Top Short-Term CD Rates in 2025: Earn Up to 5.75% APY Now!

Key Highlights

• Short-term CDs hit record high average rates as of January 31, 2024, according to the FDIC.
• Longer-term CD rates have slightly decreased but remain near historic highs.
• Federal Reserve’s aggressive rate hikes since 2022 have propelled CD yields to multi-decade highs.
• Top national CD offers now yield up to 5.75% APY, far exceeding average rates.
• With expected Fed rate cuts later this year, locking in a high CD rate today is a smart financial move.

Short-Term CD Rates Reach New Peaks While Longer Terms Ease

The latest FDIC data reveals that 3-month and 6-month CDs have climbed to unprecedented average rates, marking a 23-month consecutive rise for 6-month CDs since April 2022. Conversely, 1-year to 5-year CDs experienced slight declines of 1 to 3 basis points but remain near record levels. The 3-year CD rates held steady just below their December peak.

This surge in CD rates stems from the Federal Reserve’s robust interest rate increases totaling 5.25% between March 2022 and July 2023, aiming to curb inflation. These hikes have driven banks and credit unions to offer significantly higher yields on savings products, reaching levels unseen in over two decades.

Maximize Earnings: Shop Beyond National Averages

While FDIC averages provide a benchmark, savvy investors can earn three to four times more by choosing top-tier CDs. For example, although the national average 6-month CD rate is 1.53% APY, the best available nationwide offers an impressive 5.75% APY, with many options above 5.5%. Similar opportunities exist across other terms, making it worthwhile to compare rates before investing.

Safety and Security

CDs offer a secure way to grow your savings with guaranteed returns. All featured CDs come from federally insured institutions (FDIC or NCUA), safeguarding deposits up to $250,000 per institution even in unlikely bank failures.

Outlook for CD Rates in 2024

Following record highs last fall, CD rates have started to decline slightly as the Federal Reserve holds its benchmark rate steady. However, with anticipated rate cuts expected in 2024—potentially two to four reductions totaling around 0.75%—banks are likely to reduce CD yields further. This creates an ideal window to lock in top rates now and secure predictable returns for the coming years.

Pro Tip

If you prefer liquidity over locking funds in CDs, consider high-yield savings or money market accounts, which also offer competitive rates and flexible access.

How We Identify the Best Rates

Our daily analysis covers over 200 federally insured banks and credit unions nationwide, focusing on accounts with initial deposits up to $25,000 and availability in at least 40 states. We exclude credit unions requiring donations over $40 for membership to ensure accessible options. This rigorous methodology helps us deliver the most competitive and reliable savings and CD rate rankings.

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