As of today, April 25, 2025, certificate of deposit (CD) rates remain strong, with some offering as much as 5.02% APY, depending on the term. Whether you’re looking to lock in a short-term savings goal or commit to a longer investment, CD rates are trending high, providing solid returns for savers who are willing to keep their funds untouched for a set period.
Best CD Rates by Term: What to Expect
The highest CD rates vary by term length, with online banks and credit unions continuing to lead the way in offering competitive yields. Here’s a breakdown of today’s top rates for various terms:
3-Month CDs: For those seeking flexibility, the highest rates for 3-month CDs are currently at 4.72%, well above the average rate of 1.3%. This short-term option is ideal for those needing access to their funds sooner.
6-Month CDs: Offering a balance between yield and liquidity, 6-month CDs are available with rates up to 4.94%. The national average for this term is around 1.78%, so it’s clear that some financial institutions are offering excellent returns.
1-Year CDs: The 1-year CD is a popular choice among savers looking to lock in a good rate. The highest rate on a one-year CD is 5.02%, a solid return for a relatively short commitment. The average APY is still relatively low at 1.84%, so it’s wise to shop around for the best deal.
2-Year and 3-Year CDs: The highest rate for a 2-year CD is 4.52%, and for a 3-year CD, it’s 4.27%. The average APY for both remains lower at around 1.66% and 1.58%, respectively.
5-Year CDs: If you’re comfortable locking your funds for five years, you can find rates as high as 4.26%, but the average remains at 1.59%. Be mindful of the hefty early withdrawal penalties on long-term CDs, which can eat into your interest earnings.
Why Are Online Banks Offering the Best CD Rates?
Online banks and digital-only financial institutions typically offer the best CD rates. Without the overhead costs of maintaining physical branches, they are able to pass on these savings to their customers in the form of higher interest rates. For example, Marcus by Goldman Sachs is currently offering one of the best rates at 4.40% APY for a 14-month CD, with a low minimum deposit of $500. For comparison, traditional banks like Chase and Bank of America are offering rates that top out at around 4.00% for similar terms.
Should You Open a CD Now?
Whether or not a CD is right for you depends on your personal savings goals. While CD rates are attractive, they come with limitations. You must commit to keeping your funds in the account for the full term, or you’ll face early withdrawal penalties that could negate your interest. However, if you’re saving for a specific short- or medium-term goal and can afford to lock away your money for a set period, a CD could be a great option.
It’s also worth considering alternative savings vehicles like high-yield savings accounts or money market accounts, which offer more liquidity while still providing decent returns. However, if you’re looking for stability and a guaranteed return, a CD remains one of the safest options available. Plus, with the Federal Deposit Insurance Corporation (FDIC) insuring up to $250,000 per depositor in case the bank fails, your savings are protected.
While CD rates are currently competitive, they can vary widely between financial institutions. Online banks, credit unions, and even some traditional banks are offering attractive rates, but it’s essential to shop around to ensure you’re getting the best return. As always, make sure the CD term aligns with your financial goals and that you’re comfortable with the potential penalties for early withdrawal. Whether you’re interested in a short-term boost or a longer investment, today’s CD rates are offering solid returns in a low-risk environment.