10 Best CD Rates of 2025

May 9, 2025 - By 4idiotz

Table of Contents

Article Summary

This article discusses the benefits of Certificates of Deposit (CDs) as a savings option, which offer higher interest rates than traditional savings accounts in exchange for locking up funds for a set period of time. The article also explains the concept of CD laddering and provides a list of banks and credit unions offering the best CD rates in the market, as well as a guide on how these accounts work and how to choose the best one for you.

What This Means for You

CDs can provide a higher return on your savings than traditional savings accounts.
By understanding the terms and conditions of CDs, you can make an informed decision about whether this savings option is right for you.
CD laddering can help you take advantage of higher interest rates while maintaining access to some of your funds.
It’s important to compare rates and terms from different banks and credit unions to find the best CD for your needs.
Keep an eye on interest rate trends to determine the best time to lock in a CD rate.

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*Rates and APYs are subject to change. All information provided here is accurate as of April 30, 2025.

Investing in the stock market can allow your money to grow, but also involves risk. Storing your cash in a savings account doesn’t come with risk, but it also means the value of your funds will be eroded by inflation over time. Certificates of deposit (CDs) offer something in the middle.

These accounts offer annual percentage yields (APYs) that are higher than what you’ll see on many savings accounts, even high-yield savings accounts (HYSAs). In exchange for those higher rates, you’ll have to lock up your funds for a certain amount of time — typically between three months and five years. If you have money that you know you won’t need for the length of the term, putting it in a CD could be a good option.

Read on for our list of banks and credit unions offering the best CD rates in the market now, as well as a guide on how these accounts work and how to choose the best one for you.

What to know about CDs rates

The APYs on CDs change regularly as banks and credit unions tend to follow in the footsteps of the Federal Reserve when it comes to hiking and cutting interest rates. But once you open a CD, you’re locked in with that rate until the term expires — for better or worse.
While a CD’s interest rate is the percentage of interest you’d earn on the account, the APY is the interest you’d earn on that money in one year. APY is the more commonly referenced figure when it comes to CDs.
Online banks and credit unions are often able to offer higher CD rates, since they’re not paying the overhead of running physical branches. Credit unions, however, generally require you to become a member first.

How we chose our top picks

Our editors and writers assessed roughly 60 CD offerings from some of the largest and most popular commercial banks, credit unions and online banks. We collected CD rates for varying terms, as well as minimum balance requirements and special promotions.

Read our full methodology here.