Key Takeaways
- Since the Federal Reserve made three interest rate cuts in late 2024, CD yields have drifted gradually lower.
- But one large U.S. bank—Marcus by Goldman Sachs—recently moved rates the other way, boosting its APYs for four standard CDs ranging from 6 months to 3 years and two no-penalty CDs.
- Still, you can earn quite a bit more by shopping our daily rankings of the best nationwide CD rates, some of which pay as much as a half percentage point more than Marcus’ new APYs.
- While it’s true the top CDs are generally offered by small- to medium-sized banks and credit unions, federal insurance provides identical protection of your deposits no matter the institution’s size.
- It’s generally expected that interest rates will move lower this year and next. If that proves true, opening a top CD today means you’ve locked in a great rate you’ll be happy to have in the future.
Most CD Rates Are Down in 2025—But These Six Offers Pay More Now Than Last Week
In a boon to savers, the Federal Reserve’s historic 2022–2023 rate-hike campaign to combat post-pandemic inflation triggered a surge in certificate of deposit (CD) rates—pushing them to 20-year highs in late 2023. The record rates reached into 5% territory for every CD term from 3 months to 5 years, and among some short-term CDs, the top rate even surpassed 6% for brief periods.
But when inflation cooled considerably in 2024, the Fed shifted to a cutting phase for the federal funds rate, with reductions in September, November, and December. Though the Fed later implemented a January rate pause, the three 2024 rate cuts had already nudged savings and CD rates somewhat lower.
With the interest rate environment now a bit in limbo, one bank has upped its APYs to attract deposits. Marcus by Goldman Sachs boosted several CD rates on Thursday, in some cases by more than a quarter percentage point, bumping up what you lock in on terms of 6 months to 3 years.
In addition, Marcus raised the rates of two no-penalty CDs by more than an eighth of a percentage point.
No-penalty CDs may seem like a great idea if you’re concerned about needing to cash out early. But you’re usually charged a steep price for that flexibility, with no-penalty CD rates usually quite a bit lower than what standard CDs are paying. So be sure to shop around, checking the best CD rates available, and carefully thinking through how much and how long you can commit.
The Best CD Rates Come From Lesser-Known Players
If you want to lock in the highest return possible on your money, better offers continue to be available at smaller banks and credit unions. Though it may seem safer to stick with a brand-name bank, the truth is that your deposits at any FDIC-insured bank or NCUA-insured credit union are equally protected—covering as much as $250,000 in deposits per person, per institution. Federal coverage doesn’t vary based on bank or credit union size.
CDs also present an easy opportunity for stashing your cash elsewhere, given a CD’s “park it and forget it” nature. Generally, you’ll only meaningfully interact with your CD account twice: once when you open it and another time when the CD matures. While you’ll receive periodic interest credits and statements during the CD’s term, these don’t require action on your part, making it very easy to hold CDs somewhere other than your primary bank.
If you’re willing to venture to an institution that may not be quite as familiar to you as the biggest U.S. banks, our daily ranking of the best CD rates can lead you to at least 15 nation-leading offers—all of which pay more than today’s new rates from Marcus. We also publish daily term-by-term rankings (linked below the graph), featuring the following nation-leading rates.
Markets currently predict that the Fed will lower its benchmark interest rate by another half point by the end of 2025. That means the rates on high-yield savings accounts and CDs down the road are expected to be lower than they are now. Locking in one of today’s top CD rates means you’ll be guaranteed your high return for the duration of the CD.
Daily Rankings of the Best CDs and Savings Accounts
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.