Top CD rates today: April 25, 2025 | 4.40% is now the highest APY on any CD

Today, the leading rate across certificate of deposit (CD) terms has fallen to 4.40 percent annual percentage yield (APY). This rate is offered for three- and six-month terms. Prior to lowering its six-month CD rate, Bread Savings had offered a 4.50 percent APY for this term. This marks the fourth drop in top rates this month due to banks lowering their APYs, among banks and terms monitored for this page. Comparatively, Popular Direct recently raised the APY on its one-year CD to 4.35 percent.

Check out Bankrate’s table below for the highest APY on CD terms from three months to five years, as well as how much $10,000 would earn for each term.

Today's top CD rates by term

Note: Annual percentage yields (APYs) shown are as of April 25, 2025. APYs for some products may vary by region.

N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

 

How to take advantage of current CD rates

Mostly, yields on competitive CDs have been decreasing this year, although many shorter-term CDs are offering yields comparable to high-yield savings accounts. In a falling-rate environment, a fixed-rate CD’s advantage over a variable-rate savings account is that the CD guarantees you’ll earn the same APY until it matures.

Many shorter-term CDs are currently earning higher APYs than longer ones, yet one way to get the best of both worlds is through a CD ladder. This involves opening multiple CDs of varying term lengths. This way, some of your money will earn the top short-term rates, while the remainder will benefit from a guaranteed rate for a longer timeframe.

"Employing [the CD ladder] approach allows you to strike a balance between liquidity (i.e. access to funds) and yields at different terms to help mitigate the risk associated with timing the rate environment," says Derik Farrar, head of personal deposits at U.S. Bank.

Learn more: CD ladder: What it is and how to build one

What the current rate environment means for CDs

Recent federal funds rate changes: The Federal Reserve has held the Federal Funds rate steady so far in 2025. This comes after officials cut the rate three times in late 2024. The rate currently stands at a target range of 4.25-4.5 percent. Prior to the 2024 rate cuts, the Fed had gradually raised rates 11 times in 2022 and 2023, and rates stood at a 23-year high leading up to the September 2024 cut.

What this means for deposit accounts such as CDs: Yields on competitive savings accounts and CDs tend to fluctuate based on the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. The Fed’s previous rate cuts spurred decreases in CD APYs, although officials' current holding pattern could mean an overall stabilization in CD rates.

Prior to the September 2024 rate cut, the Fed had held rates steady since July 2023. Meanwhile, top CD APYs peaked in late 2023 and have since been decreasing gradually, as illustrated below.

CD glossary

Here are some terms you’ll likely come across when choosing a CD.

• Add-on CD: An add-on CD enables you to make additional deposits after your initial investment. This feature affords more flexibility than traditional CDs, which only allow one deposit at the beginning of the term.
• Annual percentage yield (APY): A percentage that indicates how much interest a CD earns in one year, which takes into account the effect of compounding.
• Bump-up CD: Also known as a “raise-your-rate CD,” a bump-up CD provides savers with the option to increase the CD’s APY without having to change its term. Generally, only one rate increase is allowed during its term.
• Brokered CD: A type of CD issued by a bank but sold through a brokerage firm or other financial institution.
• CD ladder: An investment strategy that involves purchasing multiple CDs with varying maturity dates to provide liquidity and take advantage of higher rates.
• Early withdrawal penalty: A fee charged if funds are withdrawn from a CD before the maturity date. Penalties often range anywhere from 90 days to 365 days’ worth of interest.
• Grace period: A specific time after the maturity date during which an account holder can make changes to the CD without penalties. A grace period typically ranges from five to 14 days.
• IRA CD: A CD that’s held within an individual retirement account.
• Jumbo CD: A CD that has a high minimum balance requirement, typically $100,000, sometimes as low as $95,000. This type of CD tends to offer a higher interest rate than regular CDs with the same term.
• Minimum opening deposit: The lowest amount of money required to open a CD account, which can vary by institution. Some institutions don’t have a minimum deposit requirement.
• No-penalty CD: A type of CD that allows you to withdraw your money without facing a penalty while providing a fixed APY.
• Promotional CD: Also known as a bonus or special CD, it’s a CD with an above average APY. These may be offered by banks and credit unions as a way to obtain new customers.
• Share certificate: At credit unions, CDs are often referred to as share certificates.

• Research methodology