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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) currently top out at 5.06%, depending on the term. Here’s a look at how CD rates are trending, along with an overview of the best rates for various terms.
Highest CD Rates Today by Term
A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you’ll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can’t touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year’s worth of interest if you withdraw funds from a five-year CD before it reaches maturity.
Average CD Rates
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 1.79%, down 0.03 point from last week.
Today’s 1-Year CD Rates
For a 12-month CD, one of the most popular CD terms, the highest interest rate available is 5.02%. That rate hasn’t changed much since last week.
The average APY, or annual percentage yield, on that CD now stands at 1.87%, unchanged from a week ago.
Today’s 2-Year CD Rates
If you can hold out for two years, 2-year 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
On a five-year CD, the highest rate today is 4.43%. APYs are averaging 1.59%, similar to last week.
The longer the term, the higher 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 early. Be absolutely certain you understand the penalty before you make your investment.
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 1.79%, versus 1.86% last week.
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
Related: CD Interest Rates Forecast: How Good Will They Get?
Best CD Rates Offered by Banks in March 2025
When looking for the best CD rates, cast a wide net.
Study the offerings from traditional banks, credit unions and digital firms. You may be surprised that a credit union you’ve never heard of provides the highest yields.
For example, PenFed Credit Union’s CD rates currently range from 2.90% to 3.40% while U.S. Bank CD rates currently range from 0.05% to 0.25%.
Other top CD rates by banks include:
How CDs Work
Opening a CD account requires a lump-sum deposit, which you can also think of as an investment. Many CDs and share certificates (the credit union equivalent of CDs) have minimum deposit requirements, ranging from a few hundred to several thousand dollars.
Once your account is open, your principal starts earning the fixed interest rate for the entirety of the term. Banks and credit unions generally send you paper or electronic statements displaying how much interest you’ve earned.
Since the goal is to let your money grow, avoid tapping your cash before the term expires. Doing so will result in an early withdrawal penalty in the form of interest earned. In rare cases, you may also lose a percentage of your principal to early withdrawal penalties.
Are CD Rates Worth It?
If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts. You will have to do without the money for as long as the term lasts; otherwise you’ll owe an early withdrawal penalty.
Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle?
The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going “poof” over the course of a year. Not a happy thought, is it?
CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don’t need immediately, while stocks provide solid long-term returns. You don’t want to risk cash you’re depending on.
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.
“CD rates generally fluctuate the most following the Federal Reserve’s decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets.”
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.
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.
