Our Picks
A certificate of deposit, or CD, can be a smart way to keep your money safe and enjoy guaranteed earnings, especially in an economy as uncertain as today's is. Right now, the best CDs offer annual percentage yields (APYs) as high as 4.50% -- more than three times the national average for some terms.
There are tons of CDs out there to choose from, so we've made things easier for you by rounding up our top choices. Here you can find today's highest CD rates, and what you need to know to find the best account for you.
Best CD rates for May 2025
| Bank | 6-month APY | 1-year APY | 3-year APY | 5-year APY |
|---|---|---|---|---|
| BMO Alto | 3.00% | 3.00% | 2.75% | 2.85% |
| CommunityWide Federal Credit Union | 4.50% | 4.40% | 3.80% | 3.40% |
| First Internet Bank of Indiana | 4.15% | 4.20% | 3.97% | 3.97% |
| Bread Savings | 4.35% | 4.00% | 4.00% | 4.00% |
| CFG Bank | N/A | 4.15% | 3.75% | 3.65% |
| LendingClub | 4.00% | 3.75% | N/A | 3.40% |
| MYSB Direct | 4.15% | 4.00% | 3.91% | 3.91% |
| NexBank | 4.14% | 4.35% | 3.44% | 3.29% |
Average CD rates
Since APYs represent the yield you’ll earn for a year, CD terms shorter than 12 months typically have lower returns. Right now short-term CDs have higher APYs than most long-term CDs. That means you can earn a decent return for locking up your money for a short time, and you’ll have access to your funds sooner. It’s always a good idea to compare rates at different banks and credit unions before opening a CD, to get the best offer to fit your financial goals.
Below is a look at the average CD rates by term based on those tracked by the Federal Deposit Insurance Corporation and those we tracked at CNET. The FDIC includes rates from major national banks, which are historically lower than online-only banks.
| Type | 6-month | 1-year | 3-year | 5-year |
|---|---|---|---|---|
| FDIC-tracked | 1.60% | 1.77% | 1.35% | 1.34% |
| CNET-tracked | 3.98% | 4.00% | 3.59% | 3.59% |
Note: APYs shown are as of May 12, 2025. CNET’s editorial team updates this information regularly. Source: FDIC.
Best CD rates by bank
- 6-month APY: 3.00%
- 1-year APY: 3.00%
- 3-year APY: 2.75%
- 5-year APY: 2.85%
BMO Alto is the online arm of BMO, offering competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.
However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use the BMO Alto website. Since BMO Alto is separate from BMO Bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for assistance.
More details:
- No specialty CDs.
- No minimum balance required.
- No mobile app available.
- Interest paid monthly.
- Early withdrawal penalties range from 90 to 180 days of interest.
- 6-month APY: 4.50%
- 1-year APY: 4.40%
- 3-year APY: 3.80%
- 5-year APY: 3.40%
CommunityWide Federal Credit Union offers high-yield share certificates (the credit union equivalent of CDs) ranging from six months to five years. But unlike other banks and credit unions, your share certificate won’t automatically roll into a new share certificate after it matures. Your interest is credited monthly and can be paid into your share certificate or rolled into the bank account of your choosing.
We like that CommunityWide will try to match share certificate rates if you find better rates elsewhere. You’ll need to meet eligibility requirements to open an account, and there’s a minimum deposit of $1,000. You’ll also incur a one-time $4.95 processing fee to open a debit card, and you can only use the card for funding.
More details:
- No specialty CDs.
- $1,000 minimum deposit and a $4.95 processing fee are required.
- CommunityWide may match better rates.
- Certificates don’t automatically renew.
- Early withdrawal penalty varies based on the amount of the withdrawal and the number of days remaining in the term.
- 6-month APY: 4.15%
- 1-year APY: 4.20%
- 3-year APY: 3.97%
- 5-year APY: 3.97%
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but there’s a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly.
First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest — which is standard for long-term CDs.
More details:
- No specialty CDs.
- Terms range from three months to five years.
- Early withdrawal penalties range from 60 to 360 days of interest.
- 6-month APY: 4.35%
- 1-year APY: 4.10%
- 3-year APY: 4.00%
- 5-year APY: 4.00%
Bread Savings offers CDs and high-yield savings accounts , but both require a minimum deposit — $1,500 and $100, respectively. Its CDs come with a few free services that are common among banks but worth noting, including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.
More details:
- No specialty CDs.
- Terms range from one to five years.
- Early withdrawal penalties range from three months to one year of interest.
- 6-month APY: 4.50%
- 1-year APY: 4.10%
- 3-year APY: 4.00%
- 5-year APY: 4.00%
CFG Bank offers money market , CD and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG charges a few fees that are higher than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10, depending on the account.
Branches are available only in Maryland, which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.
More details:
- No specialty CDs.
- Terms range from one to five years.
- Requires a $500 minimum deposit.
- CDs can’t exceed $500,000.
- Early withdrawal penalty of seven days of interest within six days of account opening.
- 6-month APY: 4.00%
- 1-year APY: 3.75%
- 3-year APY: N/A
- 5-year APY: 3.40%
LendingClub offers a traditional certificate of deposit account with five different terms ranging from six months to five years. APYs offered on CDs are competitively priced. There’s a minimum $2,500 deposit required to open a CD, and it automatically renews with a 30-day grace period.
Keep in mind that LendingClub is an online-only bank, so you’ll need to be comfortable managing your account digitally.
More details:
- No specialty CDs.
- Terms range from six months to five years.
- Early withdrawal penalties vary by term.
- 6-month APY: 4.15%
- 1-year APY: 4.00%
- 3-year APY: 3.91%
- 5-year APY: 3.91%
M.Y. Safra Bank Direct is a full-service bank that offers a range of checking , savings, money market and CD accounts. When it comes to CDs, MYSB Direct is a solid option with a competitive rate and a wide range of terms to choose from, including a 13-month no-penalty CD. And you can use the bank’s online CD calculator to help estimate your return before opening an account.
However, the CDs require a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts. You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. However, you can also manage your account online.
More details:
- No-penalty CD available.
- Terms range from three to 60 months.
- Requires a $500 minimum deposit.
- Early withdrawal penalty of all earned interest or 90 days of interest, whichever is higher.
- 6-month APY: 4.14%
- 1-year APY: 4.35%
- 3-year APY: 3.44%
- 5-year APY: 3.29%
NexBank offers high-yield CDs with terms ranging from three months to five years — all with competitive rates. The bank also offers jumbo and promotional CDs with rates as high as 4.27%. However, the bank has a high minimum deposit requirement. Standard CDs require $10,000, while the bank’s other CD types require $25,000 to $100,000.
More details:
- Jumbo and promotional CDs available.
- Terms range from three months to five years.
- Requires a $10,000 minimum deposit.
- Early withdrawal penalties range from one month to six months of interest.
Is now a good time to open a CD?
Whether now is a good time to lock in a CD depends on your financial goals.
Bernadette Joy, founder of Crush Your Money Goals, notes that the real benefit of a CD is locking in a fixed return. Joy put her money into two one-year CDs that offered a bit over 4% in February 2023, then witnessed rates go even higher.
“I have zero regrets on not waiting -- that money in the CD was not money I was planning to spend any time soon, and it actually helped me take the mental gymnastics out of thinking of what to do with the money,” Joy said. She also opened an 11-month CD with a 6.15% APY.
CD rates have been falling for months, and the possibility of rate cuts in 2025 means they could fall even further. There's a decent chance that the longer you wait to open a CD, the lower the APY you might be able to get.
What to know before opening a CD
When you’re ready to open a CD, consider these factors to choose the best one for you:
- Term: Think about how long you can leave the money deposited in a CD account. If you’ll need access to your funds before a CD term ends, consider a high-yield savings account with more liquidity, a shorter CD term or a no-penalty CD to avoid paying an early withdrawal penalty.
- APY: Look for the highest yield available for the CD term you’ve selected. Online-only banks and credit unions usually offer the best rates, but if a minimum deposit is required, make sure you’re comfortable with the amount or choose another bank that doesn’t have that requirement.
- Type: There are many types of CDs that still give you a guaranteed rate of return while offering more flexibility than a standard CD. Some CD types have lower APYs and limited CD terms to choose from. Consider your financial goals and various CD options to determine what’s best for your money.
- Early withdrawal penalty: Unless you choose a no-penalty CD, most banks charge an early withdrawal penalty if you need to pull money from your CD before the term ends. This is usually a period’s worth of interest, depending on the term and the bank. If you’re worried about not having access to your funds, consider another savings option or a bank with a lower early withdrawal penalty.
- Minimum deposit: CDs allow only a one-time initial deposit, and some banks require a minimum amount to open an account. If this is a problem, consider an account with a lower (or no) deposit requirement.
Alternatives to CDs
If you want to make regular contributions to your savings, or you’re looking for a higher rate, there are other savings options worth exploring.
If you need the flexibility to deposit and withdraw money regularly while still earning a high yield, consider a high-yield savings account . Although high-yield savings accounts have variable interest rates — meaning they rise and fall based on the economy and the bank’s preferences — top rates are currently as high as 5% APY.
The main appeal of a high-yield savings account over a CD is flexibility. You may be charged an early withdrawal penalty if you take money out of a CD before the term ends, but you can access funds in a savings account whenever you need them. This makes it a good spot to stash your emergency fund or money for short-term goals like a holiday fund or concert tickets .
A money market account functions like a savings account but often has checking account privileges like the ability to write checks or make transactions with a debit card. Money market accounts also have competitive APYs, although most are lower than the best CD rates.
Most money market accounts require a high minimum balance to earn interest. Although these accounts usually come with a debit card and check writing, you’ll be limited to a certain number of transactions per month.
Both CDs and treasury bonds are low-risk savings options with a fixed rate. Most CDs are insured by the National Credit Union Association or the Federal Deposit Insurance Corporation, bonds are backed by the government or company that sells them.
You’ll have a guaranteed return as long as you don’t withdraw money before the bond or CD matures. If you do, you could miss out on future interest and pay a penalty that lowers the value.
Other types of CDs to consider
Several types of CDs offer more flexibility than a standard CD. For example, an add-on CD lets you add funds after your initial deposit, while a bump-up or step-up CD increases your yield if rates go up. A no-penalty CD allows you to withdraw your money without incurring an early withdrawal penalty.
If there’s a chance you’ll need access to the money in your CD before the term ends, a no-penalty CD is a good option. No-penalty CDs typically offer lower yields than traditional CDs because you can take your funds out before maturity, said Chelsea Ransom-Cooper, managing partner and financial planning director at Zenith Wealth Partners .
If you’re looking for flexibility and a better return, another option would be a money market account, Ransom-Cooper added. Here’s a look at rates for no-penalty CDs .
A bump-up CD allows you to take advantage of a higher rate for your CD term if one becomes available after you open your account. The APY may still be lower than a standard CD.
The advantages of a bump-up CD are determined by the rate environment. If you think rates might go up and don’t want to be stuck with a low APY, this could be a fail-safe technique.
Because inflation is starting to recede and interest rate hikes have come to an end, you should evaluate if this kind of account makes sense for you.
How to open a CD
Here’s a step-by-step guide to help you open a CD.
- Compare banks and rates. You can open a CD at your local physical branch or online. Most retail banks and credit unions also offer CDs or share certificates, as do online-only banks. Make sure the bank or credit union you choose is FDIC- or NCUA-insured to protect your funds. All the banks we track above are FDIC- or NCUA-insured.
- Choose the CD type and term. When you’re ready to open an account, you’ll choose the CD type and term you want. Be sure to compare rates and weigh all options based on your savings goals.
- Complete an application. Just like with a checking or savings account, you’ll fill out an application with your personal information, including your name, birth date, Social Security number (or Individual Taxpayer Identification Number) and address.
- Fund your account. When opening a CD, you’ll need to make a one-time deposit. You won’t be able to make any additional contributions, so you should open the CD only when you have the funds available.
After you’ve set up your account, you’ll begin earning interest. When your CD matures at the end of the term, you can withdraw your funds or reinvest them into another CD at the then-current rate.
FAQs
Choosing between a CD, money market or high-yield savings account depends on your financial goals, timeframe and liquidity needs.
For instance, if you’re starting from scratch, you may choose a high-yield savings account to build up your savings. If you plan to have a high balance but need debit card access, you might go with a money market account. If you already have the funds and won’t need them for a while, a CD is a good option.
Because early withdrawal penalties vary depending on the bank and CD term, there isn’t a standard way to calculate them. Most early withdrawal penalties equal a loss of interest or dividends for a certain period. A longer CD term generally has a greater penalty for early withdrawal.
If you need access to your funds before the CD matures, some banks require you to withdraw the entire amount of the account, while others charge a penalty only on the amount of a partial withdrawal. If the early withdrawal penalty exceeds the interest you’ve earned, you’ll lose money on your principal investment.
Many banks tie the APY that CDs earn to the federal funds rate established by the Federal Reserve. The federal funds rate is the rate banks use to lend and borrow money. The rates on CDs can rise and fall based on actions taken by the Fed to regulate the health of the economy.
For instance, the sequence of Fed rate hikes from 2022 to 2023 caused APYs to increase. A series of rate pauses after that caused APYs to largely hold steady. Since the Fed’s September rate cut — its first in years — we’ve seen CD rates fall, and they’ve continued falling since the Fed cut rates again in November and December. Though the Fed opted to hold rates steady in January, March and May, experts expect rate cuts to resume later this year.
You typically won’t lose money with a CD, as long as you keep your funds invested until the term ends. If you withdraw money from your CD early, you’ll often pay an early withdrawal fee that’s equal to a certain amount of interest. This fee could cut into your principal — the amount you initially deposited — if the fee is greater than the interest you accrued.
In addition, a CD at an FDIC- or NCUA-insured bank or credit union protects your deposit for up to $250,000 per person, per account category in case of a bank failure or loss. The value of a brokered CD purchased through an investment firm or brokerage can fluctuate and isn’t always protected by federal insurance.
You should leave your money untouched in a CD until the term you’ve chosen ends. Then you can renew it for the same period, choose another CD term or bank altogether or withdraw your funds for something else.
If you don’t withdraw your money when the term ends, some CDs are set up to automatically renew, and you might get locked into a lower interest rate. CDs generally offer a grace period of a few days so you can decide whether to withdraw the money or renew the CD. It’s a good idea to have a plan for your funds once the CD term ends.
Our CD methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for five-year terms from among the organizations we surveyed and considered rates for shorter terms if five-year terms were identical or unavailable. All information is reviewed by experts for accuracy.
Banks we reviewed
Alliant Credit Union, Ally Bank, America First FCU, American Express National Bank, Barclays, Bask Bank, Bethpage, BMO Alto, Bread Savings, Capital One, CFG Bank, CIT, CommunityWide Federal Credit Union, Connexus Credit Union, Discover, EverBank, First Internet Bank of Indiana, First National Bank of America, Forbright, Lending Club, Limelight Bank, Marcus by Goldman Sachs, MYSB Direct, NexBank, Popular Bank, Quontic, Rising Bank and Synchrony.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. We may receive compensation when you click on links to products or services offered by our partners.
