2025 Best CD Rates: Top Yields Fall in 3 Terms but 5.75% APY Leader Still Dominates

Essential Highlights

• Top national CD rates dropped today across 1-year, 3-year, and 4-year terms, alongside declines in jumbo CD rates across five terms.
• Andrews Federal Credit Union remains the frontrunner, offering an impressive 5.75% APY on a 6-month CD, maintaining its position for over a month.
• For jumbo deposits, Hughes Federal Credit Union provides a strong 5.65% APY for a 17-month term, ideal for larger investments.
• Multi-year CDs still offer guaranteed rates of 5% or higher up to 3 years, while 4- and 5-year CDs yield mid-4% APYs.
• CD rates have gradually declined over recent months but may accelerate their fall as the Federal Reserve signals potential rate cuts in 2024.

Below are the top CD rates available nationwide today, including exclusive partner offers.

CD Rates Remain Historically High Despite Recent Declines

After reaching a record peak of 6.50% APY in October, CD rates have softened, with today's highest offers including 15 CDs at 5.50% APY or better—down from 30 in early February. Despite this, rates remain significantly elevated compared to the past two decades, allowing investors to secure 5% or more for terms up to 3 years, and mid-4% for longer durations.

Andrews Federal Credit Union continues to lead nationally with its 5.75% APY on a 6-month CD, the highest available rate for over a month. However, today's data shows declines in the top rates for 1-year, 3-year, and 4-year terms. TotalDirectBank now leads the 1-year CDs at 5.50% APY, down from 5.56%. EFCU Financial offers the top 3-year CD at 5.00% APY, a drop from 5.10%. Credit Human leads the 4-year term with 4.60% APY, down from 4.73%.

Securing the highest APY isn't the only strategy; locking in rates guaranteed for over a year is prudent as rates are expected to decline in 2024.

Investors should consider locking in top rates now before potential Federal Reserve rate cuts, which historically drive CD rates lower. The Fed's December 2023 projections anticipate up to three rate reductions totaling 0.75% during 2024.

Current Top Jumbo and Standard CD Rates

Hughes Federal Credit Union offers the best jumbo CD rate at 5.65% APY for a 17-month term. However, jumbo CD rates have decreased across 1-, 2-, 3-, 4-, and 5-year terms by 3 to 24 basis points. Notably, jumbo CDs do not always outperform standard CDs; in fact, standard CDs currently offer better rates in five out of eight terms, so comparing both is essential before investing.

Outlook: Where Are CD Rates Heading in 2024?

The Federal Reserve maintained interest rates at their current high levels during its January 31, 2024 meeting, marking the fourth consecutive pause. After aggressive hikes from March 2022 to July 2023, rates peaked at a 22-year high, benefiting CD investors with historically high yields.

With inflation easing and the Fed holding rates steady since July 2023, many financial institutions have begun reducing CD rates, a trend expected to continue. The Fed has signaled the end of rate hikes and is now focused on timing its first rate cut, contingent on sustained inflation reduction.

Recent economic data, including strong job growth and persistent inflation, suggest the Fed may keep rates elevated longer than anticipated. Market expectations for the first rate cut have shifted from May to June 2024.

Consequently, CD rates are likely to gradually decline until a rate cut is imminent, after which sharper decreases may occur.

Additional High-Yield Options for May 2025

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

Important Notes

The "top rates" presented here reflect the highest nationally available APYs identified through Investopedia's comprehensive daily research on hundreds of banks and credit unions. These rates differ significantly from national averages, which include many low-yield offerings from large banks. Consequently, top rates can be 5 to 15 times higher than average rates.

How We Identify the Best CD Rates

Investopedia analyzes rate data daily from over 200 federally insured banks and credit unions offering CDs nationwide. To qualify for our rankings, institutions must be FDIC or NCUA insured, have minimum deposits not exceeding $25,000, and be accessible in at least 40 states. Credit unions requiring donations above $40 for membership are excluded. For full details, see our methodology.

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