Certificates of deposit (CDs) offer a safe and predictable way to grow your savings, often at a higher interest rate than a standard savings account. By locking your money in for a set period, you secure a guaranteed rate of return. This guide explores the best CD rates available in 2025 and provides insights into selecting the right account to meet your financial goals.
Understanding CD Rates
CDs work by offering a fixed interest rate for a specific term, ranging from a few months to several years. The longer the term, the higher the rate typically is. However, it’s important to understand that once you withdraw your funds before the term ends, you’re likely to face a penalty.
Top CD Rate Winners of 2025
Here’s a snapshot of some leading CD rates available in 2025, categorized by what they excel at. Rates and terms are subject to change.
Gold Winner: Marcus by Goldman Sachs CD Account
- Best For: Online banks, CD accounts, mobile banking, great APYs, low monthly fees
- 12-Month Term: 5.0% APY
- 60-Month Term: 5.0% APY
- Why We Like It: Marcus offers a range of CD options, including High-Yield, No-Penalty, and Rate Bump CDs, catering to different saving needs. With competitive rates and a low $500 minimum deposit, it’s a great choice for secure savings.
Silver Winner: Synchrony Bank CD Account
- Best For: CD accounts, money market accounts, online banking, great APYs, low monthly fees
- 12-Month Term: 5.0% APY
- 60-Month Term: 5.0% APY
- Why We Like It: Synchrony Bank CDs offer competitive rates, flexible terms, and no minimum deposit. Options like Bump-Up and No-Penalty CDs add further flexibility.
Bronze Winner: First Internet Bank CD Account
- Best For: Checking accounts, CD accounts, money market accounts, mobile banking, online banking
- 12-Month Term: 4.9% APY
- 60-Month Term: 4.9% APY
- Why We Like It: First Internet Bank offers competitive APYs with terms ranging from 3 to 60 months, and a $1,000 minimum deposit.
Additional Top Choices:
- E*TRADE CD Accounts: Best for online banks, CD accounts, checking accounts, premium checking accounts. Features a no-minimum deposit, no monthly fee, and daily compounding interest.
- Capital One CD Accounts: Best for customer service, national banks, online banking. Accessible to most consumers due to the no minimum deposit requirement.
- Ally Bank CD Rates: Best for online banking, CD accounts, money market accounts, no fees, great APYs. Offers flexible terms, including options to increase rates and withdraw funds without penalty.
- American Express National Bank CD Accounts: Best for online banking, CD accounts, mobile banking, great APYs. Features a no-minimum deposit and the ability to withdraw interest during the CD term.
Choosing the Right CD
When selecting a CD, consider these factors:
- Term Length: Longer terms typically offer higher rates but reduce access to your funds.
- Interest Rate: Compare rates from different banks and credit unions.
- Minimum Deposit: Ensure you meet the minimum deposit requirement.
- Fees: Look for CDs with no monthly fees or early withdrawal penalties.
- Financial Stability: Choose a financially stable bank or credit union.
Disclaimer
CD rates and terms are subject to change without notice. It’s always a good idea to research and compare options before making a decision. The information provided here is for general guidance only and should not be considered financial advice.