Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS. For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.

Your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government. For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.

Are there fees associated with CDs?

CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.

What is considered a good CD rate?

A good CD rate is one that's higher than the national average – and in the current rate environment it should be outpacing inflation. The consumer price index (CPI) annual inflation rate was 3.0 percent for September, so your APY should be higher than that. In exchange for locking up your money, some banks will shell out higher rates for their CDs than their savings accounts. In other words, the bank may be willing to pay you more for the certainty that your money will remain in its hands for the designated length of time. For example, the national average APY for 1-year CDs is 1.92 percent as of December 05, 2025, while some top-yielding banks are currently offering one-year CDs with APYs above 4 percent.

Is an online bank the best choice for a CD?

Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.

How long can you leave money in a CD?

You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.

Do CDs have beneficiaries?

Banks generally give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take. If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.

Can you lose money on a CD?

As long as your CD is at an FDIC-insured bank or an NCUA-insured credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.

Best CD Rates Of December 2025 - Up to 4.25%

Best CD rates from top banks for December 2025

Note: APYs may have changed since they were last updated and may vary by region for some products. Bankrate only includes FDIC banks or NCUA credit unions in the editorial listings below.

Read review

LimelightBank

4.4 Bankrate CD score

Annual percentage yield

3.70% – 4.20%
Min. deposit to open

$1,000
Term

6 months - 3 years

Why LimelightBank?

Limelight Bank is an online bank based in Utah that offers its CDs nationwide. It has four CD terms: six months, one year, 18 months and three years. The rates are competitive and good for short-term saving needs, but you'll need to look elsewhere for longer-term investments.

Pros

Limelight Bank offers competitive yields on all of its CDs.
The early withdrawal penalties are pretty standard.
Cons

Limelight Bank offers only a few CD terms.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

LimelightBank

APY

National average APY

Term length

How do we get this data?

Term APY Min. deposit

6 months 4.20% APY $1,000

1 year 4.15% APY $1,000

18 months 3.90% APY $1,000

3 years 3.70% APY $1,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	LimelightBank APY APY last updated 12/2/2025. APY last updated 12/2/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/02/2025	3.70%	1.65%
11/04/2025	3.70%	1.66%
10/07/2025	3.70%	1.67%
08/12/2025	3.70%	1.68%
07/01/2025	3.80%	1.68%
06/03/2025	3.80%	1.70%
05/06/2025	3.75%	1.69%
04/01/2025	3.75%	1.65%
02/04/2025	3.75%	1.54%
01/07/2025	3.75%	1.43%
12/10/2024	3.75%	1.42%

Term	APY	Min. deposit
6 months	4.20% APY	$1,000
1 year	4.15% APY	$1,000
18 months	3.90% APY	$1,000
3 years	3.70% APY	$1,000

Read review

M.Y. Safra Bank

4.4 Bankrate CD score

Annual percentage yield

3.25% – 4.15%
Min. deposit to open

$500
Term

3 months - 5 years

Why M.Y. Safra Bank?

M.Y. Safra Bank’s sole branch is located in New York City, but it offers some online accounts nationwide, including its CDs. The standard CD terms range from three months to five years. They all earn competitive APYs and require a relatively low minimum opening deposit. You can also open a high-yield no-penalty CD, but it requires a larger minimum deposit and money that’s new to the bank.

Pros

All of the online CDs earn competitive APYs.
The standard online CDs require a minimum opening deposit of only $500.
The 13-month no-penalty CD earns a high yield.
Cons

The no-penalty CD’s minimum deposit requirement of $5,000 is high.

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Read review

Bread Savings

3.9 Bankrate CD score

Annual percentage yield

3.75% – 4.15%
Min. deposit to open

$1,500
Term

3 months - 5 years

Why Bread Savings?

Bread Savings offers nine CDs, ranging from three months to five years, all with strong yields. The minimum deposit to open one of the CDs is $1,500.

Pros

High APYs across many terms.
A solid range of CD terms — from three months to five years — are offered.
Cons

Specialty CDs such as no-penalty and bump-up CDs aren’t available.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Bread Savings

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Bread Savings APY APY last updated 12/2/2025. APY last updated 12/2/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/04/2025	3.75%	1.69%
10/13/2025	3.75%	1.70%
08/04/2025	3.85%	1.70%
07/01/2025	4.00%	1.70%
06/03/2025	4.00%	1.72%
05/06/2025	4.00%	1.70%
04/01/2025	4.00%	1.65%
02/18/2025	4.00%	1.54%
12/24/2024	3.85%	1.43%

Term	APY	Min. deposit
3 months	3.80% APY	$1,500
3 months	3.80% APY	$1,500
6 months	4.15% APY	$1,500
6 months	4.15% APY	$1,500
9 months	3.80% APY	$1,500
9 months	3.80% APY	$1,500
1 year	3.75% APY	$1,500
1 year	3.75% APY	$1,500
18 months	3.75% APY	$1,500
18 months	3.75% APY	$1,500
2 years	3.75% APY	$1,500
2 years	3.75% APY	$1,500
3 years	3.75% APY	$1,500
3 years	3.75% APY	$1,500
4 years	3.75% APY	$1,500
4 years	3.75% APY	$1,500
5 years	3.75% APY	$1,500
5 years	3.75% APY	$1,500

Read review

Synchrony Bank

4.5 Bankrate CD score

Annual percentage yield

0.25% – 4.10%
Min. deposit to open

$0
Term

3 months - 5 years

Why Synchrony Bank?

Synchrony Bank is an online-only bank that offers many regular CDs ranging from three months to five years. Synchrony stands out because there is no minimum deposit required to open its CDs. Synchrony also has a bump-up CD and IRA CDs.

Pros

Synchrony Bank offers many CD terms.
Many of the terms offer competitive yields.
No minimum opening deposit.
Cons

Synchrony doesn’t currently offer a no-penalty CD.

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Term	APY	Min. deposit
3 months	0.25% APY	No minimum
3 months	0.25% APY	No minimum
6 months	3.75% APY	No minimum
9 months	4.10% APY	No minimum
11 months	0.25% APY	No minimum
1 year	3.90% APY	No minimum
14 months	4.00% APY	No minimum
15 months	3.85% APY	No minimum
18 months	3.70% APY	No minimum
19 months	3.70% APY	No minimum
2 years	3.50% APY	No minimum
2 years	2.80% APY	No minimum
3 years	3.60% APY	No minimum
4 years	3.50% APY	No minimum
5 years	3.75% APY	No minimum

Read review

LendingClub

4.3 Bankrate CD score

Annual percentage yield

3.40% – 4.10%
Min. deposit to open

$500
Term

6 months - 5 years

Why LendingClub?

LendingClub Bank offers six terms of CDs, ranging from a six-month CD to a five-year CD. The interest rates for all terms are fairly competitive, and all require a minimum deposit of $500. For CDs with terms of one year or less, the penalty is 90 days simple interest; you can find banks that have harsher penalties.

Pros

Rates are competitive.
LendingClub offers all the most common terms of CDs, which could be handy for creating a CD ladder.
Cons

The bank doesn't offer any specialty CDs.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

LendingClub

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	LendingClub APY APY last updated 12/2/2025. APY last updated 12/2/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/04/2025	3.40%	1.69%
07/01/2025	3.40%	1.70%
06/03/2025	3.40%	1.72%
05/06/2025	3.40%	1.70%
04/01/2025	3.40%	1.65%
03/04/2025	3.40%	1.55%
02/04/2025	3.40%	1.54%
12/10/2024	3.40%	1.43%

Term	APY	Min. deposit
6 months	3.90% APY	$500
8 months	4.10% APY	$500
10 months	3.50% APY	$500
1 year	3.50% APY	$500
18 months	3.50% APY	$500
2 years	3.50% APY	$500
5 years	3.40% APY	$500

Read review

Marcus by Goldman Sachs

4.5 Bankrate CD score

Annual percentage yield

3.85% – 4.10%
Min. deposit to open

$500
Term

6 months - 6 years

Why Marcus by Goldman Sachs?

Marcus by Goldman Sachs offers CD terms ranging from six months to six years, and the minimum required opening deposit of $500 is lower than what some other banks require. The rates are competitive for most terms. In addition to standard CDs, the online-only bank offers high-yielding no-penalty CDs and a rate bump CD. Marcus' CD penalties are generally on the lower end, compared with those at competing banks.

Pros

Competitive yields across most terms.
The bank offers high-yielding specialty CDs: a rate bump CD and three no-penalty CDs.
Cons

No CD terms are longer than six years.

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Term	APY	Min. deposit
6 months	4.05% APY	$500
7 months	3.90% APY	$500
9 months	4.00% APY	$500
11 months	3.95% APY	$500
1 year	4.00% APY	$500
13 months	3.95% APY	$500
14 months	4.10% APY	$500
18 months	4.00% APY	$500
20 months	3.90% APY	$500
2 years	3.95% APY	$500
3 years	3.90% APY	$500
4 years	3.85% APY	$500
5 years	3.90% APY	$500
6 years	3.90% APY	$500

Read review

Alliant

4.3 Bankrate CD score

Annual percentage yield

3.10% – 4.10%
Min. deposit to open

$1,000
Term

3 months - 5 years

Why Alliant?

Alliant offers a range of CD term lengths from three months to five years, and all of them carry strong APYs. The range of term lengths offered makes Alliant a good place to build a CD ladder. All CDs require $1,000 to open (or $75,000 if you opt for a jumbo CD, which can have a slightly higher APY). Anyone can join Alliant Credit Union; membership is not restricted.

Pros

Alliant CDs come with competitive yields.
There’s a solid range of CD terms to choose from.
Cons

While a $1,000 deposit for a CD is relatively standard, some banks have lower minimum opening deposit requirements.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Alliant

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Term	APY	Min. deposit
3 months	3.10% APY	$1,000
6 months	4.10% APY	$1,000
1 year	4.00% APY	$1,000
18 months	3.60% APY	$1,000
2 years	3.60% APY	$1,000
3 years	3.60% APY	$1,000
4 years	3.65% APY	$1,000
5 years	3.65% APY	$1,000

Read review

Sallie Mae

3.9 Bankrate CD score

Annual percentage yield

3.50% – 4.10%
Min. deposit to open

$2,500
Term

6 months - 5 years

Why Sallie Mae?

Sallie Mae offers 11 terms of CDs, including some lengths that aren’t available at other banks. A minimum opening deposit of at least $2,500 is required, but savers with that much to invest will be rewarded with some of the best rates available.

Pros

The bank’s rates are competitive.
Sallie Mae offers a wide variety of CD terms.
Cons

Minimum deposit requirements are on the high side.
No specialty CDs, like no-penalty CDs, available.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Sallie Mae

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Sallie Mae APY APY last updated 12/2/2025. APY last updated 12/2/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/05/2025	4.00%	1.69%
10/08/2025	3.90%	1.70%
09/16/2025	3.80%	1.70%
07/08/2025	4.00%	1.70%
07/01/2025	3.80%	1.70%
06/03/2025	3.80%	1.72%
05/06/2025	3.80%	1.70%
04/01/2025	3.80%	1.65%
03/04/2025	3.80%	1.55%
02/04/2025	3.80%	1.54%
12/24/2024	3.55%	1.43%
12/10/2024	3.75%	1.43%

Term	APY	Min. deposit
6 months	3.90% APY	$2,500
9 months	4.10% APY	$2,500
11 months	3.90% APY	$2,500
1 year	4.00% APY	$2,500
13 months	3.95% APY	$2,500
15 months	4.10% APY	$2,500
18 months	3.95% APY	$2,500
2 years	3.50% APY	$2,500
30 months	3.80% APY	$2,500
3 years	3.90% APY	$2,500
5 years	4.00% APY	$2,500

Read review

Discover Bank

4.5 Bankrate CD score

Annual percentage yield

2.00% – 4.05%
Min. deposit to open

$0
Term

3 months - 10 years

Why Discover Bank?

Discover® Bank offers 12 terms of CDs. They range from a three-month CD to a 10-year CD. There is no minimum deposit to open these CDs.

Pros

Wide variety of CD terms, especially long-term CDs.
Cons

For some terms, you can find higher rates elsewhere.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Discover Bank

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Term	APY	Min. deposit
3 months	2.00% APY	No minimum
6 months	3.50% APY	No minimum
9 months	3.50% APY	No minimum
1 year	4.05% APY	No minimum
18 months	3.70% APY	No minimum
2 years	3.50% APY	No minimum
30 months	3.50% APY	No minimum
3 years	3.50% APY	No minimum
4 years	3.50% APY	No minimum
5 years	3.50% APY	No minimum
7 years	3.50% APY	No minimum
10 years	3.50% APY	No minimum

Read review

First National Bank of America

4.1 Bankrate CD score

Annual percentage yield

3.65% – 4.05%
Min. deposit to open

$1,000
Term

3 months - 6 years

Why First National Bank of America?

First National Bank of America is a Michigan-based bank that offers its CDs online nationwide. And its CD rates are competitive across many terms. You can open a CD with a $1,000 minimum deposit, and you have your pick of terms from three months all the way up to 10 years.

Pros

Competitive yields on its CDs.
Wide range of term lengths available, from three months to 10 years.
Cons

Early withdrawal penalties are on the steeper side here.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

First National Bank of America

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	First National Bank of America APY APY last updated 12/2/2025. APY last updated 12/2/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/02/2025	3.80%	--
04/04/2025	3.90%	--
01/22/2025	3.81%	--

Term	APY	Min. deposit
3 months	3.85% APY	$1,000
6 months	3.85% APY	$1,000
7 months	4.05% APY	$1,000
1 year	3.95% APY	$1,000
18 months	3.81% APY	$1,000
2 years	3.70% APY	$1,000
3 years	3.65% APY	$1,000
4 years	3.65% APY	$1,000
5 years	3.75% APY	$1,000
6 years	3.80% APY	$1,000

Read review

Salem Five Direct

4.1 Bankrate CD score

Annual percentage yield

2.00% – 4.01%
Min. deposit to open

$2,500
Term

6 months - 5 years

Why Salem Five Direct?

Salem Five Direct, established in 1995 as an online division of Salem Five Bank, offers what they call “Special CDs” ranging from one to five years. At $10,000, the minimum balance to open one of these CDs is higher than what many other online banks require. The bank's Special CD offerings are more competitive for shorter-term CDs than longer-term ones. Salem Five Direct's early withdrawal penalties are different from most other banks. Instead of days’ worth of interest, it charges you a percent of the balance that you withdraw.

Pros

The shorter-term special CDs earn high yields.
Cons

Relatively steep minimum balance to open a CD.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Salem Five Direct

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Salem Five Direct APY APY last updated 11/4/2025. APY last updated 11/4/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/04/2025	2.25%	1.69%
07/01/2025	2.25%	1.70%
06/03/2025	2.25%	1.72%
05/06/2025	2.25%	1.70%
04/01/2025	2.25%	1.65%
03/04/2025	2.25%	1.55%
02/04/2025	2.25%	1.54%
12/10/2024	2.25%	1.43%

Term	APY	Min. deposit
6 months	3.01% APY	$2,500
9 months	4.01% APY	$10,000
1 year	3.50% APY	$10,000
18 months	3.50% APY	$10,000
2 years	3.50% APY	$10,000
30 months	2.00% APY	$10,000
3 years	2.00% APY	$10,000
4 years	2.25% APY	$10,000
5 years	2.25% APY	$10,000

Read review

Capital One

4.4 Bankrate CD score

Annual percentage yield

3.60% – 3.90%
Min. deposit to open

$0
Term

1 year - 5 years

Why Capital One?

Capital One offers CDs with terms as short as six months or as long as five years. These CDs have no minimum opening deposit and the bank offers competitive yields.

Pros

No minimum opening deposit.
Wide variety of terms.
Cons

No specialty CDs, like a no-penalty CD, are available.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Capital One

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
3 months	3.25% APY	$500
6 months	3.85% APY	$500
9 months	4.15% APY	$500
1 year	3.85% APY	$500
13 months	3.80% APY	$5,000
18 months	3.85% APY	$500
2 years	3.85% APY	$500
3 years	3.75% APY	$500
4 years	3.75% APY	$500
5 years	3.80% APY	$500

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Capital One APY APY last updated 12/4/2025. APY last updated 12/4/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/04/2025	3.60%	1.69%
11/03/2025	3.50%	1.69%
10/22/2025	3.50%	1.70%
09/11/2025	3.60%	1.70%
07/21/2025	3.75%	1.70%
07/01/2025	3.50%	1.70%
06/03/2025	3.50%	1.72%
05/19/2025	3.50%	1.70%
04/01/2025	3.50%	1.65%
03/04/2025	3.50%	1.55%
02/04/2025	3.50%	1.54%
12/10/2024	3.50%	1.43%

Term	APY	Min. deposit
1 year	3.90% APY	No minimum
18 months	3.75% APY	No minimum
2 years	3.60% APY	No minimum
30 months	3.60% APY	No minimum
3 years	3.60% APY	No minimum
4 years	3.60% APY	No minimum
5 years	3.60% APY	No minimum

Recent news on CD rates

At their Oct. 29 rate-setting meeting, Federal Reserve officials cut the federal funds rate by 25 basis points, or a quarter percentage point. They had also cut the rate by the same amount in September. Until then, the Fed had held rate steady throughout 2025 after a few cuts in late 2024 that totaled 100 basis points. The federal funds rate now stands at a range of 3.75-4.00 percent.

Within the current rate cycle, top CD rates peaked in the fourth quarter of 2023 for one-year and five-year CDs. However, competitive CD rates are still higher than the national average CD rates. What's more, high-yielding CD rates continue to outpace the rate of inflation. The Consumer Price Index (CPI) rose 3.0 percent on an annual basis for September.

This means savers still have the opportunity to open a CD that's outpacing inflation and may continue to outpace long-term inflation expectations. With that said, nobody really knows whether inflation will stay around this level.

Learn more: CD rate forecast

National average interest rates for CDs

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average. Here are the current average rates as of Dec 5, according to Bankrate's most recent survey of institutions:

CD term	CD national average APY
1 year	1.92%
2 year	1.71%
3 year	1.65%
4 year	1.77%
5 year	1.69%

Bankrate made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.

BANKRATE EXPERT FAQ

What our industry experts are saying

Taylor Kovar

CFP, founder and CEO of 11 Financial

Even with the Fed trimming rates by a quarter point, CD yields remain relatively steady for now. Banks usually move quickly when the Fed makes a change, so the offers available today may not last. For anyone holding extra cash, it might be worth looking at CDs that align with their goals before rates begin to shift.

Current promotional CD rates

Some banks run promotional CDs, which might have certain restrictions to earn the advertised rate. For instance, you might have to bring money from outside the bank to be eligible for this APY.

Bank name	CD product	APY
U.S. Bank	5-month	3.35%
Bank of America	7-month	3.51%
Wells Fargo	7-month	3.49%
PenFed Credit Union	15-month	3.10%

These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The CD may renew for a different term. The promotional offers are as of Nov. 25.

Compare top CD rates today by term

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top-yielding CDs by term.

Institution	APY	Min. deposit
Bask Bank	4.00% APY	$1,000
Texas Capital Bank	3.90% APY	$1,000
Popular Direct	3.90% APY	$10,000

Institution	APY	Min. deposit
LimelightBank	4.20% APY	$1,000
Bread Savings	4.15% APY	$1,500
Alliant	4.10% APY	$1,000

Institution	APY	Min. deposit
LimelightBank	4.15% APY	$1,000
Discover Bank	4.05% APY	No minimum
Morgan Stanley Private Bank	4.00% APY	No minimum

Institution	APY	Min. deposit
The Federal Savings Bank	3.95% APY	$5,000
Marcus by Goldman Sachs	3.90% APY	$500
Sallie Mae	3.90% APY	$2,500

Institution	APY	Min. deposit
Sallie Mae	4.00% APY	$2,500
Marcus by Goldman Sachs	3.90% APY	$500
The Golden 1 CU	3.80% APY	$500

Note: Annual percentage yields (APYs) shown were updated between Nov. 28 and Dec. 4. Bankrate's editorial team validates this information regularly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

How to choose the best CD for you

The top three things to look for when choosing a CD are:

You can find CDs that are outpacing current inflation in this rate environment. A competitive yield helps your balance grow over time through interest earned compounding.
You’ll want to assess when you’ll need this money so that you try and avoid paying an early withdrawal penalty.
You want to know the worst-case scenario if you have to make an early withdrawal.

Learn more: What is a CD?

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit.

If you withdraw from a CD before it matures, the early withdrawal penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose an early withdrawal penalty of 90 days of simple interest on a one-year CD.

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money, and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

No-penalty CDs — also known as liquid CDs — allow you to withdraw your money early without being charged a penalty.

A bank may require that you wait at least some time after opening a no-penalty CD — generally around seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility just in case.

Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

Who should get a CD?

A CD could be right for you if:

you want to earn a consistent, fixed yield on a lump sum of cash that you don’t need to touch for the length of the term.
you need a barrier between you and your money, since you’ll likely pay an early withdrawal penalty for taking your funds out before the CD matures.
you have a specific timeframe in mind for when you think you’ll need this money. A six-month CD, for example, could be a good place to put your money aside for an insurance premium that’s due in eight months.

Learn more: How to build a CD ladder

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

Pros

Some CDs earn a higher APY than money market accounts or savings accounts.
CDs are a good place to store funds that you don’t want to be able to dip into too easily.
CDs can help you separate money for financial goals or future expenses.
Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.
A CD can diversify your savings plan with a guaranteed rate.
Your principal remains intact if you keep your money in a CD for the full term.

Cons

CDs tie up your money for a potentially long period of time.
Many CDs have early withdrawal penalties.
Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.
You could potentially earn better rates of return in the stock market or by investing in other securities, but you'll be opening up your money to more risk.

Alternatives to CDs

High-yield savings account

This account tends to earn a yield currently of about seven times higher than the national average. At online-only banks, these accounts often won’t have monthly service fees or minimum balance requirements.

Money market account

This is an interest-bearing account available at both banks and credit unions which is similar to a savings account but also offers some checking account features.

Short-term bond funds

These funds, be they exchange-traded funds (ETFs) or mutual funds, typically invest in government and corporate bonds. Short-term bond funds typically have durations of one to three and a half years, according to Fidelity.

Index funds

These funds are based on a preset basket of stocks, or index. They promise ownership of a wide variety of stocks, greater diversification and lower risk – usually all at a low cost.

CD FAQs

Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS.

For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.
Your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government.

For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.
CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.
A good CD rate is one that's higher than the national average – and in the current rate environment it should be outpacing inflation. The consumer price index (CPI) annual inflation rate was 3.0 percent for September, so your APY should be higher than that.

In exchange for locking up your money, some banks will shell out higher rates for their CDs than their savings accounts. In other words, the bank may be willing to pay you more for the certainty that your money will remain in its hands for the designated length of time.

For example, the national average APY for 1-year CDs is 1.92 percent as of December 05, 2025, while some top-yielding banks are currently offering one-year CDs with APYs above 4 percent.
Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.
You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.
Banks generally give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take.

If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.
As long as your CD is at an FDIC-insured bank or an NCUA-insured credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.

Meet our Bankrate experts

Written by

Matthew Goldberg Matthew Goldberg

Former Senior Consumer Banking Reporter

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best CD rates, we regularly survey CD offerings from the banks and credit unions that continually offer the most competitive CD rates. We also score these institutions on their CD offerings, including APY, minimum deposit requirements, term selection and more.

The banks and credit unions on this page are selected based on their CD APYs, minimum opening deposit requirements and Bankrate’s score for their CDs. Only banks and credit unions with broadly available CD offerings made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.

Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, Cash App, CFG Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, E*TRADE from Morgan Stanley, East West Bank, Emigrant Bank, Emigrant Direct Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Peak Bank, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, ZYNLO Bank

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Best CD rates of December 2025 (Up to 4.25%)

Why choose Bankrate

Best CD rates from top banks for December 2025

LimelightBank

Annual percentage yield

Min. deposit to open

Term

Why LimelightBank?

Pros and cons

Rate history for LimelightBank's CD accounts

Current LimelightBank CD Rates

M.Y. Safra Bank

Annual percentage yield

Min. deposit to open

Term

Why M.Y. Safra Bank?

Pros and cons

Current M.Y. Safra Bank CD Rates

Bread Savings

Annual percentage yield

Min. deposit to open

Term

Why Bread Savings?

Pros and cons

Rate history for Bread Savings's CD accounts

Current Bread Savings CD Rates

Synchrony Bank

Annual percentage yield

Min. deposit to open

Term

Why Synchrony Bank?

Pros and cons

Current Synchrony Bank CD Rates

LendingClub

Annual percentage yield

Min. deposit to open

Term

Why LendingClub?

Pros and cons

Rate history for LendingClub's CD accounts

Current LendingClub CD Rates

Marcus by Goldman Sachs

Annual percentage yield

Min. deposit to open

Term

Why Marcus by Goldman Sachs?

Pros and cons

Current Marcus by Goldman Sachs CD Rates

Alliant

Annual percentage yield

Min. deposit to open

Term

Why Alliant?

Pros and cons

Rate history for Alliant's CD accounts

Current Alliant CD Rates

Sallie Mae

Annual percentage yield

Min. deposit to open

Term

Why Sallie Mae?

Pros and cons

Rate history for Sallie Mae's CD accounts

Current Sallie Mae CD Rates

Discover Bank

Annual percentage yield

Min. deposit to open

Term

Why Discover Bank?

Pros and cons

Rate history for Discover Bank's CD accounts

Current Discover Bank CD Rates

First National Bank of America

Annual percentage yield

Min. deposit to open

Term

Why First National Bank of America?

Pros and cons

Rate history for First National Bank of America's CD accounts

Current First National Bank of America CD Rates