Today’s CD Rates for July 7, 2025: Highest APYs range from 4.25% to 4.75%

Certificates of deposit (CDs) often offer the best rates for savings. However, to get the highest annual percentage yield (APY), you need to agree to keep your money with the financial institution for a set time period.

Right now, the best CD rates are on short-term CDs. The Federal Deposit Insurance Corporation (FDIC) reports that the average rate on a 12-month CD is 1.75%. However, the average for the top high-yield CDs is 4.63%, according to DepositAccounts.com. There are also six-month CDs with competitive rates, depending on the institution, as well as promotional CDs with higher rates.

Top CD rates today

The best CD yield from a national bank is Northern Bank Direct, with a 4.45% APY on a nine-month CD with a $500 minimum deposit requirement. The best local bank CD rate is T Bank with a 4.55% APY on a 12-month CD with a $1,000 minimum to earn the APY.

If you’re looking for the highest yield, no matter where you live, review the top CD rates today.

Today's best CD rates by term

The top CD rates change based on location, financial institution and other factors. Here are some of the best CD interest rates for different maturities:

• Bank of Washington: 4.50% three-month CD ($500 minimum to earn the APY)
• Indiana University Credit Union: 4.75% six-month CD ($2,000 minimum to earn the APY)
• Abound Credit Union: 4.50% 10-month CD ($500 minimum deposit)
• Elements Financial: 4.66% 12-month CD ($1,000 minimum to earn the APY)
• LendingClub: 4.25% 14-month CD (no minimum to earn the APY)
• USALLIANCE Financial: 4.45% 18-month CD ($500 minimum deposit)
• Kinetic Credit Union: 4.50% 24-month ($500 minimum to earn the APY)
• Raymond James Bank: 4.35% 36-month CD ($1,000 minimum deposit)
• Raymond James Bank: 4.40% 48-month CD ($1,000 minimum deposit)
• Keys Federal Credit Union: 4.50% 60-month CD ($500 minimum deposit)

Historic CD rates and Fed rate trends

Historically, long-term CDs pay higher yields than short-term CDs. However, recently, six-month CDs and 12-month CDs have had higher average yields.

Factors influencing current CD rates

One of the biggest factors influencing current CD rates is the federal-funds rate. As the Federal Reserve began cutting its benchmark rate toward the end of 2024, CD rates fell in response. However, the June 2025 decision to once again keep the Fed rate steady is likely to result in relatively stable CD interest rates for now.

Another factor that influences CD rates is the business goals of a bank or credit union. A financial institution balances the yield it pays to depositors with the amount of interest it earns from borrowers. For example, if a bank charges its customers 9% APR on a loan, the yield it pays depositors needs to be low enough that there’s a profitable difference. If a financial institution pays a yield of 4.65% on a six-month CD, it can attract depositors with a higher yield while still earning a profit on the funds it loans to borrowers.

Term length matters as well. If a financial institution thinks the Federal Reserve will cut interest rates soon, it might pay higher yields on short-term CDs to attract customers. When the CD matures, depositors will have to renew at a lower rate when the federal funds rate heads lower.

On the other hand, in an environment where rates might be expected to rise over time, a financial institution might offer a higher yield on long-term CDs to encourage depositors to agree to keep their money in place for a longer period — even if they miss out on potential interest rate hikes.

How to choose the right CD for your financial goals

As you compare CD rates, consider your financial goals and what you hope to achieve with your money. Here are some considerations:

• When do you need the money? Because CDs charge penalties if you withdraw the money early, consider when you want access to your funds. If you’re saving for a goal that’s a few months away, a short-term CD might make sense. On the other hand, if you want to guarantee your yield and don’t need access to the money immediately, a long-term CD could be a good choice.
• How much do you plan to commit to a CD strategy? As part of an overall portfolio, cash is likely to earn the lowest return. Including a CD strategy can help you increase yield on the cash portion of your portfolio, but it also means less liquidity for your cash. Some of the best rates are on jumbo CDs, but you need to commit a larger minimum deposit to qualify. Figure out how much you can put into CDs and consider using a CD laddering strategy if you want more frequent access to a portion of your money and are looking for CDs with smaller minimum requirements.
• What will future CD trends look like? As you compare today’s CD rates, read up on where experts predict yields will go next. If you think they’re likely to fall, you might want to lock in a higher rate on a medium- to long-term CD. On the other hand, if you think they will rise, a short-term CD could mature in time for you to take advantage of rising rates. CD laddering can potentially help you balance access with changing yields.

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