Top CD rates today: February 4, 2025 | 4.50% is now the highest APY on any CD
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Key takeaways
- The highest CD rate across terms is now 4.50 percent APY, offered for a three-month CD.
- Competitive CDs are around least three times the national average rates, for various terms.
- The Federal Reserve chose to leave rates untouched last week, after cutting them three times in recent months. As a result, APYs on some CDs could stabilize, although we've seen three drops in leading APYs already this week.
A certificate of deposit (CD) can be a useful tool for earning interest on your funds as you save for your financial goals. Things to consider before opening a CD include the annual percentage yield (APY), how much money you wish to deposit, and whether you’re able to lock in the funds for the duration of the CD’s term.
Today, we see drops in top rates for terms of three and six months, bringing those down to 4.50 percent APY and 4.45 percent APY, respectively. Yesterday, we saw a decrease in the top APY for a one-year term to 4.35 percent. These changes result from Bask Bank, CIBC Bank USA and Live Oak Bank lowering their rates. The top rate, across terms, is now 4.45 percent APY, offered on a six-month term.
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 top 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 | Quontic Bank | 4.50% | 1.30% | $55 |
| 6-month | Bask Bank | 4.45% | 1.74% | $110 |
| 9-month | America First Credit Union | 4.40% | N/A | $164 |
| 1-year | America First Credit Union | 4.35% | 1.82% | $218 |
| 18-month | TAB Bank | 4.16% | 2.10% | $315 |
| 2-year | America First Credit Union | 4.15% | 1.61% | $424 |
| 3-year | America First Credit Union | 4.15% | 1.53% | $649 |
| 4-year | America First Credit Union | 4.20% | 1.69% | $894 |
| 5-year | America First Credit Union | 4.25% | 1.52% | $1,157 |
Note: Annual percentage yields (APYs) shown are as of February 4, 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
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 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.
"Consider CD laddering if you want to thread the needle between locking up the money for too long and also taking advantage of higher interest rates right now," says Anna N’Jie-Konte, CFP, CEO of Poder Wealth Advisors.
Recent trends in top CD rates
Competitive CD APYs trended downward throughout 2024 and are decreasing so far in 2025. For example, the highest one-year CD APY at the start of January 2024 was 5.66 percent, whereas it was 4.35 percent on Feb. 4, 2025. Among the popular terms Bankrate monitors for this page, all rates saw steeper declines in the second half of 2024, as compared to the first half.
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.