10 Best CD Rates of 2025

Investing in the stock market can allow your money to grow, but it also comes with risks. On the other hand, keeping your cash in a savings account offers security but may not provide significant growth due to inflation. Certificates of Deposit (CDs) offer a middle ground by offering higher Annual Percentage Yields (APYs) than traditional savings accounts, even surpassing high-yield savings accounts. In exchange for these higher rates, you must commit to locking up your funds for a specific period, typically ranging from three months to five years. If you have funds that you can afford to set aside for the CD term, it could be a wise investment.

When considering CD rates, it’s important to note that they can fluctuate based on the Federal Reserve’s interest rate changes. Once you open a CD, you are locked in with that rate until the term ends. The APY is the interest you earn on the money in one year, and it is a critical figure to consider when comparing CD rates. Online banks and credit unions often offer higher CD rates due to lower overhead costs, but credit unions usually require membership.

Our team reviewed approximately 60 CD offerings from various financial institutions to compile a list of the best CD rates available in the market. We considered factors such as APYs, minimum balance requirements, and special promotions to determine our top picks. These picks are organized based on the highest APY offered.

1. Bask: Bask, an online-only bank, offers competitive rates on CDs, with the highest APYs on three-month and one-year CDs. However, they do not offer CDs with terms longer than two years.
2. Marcus: Marcus, an online platform by Goldman Sachs, provides attractive APYs on various CDs, including no-penalty and rate-bump CDs. The minimum deposit requirement is relatively low, making it accessible to many savers.
3. Popular Direct: Popular Direct offers competitive rates on a range of CDs, from three months to five years. They automatically renew your CD at maturity, with early-withdrawal penalties varying based on the term length.
4. Limelight Bank: Limelight Bank offers high APYs on CDs with terms ranging from six months to three years. Early withdrawal penalties are reasonable, providing flexibility for savers.
5. Newtek Bank: Newtek Bank provides a range of CD offerings with terms from six months to five years. While shorter-term CDs offer attractive rates, longer-term CDs have lower APYs.
6. Tab Bank: Tab Bank offers competitive APYs on all CDs, with the highest rates on one-year CDs. They have a 10-day grace period for withdrawals and automatic renewal options.
7. Live Oak: Live Oak is known for its high APYs on short-term CDs, with rates decreasing for longer terms. The minimum deposit requirement is higher, but the bank offers a maximum amount covered by the FDIC.
8. First Internet Bank: First Internet Bank offers attractive rates on a range of CDs, with a lower APY on three-month CDs compared to longer-term options. Early-withdrawal penalties are higher than average.

   When selecting a CD, it’s essential to compare rates, choose the right type of CD, pick a suitable term, understand the terms and minimum deposit requirements, and consider alternatives like high-yield savings accounts, money market accounts, bonds, or stocks based on your financial goals. Additionally, creating a CD ladder strategy can help optimize your returns while maintaining access to your funds.

   Remember to always review the terms and conditions of the CD before making a decision to ensure it aligns with your financial objectives.