CD Rates in New York for December 2025

There are three main components you should consider when choosing a CD: the term length, the yield and the penalty for early withdrawal. 

Choosing the CD term

A CD term determines how long your money remains in the account. While terms typically range from three months to five years, some institutions offer periods as short as seven days or as long as 10+ years. When selecting a term, honestly assess how long you can leave your funds untouched, as most CDs charge early withdrawal penalties for accessing money before maturity.

Consider minimum deposit requirements as well. Many online banks now offer CDs with no minimum deposit, while traditional New York banks typically require $500-$1,000. For jumbo CDs, expect to need around $100,000.

Choosing the yield

With today's competitive rate environment, yield is typically the main consideration when choosing a CD. The best rates now exceed 4% APY, though traditional brick-and-mortar banks typically offer significantly lower returns than online banks.

However, the highest yield isn't always the best choice if liquidity is a concern. If you might need early access to your funds, consider Bankrate's best no-penalty CDs or shorter term options.

Understanding the early withdrawal penalties

Banks typically impose penalties for withdrawing principal before maturity. For a 12-month CD, penalties generally range from two to six months of interest, with some institutions adding flat fees that further increase the cost.

Consider your risk tolerance when balancing term length and yield against potential penalties. If early withdrawal seems likely, explore CDs with lower penalties or high-yield savings alternatives that maintain access to your funds.

The most popular banks in New York by number of branches include Chase Bank, M&T Bank and Bank of America. While these institutions offer the convenience of local branches, their CD rates typically lag significantly behind online alternatives.

For the highest yields, explore nationwide online banks like Synchrony, Ally, and Marcus by Goldman Sachs, which offer their products to New Yorkers regardless of location. These institutions not only provide better rates but often feature stronger digital banking tools and customer service.

If you already bank with a New York institution, check whether they offer relationship rates for existing customers with multiple accounts, which might boost otherwise mediocre CD yields.