Best CD Rates in 2025: Lock in Up to 5.75% APY for 6 Months & 5.27% for 2 Years

Essential Highlights

• Secure an impressive 5.27% APY or higher on CDs up to 2 years, locking in attractive returns through 2026.
• Leading the market, Andrews Federal Credit Union offers a top 6-month CD rate of 5.75% APY nationwide.
• For 12-month terms, T Bank provides competitive rates up to 5.50% APY.
• Jumbo depositors can benefit from Hughes Federal Credit Union’s 5.65% APY on a 17-month CD.
• While CD rates have slightly declined recently, they remain historically strong and may drop faster if the Federal Reserve cuts rates.

Explore today’s highest CD rates nationwide, including exclusive partner offers.

CD Rates Remain Historically Elevated in 2024

Top-tier CD rates continue to hold steady across all terms, with Andrews Federal Credit Union maintaining a 5.75% APY for 6-month CDs. One to three-year CDs yield between 5.00% and 5.50% APY, while longer 4- and 5-year terms offer up to 4.60% APY.

Although CD rates have eased from their October peak of 6.50%, locking in a rate between 4% and 5% for a year or more still presents an excellent opportunity compared to the past two decades.

Remember, the highest APY isn’t the sole strategy; securing a guaranteed rate now could protect your earnings if rates decline in 2024 or 2025.

Current Top Bank, Credit Union, and Jumbo CD Rates

Leading rates remain consistent across standard and jumbo CDs. Hughes Federal Credit Union offers the best jumbo rate at 5.65% APY for 17 months.

Note that jumbo CDs don’t always outperform standard CDs. Often, standard CDs offer comparable or better returns, so compare both before committing.

Outlook for CD Rates in 2024

The Federal Reserve has paused rate hikes since January 2024, maintaining levels after aggressive increases from March 2022 to July 2023 to combat inflation. This environment has driven CD rates to two-decade highs.

With inflation easing, the Fed is expected to start cutting rates, possibly as early as June 2024, according to market forecasts. However, Fed Chair Jerome Powell cautions that economic uncertainty remains, and premature easing could reverse inflation progress.

Upcoming Fed meetings will reveal updated forecasts on rate cuts, influencing CD rate trends. If multiple cuts occur, CD rates may decline gradually; if cuts are delayed, rates could stabilize.

Important Notes

The top rates listed represent the highest nationally available APYs identified through daily research of hundreds of banks and credit unions. These rates far exceed national averages, which include many institutions offering minimal interest.

How We Identify the Best CD Rates

Investopedia monitors over 200 federally insured banks and credit unions nationwide, ranking top CD rates daily. Eligible institutions must be FDIC or NCUA insured, offer CDs with a maximum $25,000 minimum deposit, and be accessible in at least 40 states. Credit unions requiring donations over $40 for membership are excluded. For full details, see our methodology.

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