Top CD rates today: June 4, 2025 | Earn up to 4.49% APY
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Key takeaways
- The current leading CD rate across terms is 4.49 percent APY, offered for a six-month CD.
- Some CDs out-earn high-yield savings accounts, although most CDs charge a fee for early withdrawals.
- When shopping around, you can find rates two times the national averages on some terms.
A certificate of deposit (CD) can be a useful tool for earning interest on your funds as you save for your financial goals. Things to consider before opening a CD include the annual percentage yield (APY), how much money you wish to deposit and whether you’re able to lock in the funds for the duration of the CD’s term.
For today, the highest APY across CD terms is 4.49 percent, which is available on a six-month term from First Internet Bank of Indiana, requiring a $1,000 minimum deposit. You’ll find that many shorter terms are earning higher yields than longer ones in the current rate environment.
Check out Bankrate’s table below for the highest APY on CD terms from three months to five years, as well as approximately how much $10,000 would earn for each term.
Today's CD rates by term
| Term | Institution | Highest APY | National average APY | Minimum deposit | Estimated earnings on $10,000 |
|---|---|---|---|---|---|
| 3-month | Popular Direct | 4.40% | 1.45% | $10,000 | $108 |
| 6-month | First Internet Bank of Indiana | 4.49% | 1.94% | $1,000 | $222 |
| 9-month | CIBC Bank USA | 4.31% | N/A | $1,000 | $322 |
| 1-year | First Internet Bank of Indiana | 4.40% | 2.00% | $1,000 | $440 |
| 18-month | TAB Bank | 4.16% | 2.24% | $1,000 | $630 |
| 2-year | Popular Direct | 4.15% | 1.78% | $10,000 | $847 |
| 3-year | Popular Direct | 4.15% | 1.70% | $10,000 | $1,297 |
| 4-year | Popular Direct | 4.15% | 1.84% | $10,000 | $1,766 |
| 5-year | Popular Direct | 4.20% | 1.72% | $10,000 | $2,284 |
Note: Annual percentage yields (APYs) shown are as of June 4, 2025. APYs for some products may vary by region.
N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.
How to take advantage of current CD rates
Yields on competitive CDs have been relatively stable this year, although many shorter-term CDs are offering yields comparable to high-yield savings accounts. A fixed-rate CD’s advantage over a variable-rate savings account is that the CD guarantees you’ll earn the same APY until it matures.
Many shorter-term CDs are currently earning higher APYs than longer ones, yet one way to get the best of both worlds is through a CD ladder. This involves opening multiple CDs of varying term lengths. This way, some of your money will earn the top short-term rates, while the remainder will benefit from a guaranteed rate for a longer timeframe.
"Employing [the CD ladder] approach allows you to strike a balance between liquidity (i.e. access to funds) and yields at different terms to help mitigate the risk associated with timing the rate environment," says Derik Farrar, head of personal deposits at U.S. Bank.
CD glossary
Here are some terms you’ll likely come across when choosing a CD.
- Add-on CD: An add-on CD enables you to make additional deposits after your initial investment. This feature affords more flexibility than traditional CDs, which only allow one deposit at the beginning of the term.
- Annual percentage yield (APY): A percentage that indicates how much interest a CD earns in one year, which takes into account the effect of compounding.
- Brokered CD: A type of CD issued by a bank but sold through a brokerage firm or other financial institution.
- Bump-up CD: Also known as a “raise-your-rate CD,” a bump-up CD provides savers with the option to increase the CD’s APY without having to change its term. Generally, only one rate increase is allowed during its term.
- CD ladder: An investment strategy that involves purchasing multiple CDs with varying maturity dates to provide liquidity and take advantage of higher rates.
- Early withdrawal penalty: A fee charged if funds are withdrawn from a CD before the maturity date. Penalties often range anywhere from 90 days to 365 days’ worth of interest.
- Grace period: A specific time after the maturity date during which an account holder can make changes to the CD without penalties. A grace period typically ranges from five to 14 days.
- IRA CD: A CD that’s held within an individual retirement account.
- Jumbo CD: A CD that has a high minimum balance requirement, typically $100,000, sometimes as low as $95,000. This type of CD may offer a higher interest rate than regular CDs with the same term.
- Minimum opening deposit: The lowest amount of money required to open a CD account, which can vary by institution. Some institutions don’t have a minimum deposit requirement.
- No-penalty CD: A type of CD that allows you to withdraw your money without facing a penalty while providing a fixed APY.
- Promotional CD: Also known as a bonus or special CD, it’s a CD with an above average APY. These may be offered by banks and credit unions as a way to obtain new customers.
- Share certificate: At credit unions, CDs are often referred to as "share certificates".