Looking for a safe way to grow your savings? A certificate of deposit (CD) is a fixed-term savings account that offers a guaranteed return in exchange for keeping your money locked in for a set period.
CD rates have remained competitive this year, making now a smart time to secure a high APY—especially with uncertainty around future rate cuts. Whether you’re interested in a short-term option or want to lock in a long-term yield, the best deals are going fast.
In this guide, you’ll find the highest CD rates available for May 2025, broken down by term length. We’ll also compare online banks, credit unions, and traditional institutions, explain how to choose the right CD for your needs, and answer the most common questions about CDs.
Today’s Best CD Rates – May 2025
CD rates have remained competitive in 2025, with top offers reaching as high as 4.65% APY. Short-term CDs—especially those with terms between 6 and 13 months—are leading the pack, offering better yields than many long-term options. These rates are ideal for savers who want to lock in returns now without committing their money for years.
With the potential for interest rates to fall later this year, locking in a top rate today could be a smart move. Whether you’re looking for a high yield, low minimum deposit, or penalty-free access, there are solid options available across both banks and credit unions.
Highest CD Rates by Term
| Bank/Credit Union | APY | Term | Minimum Deposit | Early Withdrawal Penalty | Best For |
|---|---|---|---|---|---|
| Technology Credit Union | 4.65% | 6 months | $1,000 | 3 months of interest | Highest short-term rate |
| Vibrant Credit Union | 4.50% | 6 months | $5 | All earned interest | Low minimum deposit |
| Greenwood Credit Union | 4.50% | 12 months | $1,000 | 6 months of interest | Long-term savers |
| Raisin (via mph.bank) | 4.45% | 60 months | $1 | 6 months of interest | Long-term rate seekers |
| Marcus by Goldman Sachs | 4.15% | 7 months | $500 | None (No-Penalty CD) | Flexible access |
| Ally Bank | 3.65% | 11 months | $0 | None (No-Penalty CD) | No minimum deposit |
Top CD Offers by Term Length
The best CD rates often depend on how long you’re willing to lock in your money. Below, we’ve broken down the top options by term length to help you find the right fit for your savings goals.
Best 6-Month CD Rates
Short-term CDs are offering some of the highest yields right now, making them a great pick for savers who want flexibility without locking up funds long term.
- Technology Credit Union – 4.65% APY, $1,000 minimum deposit
- Vibrant Credit Union – 4.50% APY, $5 minimum deposit
- SouthEast Bank – 4.50% APY, $1,000 minimum deposit
- Liberty Federal Credit Union – 4.50% APY, $1,000 minimum deposit
Best 12-Month CD Rates
A one-year CD strikes a solid balance between return and liquidity. It’s long enough to offer meaningful interest, but short enough to keep your options open.
- Greenwood Credit Union – 4.50% APY, $1,000 minimum deposit
- First Internet Bank of Indiana – 4.40% APY, $1,000 minimum deposit
- Popular Direct – 4.40% APY, $10,000 minimum deposit
Best 24- to 36-Month CD Rates
Mid-term CDs are a smart choice if you want higher yields without committing for five years. They’re especially appealing in today’s rate environment.
- Bread Savings – 4.00% APY, $1,500 minimum deposit
- Synchrony Bank – 4.00% APY, no minimum deposit
Best 5-Year CD Rates
Long-term CDs work well for savers focused on steady returns. These options offer peace of mind if you don’t need access to your funds anytime soon.
- Raisin (via mph.bank) – 4.45% APY, 60-month term, $1 minimum deposit
- Synchrony Bank – 4.15% APY, no minimum deposit
- First Internet Bank of Indiana – 3.97% APY, $1,000 minimum deposit
Best No-Penalty CDs in May 2025
No-penalty CDs let you take your money out early without a fee. They’re ideal for rate-watchers or anyone who might need quicker access to their cash.
- Marcus by Goldman Sachs – 4.00% APY, 7-month term, $500 minimum deposit
- Ally Bank – 3.65% APY, 11-month term, no minimum deposit
- America First Credit Union – 4.05% APY, 12-month term, $500 minimum deposit
CD Rates: National Banks vs. Online Banks vs. Credit Unions
Not all CDs come from the same kind of institution—and where you open your CD can make a big difference in the rate you earn. Here’s how online banks, credit unions, and traditional banks stack up.
Online Banks – Often Highest Yields
Online banks typically offer the best CD rates. With lower overhead costs, they can pass those savings on to consumers in the form of higher APYs. Many also offer no-penalty CD options and low (or no) minimum deposit requirements.
- Ally Bank – Competitive rates, no minimum deposit
- Synchrony Bank – Consistently strong yields and flexible terms
- Marcus by Goldman Sachs – High rates plus no-penalty options
Credit Unions – Competitive Rates with Membership Requirements
Credit unions often match or beat the rates of online banks. However, some have membership restrictions based on geography, employer, or affiliations. That said, several credit unions are open to anyone nationwide through small donations or partner organizations.
- Technology Credit Union – Offers top short-term CD rates
- Greenwood Credit Union – Nationwide access with strong long-term CDs
- Vibrant Credit Union – Extremely low minimum deposit requirements
Traditional Banks – More Accessible, Lower Rates
Big-name banks may be convenient, especially if you prefer in-person service or already have a checking account with them. But their CD rates are usually lower than what online banks and credit unions offer.
- Wells Fargo, Chase, Bank of America – Often below 1.00% APY
- Good for branch access, but not ideal if maximizing yield is your priority
How to Choose the Right CD
With so many options, it’s easy to get overwhelmed. The key is to match the CD to your savings goals, timeframe, and flexibility needs.
Consider Your Timeline and Liquidity Needs
Ask yourself when you might need access to the money. If you’re planning to use these funds within a year, a 6- or 12-month CD is a safer bet. For long-term goals, a multi-year CD can lock in a better return.
Watch Out for Early Withdrawal Penalties
Most CDs charge a penalty if you withdraw funds before the term ends. This could be a few months of interest—or more. Always read the fine print before committing to a term, especially if you’re unsure about your timeline.
Laddering Strategy for Flexibility
A CD ladder involves spreading your deposit across multiple CDs with different maturity dates. For example, you could split $10,000 into five CDs, each maturing one year apart. This gives you regular access to your funds while still earning higher long-term rates.
CD Rates Trends for 2025
CD rates in 2025 remain strong, especially compared to just a few years ago. In 2022 and early 2023, many banks offered rates below 1.00%. Today, top yields are pushing 4.50% or higher.
Much of this increase stems from the Federal Reserve’s rate hikes throughout 2022 and 2023. While rate cuts could be on the horizon later this year, banks are still offering elevated CD rates—especially for shorter terms. That’s why now may be one of the best times to lock in.
Conclusion
CDs are offering some of the best returns we’ve seen in years. Whether you’re saving for something short-term or want a secure place to earn interest over the next few years, there are excellent options available right now.
If you’re thinking about opening a CD, don’t wait too long—rates may not stay this high. Compare today’s top CD rates and choose the one that fits your goals and timeline.
Frequently Asked Questions
What happens when a CD reaches maturity?
When a CD reaches the end of its term, you can withdraw your money along with the interest earned. Most banks give you a grace period—usually 7 to 10 days—to decide whether to cash out or roll it into a new CD. If you do nothing, the CD may automatically renew at the current rate, which could be lower than what you originally locked in.
Can I add money to a CD after it’s opened?
No, most CDs don’t allow additional deposits after the account is opened. The amount you deposit at the start is typically locked in for the full term. If you want more flexibility to add funds over time, a high-yield savings account or a money market account might be a better fit.
Are CD rates negotiable?
Generally, CD rates are fixed and not negotiable—especially at online banks and national institutions. However, some smaller banks or local credit unions may be willing to offer slightly better rates if you’re depositing a large amount or have an existing relationship with them.
Do CDs offer compounding interest?
Yes, most CDs compound interest daily or monthly, but how often the interest is compounded depends on the bank. The APY you see already reflects the effects of compounding, so it gives you a true picture of your expected return.
Is my money in a CD insured?
Yes, as long as you open your CD at an FDIC-insured bank or NCUA-insured credit union, your funds are protected up to $250,000 per depositor, per institution. This insurance covers both the principal and any earned interest.
