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Key Takeaways
- Today’s highest CD rate is 4.94% for a jumbo 6-month CD.
- CD rates from online banks are commonly twice as high as the national average rates.
- CD ladders let you leverage high rates without locking up all of your money long-term.
A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you’ll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can’t touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year’s worth of interest if you withdraw funds from a five-year CD before it reaches maturity.
The best interest rates on CDs—certificates of deposit—range as high as 4.94% today, which is far higher than CD rates were a few years ago. Here’s an overview of the best CD rates for you.
Highest CD Rates Today by Term
Below is a quick look at today’s top CD rates by term to help you compare and find the best option for your savings goals.
- 3-month CD rates: These are a good option for short-term savings goals. The current average annual percentage yield (APY) on a three-month CD sits at 1.29%, but the highest rate is 4.38%. The average rate is unchanged from a week ago.
- 6-month CD rates: If you’re interested in a short-term CD with high yields, consider a six-month CD. The best rate today is 4.94%. The current average APY for a six-month CD is 1.79%, about the same as last week.
- 1-year CD rates: For a one-year CD, one of the most popular CD terms, the highest interest rate available is 4.84%. That rate hasn’t changed much since last week. The average APY on that CD now stands at 1.79%, unchanged from a week ago.
- 2-year CD rates: If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.25%. The top rate last week was 4.28%. The average APY for this CD term is 1.62%, flat to last week’s average.
- 3-year CD rates: Today, the highest rate on a three-year CD stands at 4.14%, so you’ll want to shop around for that rate or something near it. The average APY is 1.55%.
- 5-year CD rates: On a five-year CD, the highest rate today is 4.12%. APYs are averaging 1.57%, similar to last week.
- Jumbo CD rates: The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.83%. Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there’s no universally agreed-upon definition regarding what qualifies as a “jumbo” CD. Some banks and credit unions slap the label “jumbo” on CDs you can open with $50,000, $25,000 or even less.
This Week’s Best CD Rates
Here’s a look at this week’s most competitive rates on certificates of deposit.
Check out other top CD rate pages offering competitive APYs:
Average CD Rates
Latest CD Rates News
The federal funds rate is one of the key drivers of the interest rates banks offer on CDs. This rate represents the interest banks charge each other for overnight loans, and it is influenced by the Federal Reserve’s monetary policy decisions.
The Federal Open Market Committee (FOMC) meets eight times a year to review and adjust the target range for the federal funds rate. At each meeting, the committee chooses to maintain, raise or lower the rate. These changes affect the short-term interest rates financial institutions offer, including those on CDs. As a result, it’s necessary to follow the FOMC’s decisions to anticipate where CD rates are heading.
The FOMC kept the federal funds rate unchanged this year until its September 18 meeting, when it lowered the rate by 25 basis points, or one-quarter of a percent. The committee reduced the rate again by the same amount at its October 30 meeting, bringing it to its current range of 3.75% to 4.00%, the lowest level in three years.
The FOMC’s next meeting is scheduled for December 9–10. While it’s uncertain whether another rate cut will occur at that time, the Fed may opt to lower the rate again in response to a slowing labor market and rising unemployment.
Read more: CD Interest Rates Forecast: Will CD Rates Go Up In 2025?
Is Now a Good Time To Buy a CD?
Although the federal funds rate has declined this year and average CD rates have followed suit, CD rates remain higher than they were a decade ago.
With top rates still above 4.00% APY, now may be a good time to lock in a high rate before another potential rate cut in December or early 2026. Many of the best CD rates also continue to outpace inflation, with the Consumer Price Index rising 3.00% over the past 12 months, as of September 2025.
When you open a CD, you agree to keep your money locked in for a set term. Withdrawing early typically results in a penalty, but you’re guaranteed the return promised at the time of deposit, even if your bank later lowers its rates.
For savers who can afford to set aside funds for a few months or more, CDs offer a more stable return than high-yield savings accounts, whose variable rates can drop immediately after an FOMC decision.
Ultimately, whether to invest in a CD depends on your financial situation. Now may be an opportune time to secure one of the highest available rates, as rates are more likely to hold steady or decline rather than rise. However, if you carry high-interest debt, it’s usually wiser to pay that off first, since the interest you’re paying likely outweighs the APY you’d earn from a CD.
How CDs Work
To open a CD, start by establishing an account with a bank and making a one-time, upfront payment, which constitutes your principal. Many banks require you to deposit a minimum amount—which can be anywhere from hundreds to thousands of dollars—to open a CD. At credit unions, CDs are often referred to as share certificates.
The timer on your CD term begins once you deposit your principal. You begin earning interest, and the bank or credit union will provide you with monthly or quarterly statements reflecting how much you’re accumulating.
Since early withdrawal penalties eat into your earnings, it’s in your best interest to avoid tapping your CD before the term matures. In some cases, you may even face early withdrawal penalties so stiff they cut into your principal.
Find The Best CD Rates Of 2025
Methodology
Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.
Forbes Advisor’s best CD rates by institution ranks the highest currently available APYs in our database of CD offerings. Rates are updated weekly.
Frequently Asked Questions (FAQs)
How do you build a CD ladder?
You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD.
Follow this plan and you’ll have one better-yielding five-year CD maturing each year. If you’re ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD.
Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate.
CDs usually come with zero fees, meaning your money won’t be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts.
You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won’t need access to your cash in the meantime.