What is the highest paying CD rate right now?

As of April 16, 2025, Vibrant Credit Union offers the highest paying CD rate at an APY of 4.60% for its 6-month CD, matched by Abound Credit Union's 4.60% for its 12-month CD.

What should you consider when choosing a CD?

When selecting a CD, consider factors like the following: Term length Interest rate Minimum deposit requirements Penalties for early withdrawal CDs are a safer investment, but be aware that you can't access your funds until the CD has reached maturity; otherwise, you could incur early withdrawal penalties.

Can you lose money on a CD?

Generally, CDs are considered a low-risk investment , and it's unlikely you'll lose your principal as long as you choose CDs from FDIC-insured banks or NCUA-insured credit unions. However, withdrawing funds before the maturity date can result in penalties that might reduce your earnings.

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Top CD Rates Today: April 16, 2025 — Earn Up To 4.60% APY

April 16, 2025

6 min Read

Written by Caitlyn Moorhead

Edited by Joe Evans

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One of the fastest ways to grow your money is to make sure it is doing the earning for you, and not the other way around. If you don’t want to take higher risks with your investments, like with stocks or bonds, a high-yield savings product is your next best bet. Certificates of deposit are a great way to invest your funds and know exactly how much you’ll have at the end of its term length.

GOBankingRates Quick Pick

Today’s featured pick is the 5-year CD account offered by Lafayette Federal Credit Union. This account has an APY of 4.28%. With a $500 minimum to earn threshold and required minimum opening deposit, this CD is an excellent choice for those looking to grow their money securely.

With the Federal Reserve lowering rates by a full percentage point since September, now could be the perfect time to lock in a high APY before CD rates drop. Read on to learn more about the top CD rates available today.

Top CD Rates as of April 16, 2025

Here’s a look at the top CD rates for today:

CD Term	National Average APY	Highest APY	Where To Invest
3-month	1.30%	4.50%	Bask Bank
6-month	1.78%	4.60%	Vibrant Credit Union
1-year	1.84%	4.60%	Abound Credit Union
18-month	2.20%	4.50%	Marcus by Goldman Sachs
2-year	1.66%	4.28%	Lafayette Federal Credit Union
3-year	1.58%	4.28%	Lafayette Federal Credit Union
4-year	1.77%	4.40%	Vibrant Credit Union
5-year	1.59%	4.28%	Lafayette Federal Credit Union

Rates are current as of April 16, 2025.

A History of Top CD Rates: 2010 to 2025

The economy has had its ups and downs, and CD rates have changed right along with it. To get a sense of where rates might be headed, it helps to look at where they’ve been.

Early 2010s: CD rates were relatively low following the 2008 financial crisis. Most banks offered rates below 0.42%, a trend that continued as the economy slowly recovered.
Mid-2010s: Rates began to inch up but remained modest. By the end of 2019, longer-term CDs were barely crossing 0.60%.
From 2022 onwards: Rates surged dramatically, with the best CD rates exceeding 5.00% due to the Federal Reserve’s aggressive response to rising inflation.
By December 2023: Some banks were offering 12-month CD rates of 5.30% or more.
Today: Despite the Fed cutting rates for the first time since 2020, CD rates remain historically high. Top offers include Vibrant Credit Union’s 6-month CD and Abound Credit Union’s 12-month CD at 4.60% APY and Bask Bank’s 3-month CD at 4.50% APY.

How CDs Work

CDs are a type of savings account with a fixed interest rate and a set maturity date. When you open a CD, you agree not to withdraw your money until the term ends, which can range from a few months to several years. If you do decide to take your money out early, you’ll likely have to pay an early withdrawal penalty.

Here are some other key points to know:

CDs offer fixed interest rates for the duration of their term, making them a predictable investment.
Common CD terms include 3, 6, 12 and 18 months.
When you open a CD at a bank or credit union, it’s covered by federal insurance:
- FDIC coverage applies to CDs at banks.
- NCUA coverage applies to CDs at credit unions.

Types of CDs

There are various types of CDs available to savers. Here’s a look at a few:

No-penalty CD: These CDs allow you to access your funds before maturity without a penalty or fee. This is a flexible option for savers who might need to withdraw funds unexpectedly.
Fixed-rate CD: This type of CD account offers a set interest rate for the duration of the investment.
Brokered CD: With this CD, an investor will purchase it for you through a brokerage firm rather than a bank or credit union.
Promotional CD: Often referred to as a bonus or special-rate CD, it generally comes with a higher-than-normal APY for a limited time. Banks and credit unions offer promotional CDs to attract new customers and deposits, which is good to know if you are looking to start a new account.

Pros To Opening a CD

Guaranteed earnings: Your earnings on a CD are guaranteed, so you know exactly what you’re getting.
Encourages saving discipline: With a CD, it’s harder to dip into your savings on a whim, helping you save more effectively.
FDIC or NCUA insured: Your CD investment at an insured bank or credit union is protected up to $250,000, offering you a sense of security.
No monthly fees: CDs generally come without monthly maintenance fees, unlike some bank accounts or checking accounts.

Cons To Opening a CD

Early withdrawal penalties: Withdrawing your money before the term ends means facing penalties.
Lower returns compared to other investments: The return on a CD might be lower than what you could earn through other investments like stocks or real estate.
Automatic renewal risk: Automatic renewal features may lock you into a new CD term if you’re not attentive at the end of your current term.
Minimum deposit requirements: Opening a CD at a bank may require a minimum deposit, posing a challenge for individuals with modest sums.

Final Take: Are CD Accounts Worth It?

If you are looking to tuck away a lump sum of money for a large purchase or future investment, a CD is a low-risk way to do just that. However, if you are looking to make more money faster, a CD may not be the right fit for you. If you’re not sure which money move to make next, you should assess your risk tolerance and consult with a financial advisor to make the most informed decision.

CD Rates FAQ

Here are the answers to some of the most frequently asked questions regarding CD accounts and the top CD rates today.

What is the highest paying CD rate right now?
- As of April 16, 2025, Vibrant Credit Union offers the highest paying CD rate at an APY of 4.60% for its 6-month CD, matched by Abound Credit Union's 4.60% for its 12-month CD.
What should you consider when choosing a CD?
- When selecting a CD, consider factors like the following:
  - Term length
  - Interest rate
  - Minimum deposit requirements
  - Penalties for early withdrawal
- CDs are a safer investment, but be aware that you can't access your funds until the CD has reached maturity; otherwise, you could incur early withdrawal penalties.
Can you lose money on a CD?
- Generally, CDs are considered a low-risk investment, and it's unlikely you'll lose your principal as long as you choose CDs from FDIC-insured banks or NCUA-insured credit unions. However, withdrawing funds before the maturity date can result in penalties that might reduce your earnings.

Compare CD Rates

Elizabeth Constantineau contributed to the reporting for this article.

Methodology: GOBankingRates analyzes deposit rates from banks and credit unions with nationwide availability. The best rates are identified from this group by focusing on annual percentage yield. Institutions listed in the daily chart are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 16, 2025.