Key Takeaways
- Today’s highest CD rate is 5.06% for a jumbo 6-month CD.
- CD rates from online banks are commonly twice as high as the national average rates.
- CD ladders let you leverage high rates without locking up all of your money long-term.
The best interest rates on CDs – certificates of deposit – pay up to 5.06% today, based on certificate term lengths. Here’s an overview of how CD rates are changing, followed by a guide to the current top CD rates across different terms.
Highest CD Rates Today by Term
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A CD is a specific type of savings account (known as a time deposit account) that comes with a fixed interest rate and a maturity period. CDs, depending on the yield, typically offer better yields than high-yield savings accounts. The tradeoff is that you can’t access your cash until the CD matures, otherwise you’ll owe a withdrawal fee. The longer the term, the harsher the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment.
Average CD Rates
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Today’s 3-Month CD Rates
Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.3%, but the highest rate is 4.72%. The average rate is unchanged from a week ago.
Today’s 6-Month CD Rates
If you’re interested in a short-term CD with high yields, consider a six-month CD. The best rate today is 4.94%. The current average APR for a six-month CD is 1.82%, about the same as last week.
Today’s 1-Year CD Rates
The highest interest rate currently available on a 12-month CD – one of the most popular CD terms – is 5.02%. If you find a rate in that neighborhood, you’ve found a good deal. That rate hasn’t changed much since last week.
The average APY, or annual percentage yield, on a one-year CD is now 1.87%, unchanged from a week ago.
Today’s 2-Year CD Rates
If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. That’s the same as this time last week.
The average APY for the CD is 1.68%, flat to last week’s average.
Today’s 3-Year CD Rates
Today’s highest rate on a three-year CD is 4.65%, so you’ll want to shop around for that rate or something near it. The average APY stands at 1.59%.
Today’s 5-Year CD Rates
The highest rate available today for a five-year CD is 4.43%. The average APY is 1.59%, similar to last week.
If you opt for a five-year CD, make sure you’re aware of the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD before it matures.
Today’s Jumbo CD Rates
The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.82%.
Most jumbo CDs require a minimum deposit of $100,000 – and some even require $250,000. However, there’s no universally agreed-upon definition regarding what qualifies as a “jumbo” CD. Some banks and credit unions slap the label “jumbo” on CDs you can open with $50,000, $25,000 or even less.
Other Top CD Rates by Term
- Best 4-Year CD Rates
- Best 10-Year CD Rates
- Best 18-Month CD Rates
- Best Jumbo CD Rates
- Best IRA CD Rates
- Best No-Penalty CD Rates
Related: CD Interest Rates Forecast: How Good Will They Get?
Best CD Rates Offered by Banks in February 2025
Digital banks tend to have an edge over traditional outfits thanks to lower overhead costs and the need to offer top-of-market yields to attract new customers
Take Chase Bank (traditional), Capital One (hybrid) and Synchrony Bank (online).
- Chase Bank CD Rates range from 0.01% to 4.00%
- Capital One 360 CD Rates range from 3.50% to 4.00%
- Synchrony Bank CD Rates range from 0.25% to 4.35%
Be sure to compare a few options with the types of banks you’re most comfortable with.
Other top CD rates by banks include:
- PNC Bank CD Rates
- Citibank CD Rates
- Wells Fargo CD Rates
- Truist CD Rates
- Ally Bank CD Rates
- Capital One 360 CD Rates
How To Open a CD
You “purchase” a CD from a financial institution by opening an account with a lump-sum deposit, which is your principal. Many CDs and share certificates (accounts similar to bank CDs but offered by credit unions) have minimum deposits you must meet, which typically range from a few hundred to several thousand dollars.
Once you deposit your principal, the clock starts on your timed investment, and you begin earning interest. The bank or credit union will provide you with regular statements showing how much you’re earning. You may accrue interest daily, monthly or quarterly.
Try not to tap your CD before the term ends. Early withdrawal penalties can be so severe that they negate your interest and then start eating into your principal.
Are CD Rates Worth It?
CDs typically pay higher interest than other savings vehicles, even the best high-yield savings accounts and money market accounts. And while they may not offer the kind of enviable returns that are possible with stocks, CDs beat the more attention-getting investments in one regard: They’re one of the safest places to put your money.
Investors lost millions in the 2022 crypto crash, and putting your money into the stock market, real estate or gold and other commodities can be risky, too. But when you buy a certificate of deposit or credit union share certificate from a federally insured financial institution, you can sleep easily with the knowledge that your investment is protected.
The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit.
Traditional brick-and-mortar banks have far greater operating expenses than banks that only exist online. That’s why online banks are usually able to offer more attractive APYs on CDs – they have lower overhead costs, so they can afford to pay higher interest rates to customers.
Related: CD Interest Rates Forecast: How Good Will They Get?
Methodology
Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.
Frequently Asked Questions (FAQs)
How do you build a CD ladder?
You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD.
Follow this plan and you’ll have one better-yielding five-year CD maturing each year. If you’re ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD.
Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate.
Do CDs cost anything?
CDs usually come with zero fees, meaning your money won’t be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts.
You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won’t need access to your cash in the meantime.