Top CD rates today: February 28, 2025 | There's still time to lock in up to 4.50% APY
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Key takeaways
- The current leading CD rate across terms is 4.50 percent APY, offered for three- and nine-month terms.
- For some CD terms, national averages are only yielding around one-third of the highest rates.
- After climbing for around two years, high-yield CD APYs have seen declines in response to Federal Reserve rate cuts in 2024. However, competitive CDs continue to earn around triple the national average rates.
As February comes to a close, the month has only seen four decreases in top certificate of deposit (CD) rates, possibly due to some banks holding annual percentage yields (APYs) steady after the Federal Reserve chose not to change its benchmark rate in late January. Highest yields continue to be attached to shorter terms, ranging from 4.40-4.50 percent APY on terms between three months and one year. Longer terms of two to five years are earning top APYs from 4.15-4.25 percent.
Bankrate monitors CD rates every weekday, and today’s top rates are listed in the table below, along with national average rates and the amount you’ll earn with $5,000 in a high-yield CD.
Today's CD rates by term
| CD term | Institution offering top APY | Highest APY | National average APY | Estimated earnings on $5,000 with top APY |
|---|---|---|---|---|
| 3-month | Bask Bank | 4.50% | 1.31% | $55 |
| 6-month | Bask Bank | 4.45% | 1.77% | $110 |
| 9-month | Bask Bank | 4.50% | N/A | $168 |
| 1-year | Bask Bank | 4.40% | 1.86% | $220 |
| 18-month | TAB Bank | 4.16% | 2.13% | $315 |
| 2-year | Popular Direct | 4.15% | 1.62% | $424 |
| 3-year | America First Credit Union | 4.15% | 1.54% | $649 |
| 4-year | America First Credit Union | 4.20% | 1.69% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.55% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of February 28, 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.
Is a certificate of deposit safe?
If you’re considering opening a CD with a bank, be sure it’s covered by the Federal Deposit Insurance Corp. (FDIC). Likewise, if it’s from a credit union, make sure it's covered by National Credit Union Administration (NCUA) insurance. This deposit insurance guarantees your money is safe were the financial institution to fail, as long as the money is within the limits and guidelines.
What the current rate environment means for CDs
Recent federal funds rate changes: The Federal Reserve lowered its benchmark interest rate three times in recent months, and the federal funds rate currently stands at a target range of 4.25-4.5 percent. Prior to these 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. Officials then decided at their January 2025 rate-setting meeting to leave the benchmark rate untouched.
What this means for deposit accounts such as CDs: Yields on competitive savings accounts and CDs tend to move in lockstep with 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 recent 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.
- 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.
- 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.
- 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.
- 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.