according to CME Group’s FedWatch tool, we believe the market odds are virtually certain as the Fed is stable again. In fact, traders are currently putting an odds of around 85% at another pause at the July 29-30 meeting.
This suggests that the Fed rate is mid-September. This means that CD rates could remain relatively calm for another 2-3 months. Still, as several CDs stood out in the busy sector last month, other banks and credit unions may follow suit in the coming weeks.
But that’s not necessarily a reason to hold back. The Fed is expected to lower the rate by perhaps half a point, or even more, before it closes before 2025. And as soon as the cut is imminent, the CD rate increases the pace of the decline.
So, instead of waiting for an outstanding CD deal, it is wise to lock a strong rate when you see what you like.
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 savings and CD rates
Every day, Investopedia tracks rate data from over 200 banks and credit unions that provide CDs and savings accounts to customers across the country, determining daily rankings of the best ing accounts. To qualify for our list, the institution must be federal insurance (FDIC in the bank, NCUA in the credit union) and the minimum initial deposit in the account must not exceed $25,000. Additionally, you cannot specify a maximum deposit amount of less than $5,000.
To qualify for national availability, 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 area 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.
