Top U.S. Banks Offering High-Yield CDs in 2025: Rates Up to 5.50%

Essential Insights on 2024's Best Big Bank CD Rates

• While smaller banks and credit unions traditionally offer the highest CD rates, 15 of the largest U.S. banks now feature CDs with yields of 5% or more.
• The peak big-bank CD rate currently stands at 5.50% APY, available through BMO Alto for 6 months or Flagstar Bank for 7 months, with BMO Alto also offering 5.30% APY for a 12-month term.
• These competitive CDs from major banks span terms ranging from 4 to 15 months.
• For those seeking even greater returns or longer commitments, daily updated rankings highlight numerous CDs paying up to 5.75% APY, including rates above 5% guaranteed for up to 3 years.

High-Yield CDs from Leading U.S. Banks in 2024

Experienced CD investors know that smaller institutions often lead in rates, but if you prefer the security and familiarity of a major bank, now is an excellent time. Fifteen of the largest U.S. banks by deposits offer CDs with minimum yields of 5%, some with multiple term options at or above this level.

The highest current APY from these institutions is 5.50%, accessible via BMO Alto's 6-month CD or Flagstar Bank's 7-month CD. Note that availability and rates may vary by location and other factors.

Additional Big Banks with Competitive CD Offers

While household names like Chase and Bank of America tend to offer lower CD rates, expanding your search to the top 30 largest banks uncovers several with attractive rates in the 4% range. Notable banks include Ally, American Express, Citi, Discover, HSBC, and Wells Fargo.

Maximizing Returns and Securing Longer-Term Rates

If your goal is the highest possible yield or locking in a favorable rate for a longer duration, exploring smaller banks and credit unions is worthwhile. Our daily rankings feature nearly two dozen CDs offering 5.50% APY for terms up to 13 months.

Additionally, nationwide offers include multiple CDs with rates between 5.00% and 5.45% for terms from 18 months to 3 years. For extended commitments, several 4- and 5-year CDs provide solid returns in the mid-4% range, with yields up to 4.73% APY.

Regardless of institution size, deposits at FDIC-insured banks and NCUA-insured credit unions are federally protected up to $250,000, ensuring safety for your investments.

Convenience of Holding CDs at Various Institutions

CDs require minimal management—once opened, they simply earn interest until maturity. This ease makes it practical to hold CDs at institutions other than your primary bank, allowing you to seek the best rates without hassle.

Why Act Now? Anticipated CD Rate Declines in 2024

Following record-high CD rates in late 2023 driven by the Federal Reserve's rate hikes, the Fed has paused increases and is expected to cut rates in 2024. This outlook suggests that CD rates will likely decline further this year.

Locking in top CD rates now can secure attractive, guaranteed returns for the coming years before rate cuts potentially reduce yields.

Current Best Rates Snapshot for Mid-2025

• Top CD Rates: Up to 4.50% APY
• High-Yield Savings Accounts: Two offers at 5.00% APY
• Money Market Accounts: Up to 4.40% APY

Our Methodology for Identifying the Best CD and Savings Rates

Investopedia monitors over 200 federally insured banks and credit unions daily to identify the highest-yielding CDs and savings accounts nationwide. Eligible accounts require a maximum initial deposit of $25,000 and institutions must serve at least 40 states.

Credit unions requiring donations over $40 to join are excluded to ensure accessibility. Our comprehensive methodology ensures you receive reliable, up-to-date information on the best available rates.

Discover the latest news and current events in Personal Finance News as of 20-02-2024. The article titled " Top U.S. Banks Offering High-Yield CDs in 2025: Rates Up to 5.50% " provides you with the most relevant and reliable information in the Personal Finance News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.

The information in " Top U.S. Banks Offering High-Yield CDs in 2025: Rates Up to 5.50% " helps you make better-informed decisions within the Personal Finance News category. Our news articles are continuously updated and adhere to journalistic standards.