Best CDs in 2025: Top 5.55% APY Rates You Can Still Secure Today

Key Highlights

• Newtek Bank leads with a 5.55% APY on a 6-month CD, the highest nationally available rate since March 18, 2024.
• The number of CDs offering at least 5.50% APY has decreased from six to five, reflecting recent rate adjustments.
• CD rates have been gradually declining but may drop more sharply if the Federal Reserve cuts interest rates later this year.
• The Federal Reserve has kept rates steady in its last five meetings but signals up to three rate cuts could happen in 2024.
• Other competitive rates include 5.42% APY for a 3-month CD from TotalDirectBank and 5.40% APY for 1-year CDs from multiple institutions.

Below, explore featured CD rates from our partners and a comprehensive ranking of the best CDs available nationwide.

Top Nationwide CD Rate: 5.55% APY with Newtek Bank

Newtek Bank offers the highest yield across all CD terms with a 6-month certificate at 5.55% APY, requiring a minimum deposit of $2,500. This rate has held the top spot since mid-March 2024.

For longer terms, 1-year CDs offer up to 5.40% APY, available from five institutions, securing your rate through 2025. The best 2-year CDs provide 5.20% APY extending to 2026, while some 5.00% APY options lock in rates through 2027.

Although CD rates have softened from their October 2023 peak of 6.50%, locking in yields between 4% and 5% for a year or more remains an excellent strategy, especially if rates decline in the future.

Remember, the highest APY isn't always the best choice. While the 5.55% APY is available only on a 6-month term, securing a slightly lower rate for a longer term can protect you from potential rate drops in 2024 and beyond.

Current Leading Bank, Credit Union, and Jumbo CD Rates

Hughes Federal Credit Union offers the top jumbo CD rate at 5.65% APY for a 17-month term with a $99,000 minimum deposit.

Note that jumbo CDs don't always outperform standard CDs. In most terms, standard CDs offer comparable or better rates, so compare both before deciding.

Outlook for CD Rates in 2024

The Federal Reserve has held interest rates steady for the fifth consecutive meeting to combat inflation, which reached multi-decade highs. This environment has created historically favorable yields for CDs and high-yield savings accounts.

With inflation easing, the Fed is monitoring progress before deciding on rate cuts. The latest forecasts suggest up to three rate reductions by the end of 2024, with the first expected around June.

Financial markets concur, pricing in multiple rate cuts this year, which typically leads to lower CD rates over time. The Fed's next rate decision meeting is scheduled for April 30 - May 1, 2024.

Additional Insights

The top CD rates highlighted are the highest nationally available, far exceeding national averages which include many low-yield offerings. Shopping around can yield rates 5 to 15 times higher than average.

How We Identify the Best CD Rates

Investopedia tracks rates from over 200 federally insured banks and credit unions nationwide, updating daily rankings for top CDs across all major terms. Eligible institutions must be FDIC or NCUA insured, offer CDs with minimum deposits under $25,000, and be accessible in at least 40 states. Credit unions requiring donations over $40 for membership are excluded.

For full methodology details, visit our site.

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