Top CD rates today: May 2, 2025 | Top APY remains 4.40%

Like a savings account, a certificate of deposit (CD) is an account where you can stash some of your savings, usually risk free, and earn a nominal amount of interest. A CD differs in that it offers a fixed interest rate for the duration of its term. If you enroll in a CD at a time before interest rates fall, your CD’s rate remains the same for its term. What’s more, a CD rate can be higher than the rate on a standard savings account, although a CD usually requires that you commit your cash for the entire term, with early withdrawals resulting in a penalty.

Today, the leading APY across CD terms remains 4.40 percent, which is available on some shorter terms between three months and one year. Longer terms continue to earn slightly lower top APYs than shorter ones. In all, competitive CD rates remain well above national averages and continue to outpace the rate of inflation.

The table below shows top CD rates for the most common terms, as well as national averages and the amount you can earn in interest with a $10,000 deposit.

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%	1.43%	$10,000	$108
6-month	Bread Savings	4.40%	1.91%	$1,500	$218
9-month	CIBC Bank USA	4.31%	N/A	$1,000	$322
1-year	Popular Direct	4.40%	2.01%	$10,000	$440
18-month	TAB Bank	4.16%	2.23%	$1,000	$630
2-year	SchoolsFirst Federal Credit Union	4.15%	1.76%	$500	$847
3-year	America First Credit Union	4.15%	1.68%	$500	$1,297
4-year	America First Credit Union	4.20%	1.80%	$500	$1,789
5-year	Synchrony Bank	4.15%	1.68%	$0	$2,255

Note: Annual percentage yields (APYs) shown are as of May 2, 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 open a CD account today

Once you’ve found the bank or credit union where you want to open your CD, you are ready to submit your application. Typically, you can do this online by navigating to the CD page and clicking on “Open a CD” or “Get Started”. Some institutions may require you to open a CD in a branch. Note that at credit unions, CDs are often referred to as share certificates.

You will need to enter personal information as you do when opening any bank account, including your name, Social Security number and contact information. You may also need a driver’s license or other identification for verification.

Once your account is open, it’s time to fund your account with at least the minimum balance required. You’ll also choose how to receive your interest disbursements – either reinvest the interest in your CD over time to take advantage of compound growth or receive interest payments directly.

Learn more: How to open a CD

What is the impact of inflation on monetary policy?

After holding the Federal Reserve's key benchmark rate steady since July 2023 to combat high inflation, officials cut the federal funds rate by a combined total of one percentage point, or 100 basis points, in three rate-setting meetings in late 2024. The rate cuts came at a time when the consumer price index (CPI), a measure of inflation, had been decreasing significantly from its decades-high annual rate of 9.1 percent in June 2022. In late 2024 and early 2025, inflation started to tick back up, although in recent months it’s been decreasing and currently stands at 2.4 percent. Policymakers have held the federal funds rate steady so far in 2025.

"The economy is strong overall and has made significant progress toward our goals over the past two years," Fed Chair Jerome Powell said in remarks following the Federal Open Market Committee meeting on March 19. "Labor market conditions are solid, and inflation has moved closer to our 2 percent longer-run goal, though it remains somewhat elevated."

The current rate of inflation is a significant factor that affects what the Fed decides to do with rates. A decrease in the federal funds rate, say close to or below the current inflation rate of 2.4 percent, can be bad for savers. Namely, it can translate to lower APYs on many CDs and savings accounts. Meanwhile, a fed rate cut can be good for borrowers as interest rates tend to decrease on loans.

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 tends to 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".

• Research methodology

  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.