Best CDs in May 2025: Top 6-Month Rate at 5.55% APY – Updated Rates & Offers

Essential Highlights

• MutualOne Bank offers the top nationwide CD rate of 5.65% APY on a short 3-month term.
• Newtek Bank’s 6-month CD at 5.55% APY is an excellent option for a longer rate lock.
• Longer terms are available with 1-year CDs at 5.40%, 2-year CDs at 5.30%, and 3-5 year CDs ranging from 4.70% to 5.00% APY.
• Current CD rates remain slightly below last fall’s historic highs, reflecting cautious anticipation of potential Federal Reserve rate cuts.

Below are the best featured CD rates from our partners, followed by a comprehensive nationwide ranking of top certificates of deposit.

Secure 5.30% or Higher for up to 23 Months

Currently, the highest nationally available CD rate is 5.65% APY from MutualOne Bank for a 3-month term, offering a guaranteed return through August 2024.

For those seeking a longer commitment, Newtek Bank’s 6-month CD pays 5.55% APY, locking in your yield until early 2025.

Additionally, six more CDs in our daily rankings offer 5.50% APY or higher for terms up to 9 months. Credit Human stands out with a 5.30% APY on flexible terms from 18 to 23 months, securing returns until late 2025 or early 2026.

Lock Rates Until 2027 with Longer-Term CDs

Opting for CDs with terms of two years or more is a strategic choice amid a potential period of declining U.S. interest rates over the next few years. You can lock in a 5.00% APY on a 3-year CD, ensuring steady returns through 2027, or select 4-5 year CDs with rates in the mid-to-high 4% range for longer-term stability.

Pro Tip

Today’s elevated CD rates are a powerful hedge against persistent inflation, currently around 3.5%. By investing in these top CDs, you position yourself to outpace inflation by 1 to 2 percentage points, preserving and growing your savings.

CD Rates Hover Near 20-Year Highs

Although CD rates have eased slightly since peaking at 6.50% in October 2023, they remain historically strong. The number of CDs offering at least 5.50% APY has decreased from 30 in February to 8 now, yet locking in yields between 4% and 5% for a year or longer remains a highly profitable opportunity.

Remember, the highest APY isn’t the only winning strategy. Considering that rates may decline through 2024 and 2025, securing a long-term rate today can be a smart move to maximize earnings before potential cuts.

Jumbo CDs Provide Enhanced Rates on Select Terms

For larger deposits, jumbo CDs can offer higher yields. State Bank of Texas features 5.50% APY on a 12-month jumbo CD, while State Department Federal Credit Union pays 5.41% APY for 15 months.

However, jumbo rates don’t always surpass standard CDs. Currently, standard CDs outperform jumbo options in six out of eight terms, so it’s prudent to compare both before deciding.

Forecast: CD Rates and Federal Reserve Moves in 2024

To tackle historic inflation levels, the Federal Reserve raised the federal funds rate multiple times between March 2022 and July 2023, reaching the highest point in over two decades. This led banks and credit unions to increase interest rates on deposits, benefiting CD investors.

This rate hike cycle culminated in late 2023 with the highest CD yields in 20 years, creating excellent opportunities for savers.

Since the Fed paused rate hikes in July 2023, it has maintained steady rates through six consecutive meetings. This pause reflects cooling inflation, though progress remains slow, prompting the Fed to adopt a wait-and-see approach before lowering rates.

Fed Chair Jerome Powell recently noted that inflation reduction has stalled in early 2024, delaying confidence needed for rate cuts. He also indicated that a rate hike is unlikely in the near term.

Market expectations, reflected by CME Group’s FedWatch Tool, currently place the first potential rate cut around mid-September 2024, leaving CD rates likely stable for several months ahead.

The Federal Reserve will conduct five more policy meetings in 2024, with the next scheduled to end on June 12.

Top competing savings options today include high-yield savings accounts offering 5.00%, CDs up to 4.50%, and money market accounts paying up to 4.40% APY.

Important Note

The "top rates" listed represent the highest nationally available CDs identified by ZAMONA’s daily research across hundreds of banks and credit unions. These rates far exceed the national average, which is lowered by large banks paying minimal interest. By shopping around, you can find CDs paying 5, 10, or even 15 times the average rates.

Our Methodology for Identifying the Best CD Rates

ZAMONA monitors over 200 federally insured banks and credit unions daily to rank the best CD rates nationwide across all major terms. Eligible institutions must be FDIC-insured for banks or NCUA-insured for credit unions, offer CDs with deposits no larger than $25,000, and operate in at least 40 states.

Credit unions requiring membership donations of $40 or more are excluded. For full details on our selection process, please consult our comprehensive methodology.

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