Top CD Rates in 2025: Lock in Up to 6.00% Before Rates Drop

Essential Insights

• CD rates surged starting in 2022 and reached historic peaks in 2023.
• Recently, the top nationwide CD rates have started to decline, indicating a possible peak.
• If you've been considering opening a CD, now is the optimal time before rates fall further.
• Current leading CD rates range from 5.20% to 6.00%, fixed until maturity.
• The Federal Reserve's aggressive rate hikes fueled this rise, but with future hikes unlikely, banks are lowering rates.

CD Rates Hit Record Levels in 2023

Beginning in early 2022, CD rates began climbing as the Federal Reserve initiated a series of rate hikes to combat high inflation following the pandemic. The Fed increased the federal funds rate 11 times through 2023, pushing it to the highest point since 2001.

Since the federal funds rate directly influences what banks and credit unions offer for deposit accounts, CD rates soared to their highest in over two decades. Although the last rate increase occurred in July, anticipation of further hikes kept CD rates climbing into the fall.

Top CD Rates Begin to Ease

However, since October and early November, the highest CD rates have softened. August saw the debut of a rare 6.00% APY nationwide offer, and through October-November, several CDs offered rates between 6.00% and 6.50%. By late November, these premium offers were withdrawn, leaving the top rate at around 5.80% APY.

Our monitoring of CDs offering elite rates (5.75% or higher) showed a peak of 18 options in early November, declining to 12 currently, signaling a cooling trend.

On a positive note, the highest APY recently nudged back to 6.00% with a new record-setting CD released today.

Which CD Term Should You Choose in 2024?

Choosing the best CD term depends on your financial goals. The highest APY currently is for a 6-month CD at 6.00%, but this guarantees the rate for only eight months. Longer-term CDs offer slightly lower rates but provide guaranteed returns for 1 to 5 years, suitable for those who don’t need immediate access to funds.

Below are the top APYs across common CD terms. Selecting a term balances your liquidity needs against earning potential.

Will CD Rates Climb More in 2024?

Forecasting Federal Reserve rate decisions is challenging, as each decision depends on evolving economic indicators. Currently, improving inflation numbers suggest the Fed may hold rates steady. However, if inflation remains above the 2% target, another rate hike in 2024 is possible.

If no further hikes occur, CD rates are unlikely to rise and may decline gradually. Still, CDs already offer historically attractive yields, so locking in a rate today is a prudent strategy to maximize returns without risking lower future rates.

Even if rates rise slightly next year, the gain will likely be modest and may not justify waiting and risking missing current high yields.

Additional High-Yield Options for 2024

Best High-Yield Savings Accounts: Two options currently offer 5.00% APY.
Best Money Market Accounts: Rates up to 4.40% APY available.

How We Collect Rate Data

Every business day, we analyze rate data from over 200 federally insured banks and credit unions nationwide. To qualify for our rankings, institutions must be FDIC or NCUA insured, have a minimum deposit requirement of $25,000 or less, and offer accounts accessible in at least 40 states.

Credit unions requiring donations above $40 to join are excluded. For detailed methodology, please refer to our full explanation.

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