Top CD rates today: May 6, 2025 | Top APY is 4.40% ahead of Fed meeting

After having lowered interest rates by a combined one percentage point (100 basis points) between September and December 2024, Federal Reserve policymakers have held the federal funds rate steady so far in 2025. What’s more, they’re widely expected to leave rates untouched during their meeting this week.

With the Fed in a holding pattern, we’ve seen some stability in many high-yield certificate of deposit (CD) rates, some of which had decreased both before and after the most recent Fed rate cuts. Policymakers may change rates sometime in 2025, so locking in an annual percentage yield (APY) on a fixed-rate CD now could benefit you if rates on new CDs were to decrease further this year.

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 top 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	Bread Savings	4.40%	1.93%	$1,500	$218
9-month	CIBC Bank USA	4.31%	N/A	$1,000	$322
1-year	Popular Direct	4.40%	2.02%	$10,000	$440
18-month	TAB Bank	4.16%	2.24%	$1,000	$630
2-year	SchoolsFirst Federal Credit Union	4.15%	1.77%	$500	$847
3-year	America First Credit Union	4.15%	1.69%	$500	$1,297
4-year	America First Credit Union	4.20%	1.79%	$500	$1,789
5-year	Synchrony Bank	4.15%	1.70%	$0	$2,255

Note: Annual percentage yields (APYs) shown are as of May 6, 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.

Where to find the highest-paying CDs

As seen in our table above, all of the top-paying CDs are available from banks and credit unions that operate mostly or entirely online. Online-only financial institutions are known for offering higher yields than big brick-and-mortar banks. Common reasons for this are:

• Relatively new online-only banks may pay highly competitive yields as a way to attract customers. (Conversely, established brick-and-mortar banks that don’t have a strong need for new deposits generally don’t offer high APYs.)
• Financial institutions operating entirely online don’t bear the cost of maintaining branches, and some may pass along the savings to customers through higher yields.

Whether or not they maintain branches, credit unions are commonly a source of high yields. This is because they’re not-for-profit institutions, so profits are distributed to members through dividends.

Learn more: Are CDs worth it? Here's what experts say

What is the impact of inflation on monetary policy?

After holding the federal funds rate steady since July 2023 to combat high inflation, officials cut the 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.

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