Best CD Rates of 2025

Certificates of deposit (CDs) are a safe, low-risk way to grow your savings faster than a regular savings account. By locking in your money for a set period, CDs typically offer higher, guaranteed interest rates. In this guide, you’ll discover the best CD rates of 2025 and how to choose the right account for your needs.
Show More
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased bank reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our in-depth bank review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
TOP 10 WINNERS
Bank/Institution
Ratings
Annual Percentage Yield (APY)
Key Highlights
Find Out More
GOLD WINNER

Best for Online Banking
12-Month Term:
60-Month Term:
Mobile App
Great APYs
Marcus by Goldman Sachs CD Account
SILVER WINNER

Best for Great APYs
12-Month Term:
60-Month Term:
Low Monthly Fees
Money Market Accounts
Synchrony Bank CD Account
BRONZE WINNER

Best for Mobile App
12-Month Term:
60-Month Term:
Checking Accounts
Online Banking
First Internet Bank CD Account

Best for Online Banking
12-Month Term:
60-Month Term:
Premium Checking Accounts
Mobile App
E*TRADE CD Accounts

Best for National Banking
12-Month Term:
60-Month Term: *
Mobile App
Checking Accounts
Capital One CD Accounts

Best for No Fees
12-Month Term:
60-Month Term:
Great APYs
Online Banking
Ally Bank CD Rates

Best for No Minimum Deposit
12-Month Term:
60-Month Term:
Online Banking
Mobile App
American Express®, Member FDIC, CD Accounts

Best for Great APYs
12-Month Term:
60-Month Term:
Low Monthly Fees
Online Banking
Sallie Mae Bank CD Accounts

Best for Online Banking
12-Month Term:
60-Month Term:
Money Market Accounts
Checking Accounts
Discover® Bank, Member FDIC, CD Accounts

Best for No Minimum Deposit
12-Month Term:
60-Month Term:
Online Banking
Great APYs
Barclays Bank CDs
More About Our Best CD Rate Winners
GOLD WINNER
Best For
Online Banks
CD Accounts
Mobile App
Great APYs
Low Monthly Fees
Caters To Different Types of Savers
Marcus by Goldman Sachs offers a range of CD options, including High-Yield, No-Penalty and Rate Bump CDs. With competitive rates, flexibility and a low $500 minimum deposit, it's a great choice for secure savings.
Fees
Early withdrawal penalty may apply
APY
Up to
Min Opening
$500
Pros
- Various rates and term lengths
- Lower minimum deposit required
- FDIC-insured for applicable limit
Cons
- No ability to integrate into a Marcus checking account
- Early penalty withdrawal for certain CDs
Why We Like Marcus by Goldman Sachs
Marcus by Goldman Sachs CDs offer high returns and flexibility, particularly with its no-penalty options, making it a strong choice for savers focused on secure growth.
Show Pros, Cons and More
Hide Pros, Cons and More
SILVER WINNER
Best For
CD Accounts
Money Market Accounts
Online Banking
Great APYs
Low Monthly Fees
Flexible CD Options With No Minimum Deposit
Synchrony Bank CDs offer competitive rates, flexible term lengths and no minimum deposit requirement. With options like Bump-Up and No-Penalty CDs, they cater to a variety of saving needs.
Fees
Early withdrawal penalty may apply
APY
Up to
Min Opening
$0
Pros
- Range of CD lengths
- Competitive APYs
- FDIC insured
- No minimum deposit requirement
Cons
- Limited in-person services
- Automatic renewal of CD unless you opt-out
- Early withdrawal penalty
Why We Like Synchrony Bank
Synchrony Bank offers high rate CDs with varying terms and no minimum balance or monthly fee requirement. Because of their range of options, Synchrony CDs are appealing to a variety of savers.
Show Pros, Cons and More
Hide Pros, Cons and More
BRONZE WINNER
Best For
Checking Accounts
CD Accounts
Money Market Accounts
Mobile App
Online Banking
Earn Up To
First Internet Bank CD accounts offer competitive APYs with terms ranging from 3 to 60 months. A $1,000 minimum deposit is required, making it a solid, low-risk savings option for those with lump sums to invest.
Fees
Early withdrawal penalties may apply
APY
Up to
Min Opening
$1,000
Pros
- Competitive APYs
- Wide range of term lengths to choose from
Cons
- A $1,000 opening deposit is required which may be too high for some customers to afford
Why We Like First Internet Bank
First Internet Bank's CD accounts are a low-risk way to save. They offer high yields and come with a standard minimum opening deposit requirement.
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
Online Banks
CD Accounts
Checking Accounts
Premium Checking Accounts
Mobile App
Interest Compounded Daily
E*TRADE CD accounts feature competitive APYs , no minimum deposit, no monthly fees, flexible terms from six months to five years, daily compounding interest and FDIC insurance, though they have early withdrawal limitations and limited physical locations.
Fees
No monthly service fee
APY
Up to
Min Opening
$0
Pros
- Competitive APYs
- No minimum deposit
- No monthly maintenance fees
- FDIC-insured
Cons
- Early withdrawal limitations
- Limited physical locations
Why We Like E*TRADE
E*TRADE's CDs offer competitive rates and flexible terms without monthly fees or minimum deposits, appealing to investors seeking secure, interest-bearing investments.
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
Customer Service
National Banks
Online Banking
no-fees
Premium Checking
Min. Balance to Earn APY $0
Capital One CDs offer competitive rates and, with no minimum deposit requirement makes it accessible to most consumers. With terms from 6-60 months, there's something for everyone.
Fees
No monthly service fee
APY
to
Min Opening
$0
Pros
- APYs are competitive
- CD lengths cover different terms
- No minimum deposit
- Can open online
Cons
- Early withdrawal penalties
- Automatic renewal
- Limited specialty CD options
Why We Like Capital One
No matter where you are in your savings journey, Capital One CDs can help you grow your savings. Features include:
- Terms range from 6 to 60 months
- No minimum balance to open the account
- Guaranteed returns
- FDIC insured
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
Online Banking
CD Accounts
Money Market Accounts
No Fees
Great APYs
10-Day Best-Rate Guarantee
Ally Bank CDs come in several options ranging from three months to five years, including no-penalty CD options.
Fees
No monthly service fee
APY
Up to
Min Opening
$0
Pros
- No minimum deposit
- No maintenance fees
- Variety of rates and CD terms
Cons
- No physical branches
- Early withdrawal penalty, though this applies to most CDs
- Fixed interest rates
Why We Like Ally Bank
Ally Bank offers a range of CDs with competitive rates and no minimum deposit requirements. Options include High Yield CDs for consistent growth, Raise Your Rate CDs that let you increase your rate if market rates rise, and No Penalty CDs allowing early withdrawals without fees after six days. All CDs feature daily compounding interest for maximum returns and are FDIC-insured for added security. These flexible options make Ally Bank a strong choice for secure savings.
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
Online Banks
CD Accounts
Mobile App
Great APYs
No Minimum Deposit
Flexible CD Term Lengths
Along with no minimum deposit requirement, there are also no fees to maintain with an American Express Bank CD. Flexible terms are available up to five years.
Fees
No monthly service fee
APY
Up to
Min Opening
$0
Pros
- No minimum opening deposit required
- You can withdraw interest during the CD term.
Cons
- Competitive APYs but higher CD rates can be found through other online banks.
- Limited CD types
Why We Like American Express National Bank
American Express National Bank offers traditional fixed-rate CDs, with no muss and no fuss terms ranging from 11 months to five years.
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
Money Market Accounts
CD Accounts
Online Banking
Low Monthly Fees
APYs Up To
Sallie Mae is an online-only bank that features low fees and high interest rates. CD accounts range from 6-60 months.
Fees
No monthly service fee
APY
Up to
Min Opening
$2,500
Pros
- Competitive APYs
- Flexible CD lengths
- FDIC insured so money is protected in case of bank failure
Cons
- High minimum deposit
- Early withdrawal penalty
Why We Like Sallie Mae Bank
Sallie Mae Bank offers a wide range of CD terms to choose from. Plus, there's no monthly fees to take away from your savings rate.
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
Online Banks
CD Accounts
Money Market Accounts
Checking Accounts
Mobile App
APYs Up to
Discover Bank's high-yield CDs offer flexible terms from three months to 10 years, no minimum deposit requirements, and competitive APYs up to .
Fees
No monthly service fee
APY
Up to
Min Opening
$0
Pros
- No monthly fees
- Reasonable early withdrawal penalty policy
Cons
- Some online banks offer higher APYs
Why We Like Discover Bank
Discover Bank high-yield CDs guarantee returns, but that you'll also reach your savings goals faster.
Show Pros, Cons and More
Hide Pros, Cons and More
Best For
CD Accounts
Mobile App
Online Banking
Great APYs
No Minimum Deposit
High Rates and No Minimum
Barclays Bank CDs offer competitive rates, no minimum deposit, and flexible terms, making them a top choice for growing your money.
Fees
No monthly service fee
APY
Up to
Min Opening
$0
Pros
- High CD rates
- No minimum opening deposits
Cons
- Lower withdrawal penalties than other leading competitors
Why We Like Barclays Bank
With some of the best APY and CD options available online, it's not hard to see why Barclays Bank CDs are rated among the best in the nation.
Show Pros, Cons and More
Hide Pros, Cons and More
Best Banks
CD Account Rates
Best Savings Accounts
Best Checking Accounts
Best Money Market Accounts
Research Methodology
To determine rankings for the Best CD Rates of 2025, GOBankingRates considered the following factors (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY rate; (5) 60-month CD APY rate, and (6) the average mobile app rating between the Google Play (Android) and Apple stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighed 0.5 times, factor (3) was weighed 2 times, and factors (4) and (5) were weighed 4 times. All products and offerings had to be available as of Nov. 1, 2024, to be considered. Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Sept. 4, 2025.
How To Choose a CD Account
The term of a CD is the length of time you commit to keeping your funds in the account. When opening a CD, you’ll select the “term,” which locks your money in until it matures. Typical CD terms range from three months to five years. Here are some key takeaways:
- You cannot access the money in your CD until maturity without incurring early withdrawal penalties.
- When opening a CD, you’ll pick the length of the fixed term — usually from three months to several years — and the money will be locked in for that period.
- CDs offer higher, fixed interest rates compared to regular savings accounts, allowing your money to grow faster.
Before you open a CD account, there are a few things you should assess. You can follow these steps to choose the best CD for you.
Step 1: Make Sure You Understand How CDs Work
A CD is a type of savings account offered by banks and credit unions. It provides a safe and easy way to invest and make a return on your money. Unlike traditional savings, however, it’s not a liquid account that you can easily withdraw money from. To earn the highest CD rate, you need to leave your CD account untouched for the entirety of the term length, until it reaches maturity.
Step 2: Factor in the Fees and Minimums
While most CDs don’t charge monthly fees, you’ll face penalties for early withdrawals. Additionally, CDs often have minimum deposit requirements, so ensure the amount fits within your budget. If you’re looking for banks with the highest CD rates, be sure to compare both APYs and minimum deposit requirements.
Step 3: Figure Out if a CD Is Right for You
CDs are best for those who want a low-risk way to save and earn higher interest. If you don’t need access to the funds during the term, a CD could be a smart way to meet your goals.
Step 4: Open a CD Account
Once you have decided on the right account for you based on CD rates and details, you can open an account quite easily. Here is what you’ll need to do:
- Make sure you have two forms of identification, such as your driver’s license or passport.
- Present personal information and required documents, such as your name, address, birthday and Social Security number.
- Decide if you want the interest disbursed at the end of the term or regularly.
- Fund the account with your opening deposit.
Pros and Cons of CDs
CDs have many benefits, as well as some drawbacks. Here are some pros and cons to consider.
Pros
- Higher interest rates: CDs typically offer higher interest rates compared to traditional savings accounts. Depending on the length of the CD you choose, the APY could be 4% or higher.
- Encourages saving: Because the money in a CD can’t be withdrawn until the term ends, it keeps you from spending and helps you stay on track with savings goals.
- Guaranteed rates: If you open your account when interest rates are high, you can lock in that rate for the whole term — even if rates drop later.
Cons
- No access to the funds: Your money is locked in for the full term. Early withdrawals often mean penalties, unless you choose a liquid CD with lower rates.
- Rates are locked in: If interest rates rise after you open your CD, you can’t take advantage of those higher rates.
- Opportunity cost: CDs are safer than stocks or other investments, but your money could potentially earn more elsewhere, especially over the long term.
Best for: People who want a safe, predictable return on their money and don’t need immediate access to their funds.
Types of CDs
There are several types of CDs, each with its own benefits and terms:
- Traditional: Deposit a set amount that stays locked in for a predetermined time. This option typically offers the highest interest rates but requires you to leave your funds untouched until maturity.
- No penalty: Also known as a liquid CD, this option allows for penalty-free withdrawals before the CD matures. Financial institutions may set waiting periods or withdrawal limits, and the interest rate is usually lower than with a traditional CD.
- Bump-up: Lets you request a higher interest rate if rates rise during your term. This offers flexibility but often starts with a slightly lower initial rate.
- Add-on: Allows you to make additional deposits after opening the CD, which can help you grow your balance without opening multiple accounts.
- Jumbo: Designed for large deposits, typically $100,000 or more, with higher rates to reward the bigger balance.
Alternatives to CD Accounts
Here are some alternatives to CDs and how they stack up:
Account | Access To Funds | Interest Rates | Best For |
---|---|---|---|
CDs | Locked until term ends, penalties for early withdrawal | Higher, fixed for term | Saving for specific goal, guaranteed returns |
Traditional savings accounts | Full access anytime | Low | Emergency funds, everday savings |
High-yield savings accounts | Full access anytime | Higher than traditional savings, variable | Emergency funds, growing savings quickly |
Money market accounts | Limited withdrawals, check-writing or debit access | Moderate, sometimes tiered | Saving with some liquidity |
Bonds | Locked until maturity or sellable | Varies, often moderate | Long-term, low-risk investing |
CDs vs. Traditional Savings Accounts
Savings accounts let you withdraw funds anytime, while CDs lock in your money for a set term and charge penalties for early withdrawal. CDs usually earn more interest, so they’re better if you don’t need immediate access.
CDs vs. High-Yield Savings Accounts
High-yield savings accounts allow account holders to earn significant interest on their balance. Many use these accounts for emergency funds. CDs are better if you’re saving for a big purchase because you can’t access your money until the term ends.
CDs vs. Money Market Accounts
Money market accounts have checking account features, like the ability to write checks or link a debit card. A CD is a time-deposit account, and a money market account isn’t, so it generally pays less than a CD.
CDs vs. Bonds
CDs and bonds are both considered safe-haven investments. They both yield higher returns than a standard savings account. However, when interest rates are high, CDs may be a better option. This works reverse for bonds, which are preferable when interest rates are low.
CDs and Taxes
Anytime you earn money, you should always be aware of the tax implications.
Are You Taxed When a CD Matures?
For CDs with terms of 12 months or less, interest is taxed at maturity. This can help defer taxable income to the next year. For CDs longer than 12 months, interest is typically taxed as it accrues each year, even if it’s not credited to your account until the CD matures.
Are CDs Taxed at the End of a Term?
Yes. The IRS considers CD interest to be taxable income. If you earn more than $10 in interest, you’ll receive a Form 1099-INT for tax reporting.
Does Cashing Out a CD Count as Income?
Only the interest portion of your CD is taxable income — not your original principal. If you withdraw funds early and pay a penalty, the IRS may allow you to deduct the penalty amount from your taxable income.
FAQ
CD accounts are straightforward, but you may still have questions about how they work and what to expect. Here are answers to some of the most common questions about CDs, rates and account options.- Is it better to put money in a CD or a money market account?
- Both CDs and money market accounts are federally insured savings options that offer a safe way to grow your money. CDs generally have higher interest rates but require you to keep your money locked in until maturity. On the other hand, money market accounts provide more flexibility, allowing withdrawals and check-writing options.
- Which banks offer the best CD rates?
- If you're wondering what banks have the best CD rates, top contenders currently include:
- Marcus by Goldman Sachs
- Synchrony
- First Internet Bank
- If you're wondering what banks have the best CD rates, top contenders currently include:
- How is interest paid out on a CD?
- CD interest is typically compounded daily or monthly. This means the interest you earn is added to the principal, so your balance grows faster as it earns interest on interest.
- What is the typical minimum deposit for a CD?
- The minimum deposit to open a CD varies by financial institution, but it's often between $500 and $1,000. Some banks may offer lower minimums for specific types of CDs.
- How do early withdrawal penalties work for CDs?
- If you withdraw money from your CD before the maturity date, you'll incur a penalty. This penalty will vary from bank to bank, but typically is a percentage of the interest earned on the CD. This could mean that the longer the CD term, the larger the penalty for early withdrawal will be.
- Can you roll over a CD into another account?
- Yes, your bank will let you know when your account has reached maturity and you can usually pick from the following:
- Withdraw your funds from the CD.
- Transfer the money to another account.
- Roll it over into a new CD.
- If you don't select an option, many providers will automatically roll your CD over into a new one.
- Yes, your bank will let you know when your account has reached maturity and you can usually pick from the following:
- What is CD laddering?
- A CD ladder is a strategy, advised by financial experts, where you open multiple CDs with staggered terms and deposits. For example, instead of putting $3,000 into a single long-term CD, you could split it into a six-month CD, a one-year CD and a three-year CD. This allows you to make the most of high rates over time while also having access to vested money sooner.
- What's a good CD rate?
- A good CD rate depends on the current market and your term length. When you are researching CDs, look for accounts from online banks and credit unions, as they often offer the highest CD rates.
- Can you add money to a CD after opening it?
- Typically, no — you can't add funds to a CD after it's opened unless you choose an add-on CD, which is designed for that purpose.
- What happens when a CD matures?
- When your CD reaches maturity, you can usually withdraw the funds, transfer them to another account or renew the CD for a new term. If you don't act, many banks automatically roll the funds into a new CD with the same term length.
More Resources for Banking
Best Banks
CD Account Rates
Best Savings Accounts
Best Checking Accounts
Best Money Market Accounts
*Capital One interest rates accurate as of Sept. 4, 2025. See website for all current rates.