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 an NCUSIF-insured credit union, 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. Just make sure you’re not exceeding the insurance limits. 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 No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.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 depends on a few factors, but the true answer depends on your personal financial situation. If you need to access your money in a year, for example, your best CD options will be those with a one-year term or less. Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time. Compare CD rates to the national average to make sure you’re getting a competitive return. For example, the national average APY for 1-year CDs is 2 percent as of May 14, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.25 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 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 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 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 May 2025 - Up to 4.41%

Best CD rates from top banks for May 2025

Note: 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 editorial listings.

Read review

Rising Bank

4.5 Bankrate CD score

Annual percentage yield

2.70% – 4.41%
Min. deposit to open

$1,000
Term

6 months - 3 years

Why Rising Bank?

Rising Bank offers five standard CDs in terms between six months and three years, and the shorter terms earn highly competitive APYs. The bank also offers three bump-up CDs that allow you to raise the rate if rates increase during the term, at which time you can also add funds to the account.

Pros

The shorter-length terms earn top-notch rates.
Specialty CDs are offered, including a two-year jumbo CD and three bump-up CDs.
Cons

There aren't any CD terms longer than three years and the yields on the two- and three- year CDs aren't as competitive.

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.

Rising Bank

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	Rising Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
05/05/2025	2.75%	1.68%
04/01/2025	2.75%	1.65%
02/04/2025	2.75%	1.54%
01/07/2025	2.75%	1.43%
10/01/2024	2.75%	1.41%
09/03/2024	2.75%	1.42%
08/06/2024	2.75%	1.43%
07/23/2024	2.75%	1.41%
07/02/2024	3.85%	1.41%
06/04/2024	3.85%	1.42%
05/14/2024	3.85%	1.41%

Read review

Popular Direct

4.0 Bankrate CD score

Annual percentage yield

3.90% – 4.40%
Min. deposit to open

$10,000
Term

3 months - 5 years

Why Popular Direct?

Popular Direct is an online bank that offers CDs in eight terms, ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs, though it does offer a savings account with a competitive rate.

Pros

Popular Direct consistently offers competitive rates across its CDs.
Cons

Popular Direct has a $10,000 minimum deposit to open.
The bank doesn't offer specialty CDs like bump-up or no-penalty 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.

Popular Direct

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	Popular Direct APY APY last updated 5/14/2025. APY last updated 5/14/2025	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.
05/06/2025	4.05%	1.69%
04/16/2025	4.05%	1.65%
04/01/2025	4.15%	1.65%
03/04/2025	4.15%	1.55%
02/18/2025	4.15%	1.54%
02/04/2025	4.20%	1.54%
01/07/2025	4.10%	1.43%
12/03/2024	4.25%	1.42%
11/05/2024	3.35%	1.42%
10/22/2024	3.45%	1.42%
10/01/2024	3.55%	1.42%
09/24/2024	3.65%	1.43%
09/17/2024	3.85%	1.43%
09/03/2024	3.95%	1.43%
08/20/2024	3.95%	1.44%
08/13/2024	4.00%	1.44%
08/06/2024	4.30%	1.44%
07/02/2024	4.30%	1.42%
06/04/2024	4.30%	1.43%
05/14/2024	4.30%	1.42%

Term	APY	Min. deposit
3 months	4.40% APY	$10,000
6 months	4.40% APY	$10,000
1 year	4.40% APY	$10,000
18 months	4.00% APY	$10,000
2 years	4.05% APY	$10,000
3 years	4.00% APY	$10,000
4 years	3.90% APY	$10,000
5 years	4.05% APY	$10,000

Read review

Texas Capital Bank

4.5 Bankrate CD score

Annual percentage yield

4.20% – 4.35%
Min. deposit to open

$1,000
Term

3 months - 1 year

Why Texas Capital Bank?

Texas Capital Bank has a few CD terms with highly competitive APYs. The bank only has branches in Texas and New York, but its CDs can be opened and managed online. You can choose from six CD terms at Texas Capital, ranging from one month to two years. The minimum deposit to open a CD is $1,000. Texas Capital Bank also offers two savings accounts, although the one with a competitive APY is only available to applicants with a Texas residential address.

Pros

Texas Capital Bank's CDs earn competitive APYs.
Cons

No CD terms are offered that are longer than 24 months so longer-term savers will have to look 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.

Texas Capital Bank

APY

National average APY

Term length

How do we get this data?

Term APY Min. deposit

3 months 4.35% APY $1,000

6 months 4.20% APY $1,000

9 months 4.25% APY $1,000

1 year 4.30% 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.	Texas Capital Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
05/06/2025	4.10%	2.00%
04/29/2025	4.10%	1.97%
04/01/2025	4.40%	1.97%
03/04/2025	4.40%	1.86%
02/04/2025	4.40%	1.85%
05/14/2024	5.00%	1.80%

Term	APY	Min. deposit
3 months	4.35% APY	$1,000
6 months	4.20% APY	$1,000
9 months	4.25% APY	$1,000
1 year	4.30% APY	$1,000

Read review

Bask Bank

4.5 Bankrate CD score

Annual percentage yield

4.00% – 4.35%
Min. deposit to open

$1,000
Term

3 months - 2 years

Why Bask Bank?

Bask Bank offers six CD terms, all on the shorter side. These terms range from three months to two years. You’ll need at least $1,000 to open a CD at Bask Bank. Those looking for longer term CD will have to look elsewhere. You’ll also need to look at other banks for other types of CDs, such as a no-penalty CD.

Pros

Bask Bank offers competitive yields on all of its CDs.
The minimum opening deposit is the same as or lower than some banks.
Cons

Bask Bank doesn’t offer terms longer than two years.
Bask Bank doesn’t offer any specialty CDs, such as a no-penalty 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.

Bask Bank

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	Bask Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
05/06/2025	4.00%	1.77%
04/22/2025	4.00%	1.74%

Term	APY	Min. deposit
3 months	4.35% APY	$1,000
6 months	4.20% APY	$1,000
9 months	4.25% APY	$1,000
1 year	4.30% APY	$1,000
18 months	4.00% APY	$1,000
2 years	4.00% APY	$1,000

Read review

CIBC Bank USA

4.6 Bankrate CD score

Annual percentage yield

3.01% – 4.31%
Min. deposit to open

$1,000
Term

6 months - 30 months

Why CIBC Bank USA?

CIBC Bank USA offers seven online-only CDs, called Agility CDs, with terms ranging from six months to 30 months, and each requires a $1,000 minimum deposit. The withdrawal penalty for CIBC's CDs is one of the lowest around: All CDs have a penalty of 30 days of simple interest. Comparatively, other banks may charge 180 days or more of interest for a two-year CD. In addition to Agility CDs, the bank also offers jumbo CDs, which require a $100,000 minimum deposit, and an IRA CD.

Pros

CIBC’s CDs earn rates that are highly competitive.
The early withdrawal penalty is only 30 days worth of interest, which is lower than what many other banks charge.
Cons

Comparatively, CIBC has a limited selection of CD terms, with none longer than 30 months.

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.

CIBC Bank USA

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	CIBC Bank USA APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
04/15/2025	3.01%	--
09/24/2024	3.50%	--
09/17/2024	4.00%	--

Term	APY	Min. deposit
6 months	4.31% APY	$1,000
9 months	4.31% APY	$1,000
1 year	4.01% APY	$1,000
13 months	4.06% APY	$1,000
18 months	3.76% APY	$1,000
2 years	4.01% APY	$1,000
30 months	3.01% APY	$1,000

Read review

Synchrony Bank

4.9 Bankrate CD score

Annual percentage yield

0.25% – 4.25%
Min. deposit to open

$0
Term

6 months - 5 years

Why Synchrony Bank?

Synchrony Bank offers many regular CDs ranging from three months to five years. Synchrony stands out because there is no minimum deposit required to open one of its CDs. If you're interested in specialty CDs, Synchrony has those too in the form of a no-penalty and bump-up CD.

Pros

Synchrony Bank offers many CD terms.
It offers a competitive yield, and it doesn’t require a minimum opening deposit.
Cons

Partial withdrawals on the no-penalty CD are not allowed.

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.

Synchrony Bank

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	Synchrony Bank APY APY last updated 4/28/2025. APY last updated 4/28/2025	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.
04/01/2025	4.15%	1.65%
03/04/2025	4.15%	1.55%
02/04/2025	4.15%	1.54%
01/16/2025	4.15%	1.43%
01/07/2025	4.00%	1.43%
10/01/2024	4.00%	1.42%
09/03/2024	4.00%	1.43%
08/02/2024	4.00%	1.44%
07/02/2024	4.00%	1.42%
06/04/2024	4.00%	1.43%
05/14/2024	4.00%	1.42%

Term	APY	Min. deposit
6 months	3.70% APY	$0
9 months	3.90% APY	$0
11 months	0.25% APY	$0
1 year	4.00% APY	$0
13 months	4.25% APY	$0
16 months	4.00% APY	$0
18 months	3.80% APY	$0
2 years	3.50% APY	$0
3 years	4.00% APY	$0
4 years	3.50% APY	$0
5 years	4.15% APY	$0

Read review

Marcus by Goldman Sachs

4.9 Bankrate CD score

Annual percentage yield

3.75% – 4.25%
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 charge. The rates are competitive for most terms. In addition to standard CDs, the online-only bank offers no-penalty CDs and a bump-rate CD.

Pros

Marcus CDs earn competitive yields.
A rate bump CD and three no-penalty CDs are offered.
Cons

No CD terms are longer than six years.

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.

Marcus by Goldman Sachs

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	Marcus by Goldman Sachs APY APY last updated 5/14/2025. APY last updated 5/14/2025	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.
01/16/2025	3.75%	--
12/13/2024	3.65%	--
11/08/2024	3.60%	--
10/03/2024	3.75%	--
06/10/2024	3.90%	--

Term	APY	Min. deposit
6 months	4.20% APY	$500
9 months	4.20% APY	$500
1 year	4.10% APY	$500
14 months	4.25% APY	$500
18 months	4.00% APY	$500
2 years	3.95% APY	$500
3 years	3.90% APY	$500
4 years	3.75% APY	$500
5 years	3.75% APY	$500
6 years	3.75% APY	$500

Read review

Limelight Bank

4.4 Bankrate CD score

Annual percentage yield

3.75% – 4.25%
Min. deposit to open

$1,000
Term

6 months - 3 years

Why Limelight Bank?

Limelight Bank offers CD terms of six months, one year, 18 months and three years. The rates are fairly competitive, and this mix of terms gives customers some flexibility to find a CD that matches their short-term saving needs. All of Limelight’s CDs require at least $1,000 to open. The bank doesn’t offer any specialty CDs, such as bump-up or no-penalty CDs.

Pros

Limelight Bank offers competitive yields on its CDs.
The early withdrawal penalties are pretty standard and definitely not harsh compared to what some other banks impose.
Cons

Limelight Bank offers only a few CDs, so you may need to look elsewhere if you’re looking for a particular term, especially longer terms.
Limelight CDs aren’t suited for building a CD ladder.
The bank doesn’t offer any specialty CDs, such as no-penalty 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.

Limelight Bank

APY

National average APY

Term length

How do we get this data?

Term APY Min. deposit

6 months 4.25% APY $1,000

1 year 4.20% APY $1,000

18 months 4.00% APY $1,000

3 years 3.75% 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.	Limelight Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
05/06/2025	3.75%	1.68%
04/01/2025	3.75%	1.65%
02/04/2025	3.75%	1.54%
01/07/2025	3.75%	1.43%
11/19/2024	3.75%	1.41%
10/08/2024	3.95%	1.41%
10/01/2024	4.00%	1.41%
09/24/2024	4.00%	1.42%
09/03/2024	4.15%	1.42%
08/20/2024	4.15%	1.43%
08/06/2024	4.25%	1.43%
07/02/2024	4.25%	1.41%
06/04/2024	4.25%	1.42%
05/14/2024	4.25%	1.41%

Term	APY	Min. deposit
6 months	4.25% APY	$1,000
1 year	4.20% APY	$1,000
18 months	4.00% APY	$1,000
3 years	3.75% APY	$1,000

Read review

TAB Bank

4.1 Bankrate CD score

Annual percentage yield

3.81% – 4.21%
Min. deposit to open

$1,000
Term

1 year - 5 years

Why TAB Bank?

Tab Bank offers six CD terms ranging from one year to five years, which makes it a good option for opening up a CD ladder. Rates on all the terms offered are competitive, with the highest APYs offered for the shorter-term CDs. You'll need $1,000 to open a CD.

Pros

The CD yields are highly competitive.
Cons

While TAB Bank offers a lot of the standard CD terms, it doesn’t offer terms shorter than one year.

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.

TAB Bank

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	TAB Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
05/06/2025	3.81%	1.69%
04/01/2025	3.81%	1.65%
03/04/2025	3.81%	1.55%
02/04/2025	3.81%	1.54%
01/07/2025	3.81%	1.43%
12/03/2024	3.87%	1.42%
10/01/2024	3.25%	1.42%
09/10/2024	3.75%	1.43%
09/03/2024	4.00%	1.43%
08/06/2024	4.00%	1.44%
07/02/2024	4.00%	1.42%
06/04/2024	4.00%	1.43%
05/14/2024	4.00%	1.42%

Term	APY	Min. deposit
1 year	4.21% APY	$1,000
18 months	4.16% APY	$1,000
2 years	4.06% APY	$1,000
3 years	3.91% APY	$1,000
4 years	3.86% APY	$1,000
5 years	3.81% APY	$1,000

Read review

First Internet Bank of Indiana

4.1 Bankrate CD score

Annual percentage yield

3.72% – 4.20%
Min. deposit to open

$1,000
Term

3 months - 5 years

Why First Internet Bank of Indiana?

First Internet Bank of Indiana is an online bank that serves all 50 states. It offers eight CD terms that range from three months to five years, all of which pay highly competitive rates. CDs require a minimum opening deposit of $1,000, which is lower than what some other banks require but could still be too high for some customers.

Pros

First Internet Bank of Indiana CDs pay top-notch rates. A wide range of CD terms are offered.
Cons

Lower minimum opening deposits can be found elsewhere. No specialty CD options are offered.

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 Internet Bank of Indiana

APY

National average APY

Term length

How do we get this data?

Term	APY	Min. deposit
6 months	4.41% APY	$1,000
1 year	4.30% APY	$1,000
15 months	4.10% APY	$1,000
18 months	4.15% APY	$5,000
2 years	3.20% APY	$1,000
26 months	3.15% APY	$10,000
3 years	2.75% APY	$1,000
3 years	2.70% APY	$25,000

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.	First Internet Bank of Indiana APY APY last updated 5/13/2025. APY last updated 5/13/2025	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.
05/13/2025	3.97%	1.69%
05/06/2025	3.65%	1.69%
04/01/2025	3.65%	1.65%
03/04/2025	3.65%	1.55%
02/04/2025	3.65%	1.54%
01/07/2025	3.65%	1.43%
12/31/2024	3.65%	1.42%
10/01/2024	3.67%	1.42%
09/24/2024	3.67%	1.43%
09/17/2024	4.09%	1.43%
09/03/2024	4.19%	1.43%
08/27/2024	4.24%	1.44%
08/13/2024	4.35%	1.44%
08/06/2024	4.50%	1.44%
07/02/2024	4.50%	1.42%
06/04/2024	4.50%	1.43%
05/14/2024	4.50%	1.42%

Term	APY	Min. deposit
3 months	3.72% APY	$1,000
6 months	4.15% APY	$1,000
1 year	4.20% APY	$1,000
18 months	4.00% APY	$1,000
2 years	3.93% APY	$1,000
3 years	3.97% APY	$1,000
4 years	3.97% APY	$1,000
5 years	3.97% APY	$1,000

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Recent news on CD rates

The Federal Reserve held rates steady for the third straight meeting on May 7. It also didn't change rates during its March and January 2025 meetings. Previously, the Fed cut rates by a total of 100 basis points — or one percentage point — at three meetings in late 2024. The federal funds rate continues to rest at a range of 4.25-4.5 percent.

Though CD rates have fallen since the Federal Reserve lowered rates in late 2024, 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.

When looking for a CD, seek a competitive interest rate, a term length that works for you and FDIC or NCUA insurance coverage. Also, familiarize yourself with early withdrawal penalties to avoid potentially losing money.

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 May. 14, according to Bankrate's most recent survey of institutions:

CD term	CD national average APY
1 year	2%
2 year	1.77%
3 year	1.69%
4 year	1.8%
5 year	1.7%

Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week 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

CD rates in 2025 are being shaped by a lot of moving parts. With tariffs back in the headlines and some uncertainty around what the Fed might do next, it’s definitely a time to pay attention. The Fed’s holding steady for now, but there’s still talk of possible cuts, and banks are staying competitive in the meantime. If locking in a CD is something you're considering, this could be a smart window. Rates may not stay this attractive if things shift later in the year.

Current promotional CD rates

Some banks have promotional CD rates, even some of the largest banks. There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)

Bank name	CD product	APY
U.S. Bank	5-month	4.00%
Bank of America	7-month	4.00%
Wells Fargo	7-month	3.75%
PenFed Credit Union	15-month	3.20%

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 April 23.

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
Popular Direct	4.40% APY	$10,000
Bask Bank	4.35% APY	$1,000
Bank5 Connect	4.00% APY	$500

Institution	APY	Min. deposit
Rising Bank	4.41% APY	$1,000
Salem Five Direct	3.45% – 4.40% APY	$2,500
Popular Direct	4.40% APY	$10,000

Institution	APY	Min. deposit
Sallie Mae Bank	4.40% APY	$2,500
Popular Direct	4.40% APY	$10,000
Rising Bank	4.30% APY	$1,000

Institution	APY	Min. deposit
Synchrony Bank	4.00% APY	$0
Bread Savings	4.00% APY	$1,500
Popular Direct	4.00% APY	$10,000

Institution	APY	Min. deposit
Synchrony Bank	4.15% APY	$0
Popular Direct	4.05% APY	$10,000
Bread Savings	4.00% APY	$1,500

Note: Annual percentage yields (APYs) shown were updated between May 7 and May 13. 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, and they also tend to have strict early withdrawal penalties.

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

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.

Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the 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 six or 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 in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.

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 is useful when you want to earn a consistent, fixed yield on your lump sum of cash over the term of your savings account, especially if interest rates are declining. It also encourages you to be disciplined in leaving your money untouched as it earns interest because a CD is a time deposit account and imposes an early withdrawal penalty if you withdraw your funds before the CD matures.

A good time to open a CD is when you have a lump sum of money that you want to sock away for a specific period of time in the hopes of consistently growing interest. Also, it’s worth opening a CD when you know you have a specific timeframe in mind 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.

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 an NCUSIF-insured credit union, 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. Just make sure you’re not exceeding the insurance limits.

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 depends on a few factors, but the true answer depends on your personal financial situation. If you need to access your money in a year, for example, your best CD options will be those with a one-year term or less.

Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time.

Compare CD rates to the national average to make sure you’re getting a competitive return. For example, the national average APY for 1-year CDs is 2 percent as of May 14, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.25 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 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 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 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, Senior Consumer Banking Reporter

Matthew is a senior consumer banking reporter with more than two decades of journalism and financial services expertise, helping readers make informed decisions about their personal finance needs. His banking career includes being a banker in New York City and a bank officer at one of the nation's largest banks. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), chairing its training member engagement committee and is co-chair of its Finance Committee.

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, Arvest 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, CFG Community 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, East West Bank, Emigrant 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, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, 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

Best CD rates of May 2025 (Up to 4.41%)

Current CD trends

Best CD rates from top banks for May 2025

Rising Bank

Annual percentage yield

Min. deposit to open

Term

Why Rising Bank?

Pros and cons

Rate history for Rising Bank's CD accounts

Current Rising Bank CD Rates

Popular Direct

Annual percentage yield

Min. deposit to open

Term

Why Popular Direct?

Pros and cons

Rate history for Popular Direct's CD accounts

Current Popular Direct CD Rates

Texas Capital Bank

Annual percentage yield

Min. deposit to open

Term

Why Texas Capital Bank?

Pros and cons

Rate history for Texas Capital Bank's CD accounts

Current Texas Capital Bank CD Rates

Bask Bank

Annual percentage yield

Min. deposit to open

Term

Why Bask Bank?

Pros and cons

Rate history for Bask Bank's CD accounts

Current Bask Bank CD Rates

CIBC Bank USA

Annual percentage yield

Min. deposit to open

Term

Why CIBC Bank USA?

Pros and cons

Rate history for CIBC Bank USA's CD accounts

Current CIBC Bank USA CD Rates

Synchrony Bank

Annual percentage yield

Min. deposit to open

Term

Why Synchrony Bank?

Pros and cons

Rate history for Synchrony Bank's CD accounts

Current Synchrony Bank CD Rates

Marcus by Goldman Sachs

Annual percentage yield

Min. deposit to open

Term

Why Marcus by Goldman Sachs?

Pros and cons

Rate history for Marcus by Goldman Sachs's CD accounts

Current Marcus by Goldman Sachs CD Rates

Limelight Bank

Annual percentage yield

Min. deposit to open

Term

Why Limelight Bank?

Pros and cons

Rate history for Limelight Bank's CD accounts

Current Limelight Bank CD Rates

TAB Bank

Annual percentage yield

Min. deposit to open

Term

Why TAB Bank?

Pros and cons

Rate history for TAB Bank's CD accounts

Current TAB Bank CD Rates

First Internet Bank of Indiana

Annual percentage yield

Min. deposit to open

Term

Why First Internet Bank of Indiana?