Best CD Rates Of June 2025 - Up to 4.49% | Bankrate

Best CD Rates Of June 2025 - Up to 4.49% | Bankrate

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Note: APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its editorial listings.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.At its May 7 meeting, the Federal Reserves Federal Open Market Committee decided to hold its benchmark federal funds rate steady for the third straight meeting since December 2024. Previously, the Fed cut rates by a total of 100 basis points — or one percentage point — throughout its final three meetings in 2024. The federal funds rate continues to rest at a range of 4.25-4.5 percent.Though CD rates have fallen since late 2023, competitive CD rates are still higher than the national average CD rates. What’s more, high-yielding CD rates continue to outpace the rate of inflation.When looking for a CD, seek a competitive interest rate, a term length that works for you and FDIC or NCUA insurance coverage. Also, familiarize yourself with early withdrawal penalties to avoid potentially losing money if you need your funds for an unexpected expense.Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield thats much higher than average. Here are the current average rates as of Jun 10, according to Bankrates most recent survey of institutions:Bankrate made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.Bankrate made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.Some banks have promotional CD rates, even some of the largest banks. There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The CD may renew for a different term. The promotional offers are as of May 25.When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.Here’s where you’ll find some of the top-yielding CDs by term.Note: Annual percentage yields (APYs) shown were updated between June 3 and June 9. Bankrates editorial team validates this information regularly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.You can find CDs that are outpacing current inflation in this rate environment. A competitive yield helps your balance grow over time through interest earned compounding.You can find CDs that are outpacing current inflation in this rate environment. A competitive yield helps your balance grow over time through interest earned compounding.You’ll want to assess when you’ll need this money so that you try and avoid paying an early withdrawal penalty.You’ll want to assess when you’ll need this money so that you try and avoid paying an early withdrawal penalty.You want to know the worst-case scenario if you have to make an early withdrawal.You want to know the worst-case scenario if you have to make an early withdrawal.Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD before the year is up.When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money, and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty. A bank may require that you wait at least some time after opening a no-penalty CD — generally around seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.A CD is useful when you want to earn a consistent, fixed yield on your lump sum of cash over the term of your savings account, especially if interest rates are declining. It also encourages you to be disciplined in leaving your money untouched as it earns interest because a CD is a time deposit account and imposes an early withdrawal penalty if you withdraw your funds before the CD matures.A good time to open a CD is when you have a lump sum of money that you want to sock away for a specific period of time in the hopes of consistently growing interest. Also, it’s worth opening a CD when you know you have a specific timeframe in mind when you think you’ll need this money. A six-month CD, for example, could be a good place to put your money aside for an insurance premium that’s due in eight months.Before you choose a CD, weigh the pros and cons to ensure youre making the right investment choice for your financial situation.Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS.For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS.For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.Your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government.For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.Your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government.For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.A good CD rate is one thats higher than the national average – and in the current rate environment it should be outpacing inflation. The consumer price index (CPI) was 2.3 percent for April 2025, so your APY should be higher than this.Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time.For example, the national average APY for 1-year CDs is 1.99 percent as of June 10, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.40 percent.A good CD rate is one thats higher than the national average – and in the current rate environment it should be outpacing inflation. The consumer price index (CPI) was 2.3 percent for April 2025, so your APY should be higher than this.Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time.For example, the national average APY for 1-year CDs is 1.99 percent as of June 10, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.40 percent.Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.Banks generally give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take.If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.Banks generally give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take.If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.Written by: Matthew Goldberg, Senior Consumer Banking ReporterMatthew is a senior consumer banking reporter with more than two decades of journalism and financial services expertise, helping readers make informed decisions about their personal finance needs. His banking career includes being a banker in New York City and a bank officer at one of the nations largest banks. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), chairing its training member engagement committee and is co-chair of its Finance Committee.I’ve been a personal finance writer and editor for more than two decades specializing in money management, deposit accounts, investing, fintech and cryptocurrency. Throughout the years of crunching numbers and words, I’ve been passionate about helping readers make informed decisions on managing their money with uniquely helpful advice. I have an MBA from George Washington University, and am an active member of both the National Press Club and SABEW, where I’ve volunteered as a judge for their respective journalism awards programs. Recently, I was elected Treasurer of the Society of Professional Journalists’ SDX Foundation (Washington, DC chapter), raising scholarship money for aspiring young journalists.Reviewed by: Greg McBride, CFA, Chief Financial Analyst, BankrateGreg McBride is a CFA charterholder with more than a quarter-century of experience analyzing banking trends and personal finance. As Bankrates Chief Financial Analyst, he leads the team that researches and provides guidance on savings vehicles, from high-yield savings accounts to CDs. Through Bankrate.coms Money Makeover series, he has helped consumers develop their saving habits, maximize their returns on deposit accounts, and make smart decisions about where to keep their cash. He is frequently quoted by major media outlets on banking trends and Federal Reserve policy impacts on deposit rates.Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.To find the best CD rates, we regularly survey CD offerings from the banks and credit unions that continually offer the most competitive CD rates. We also score these institutions on their CD offerings, including APY, minimum deposit requirements, term selection and more.The banks and credit unions on this page are selected based on their CD APYs, minimum opening deposit requirements and Bankrate’s score for their CDs. Only banks and credit unions with broadly available CD offerings made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions BankAlliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions BankEstimate how much money you will earn with a fixed APY when your CD matures.Weigh the benefits and drawbacks of CD accounts to determine if this savings strategy is right for you.Stay informed about todays highest CD yields and what banks and credit unions offer them.

Note: APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its editorial listings.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.


At its May 7 meeting, the Federal Reserve's Federal Open Market Committee decided to hold its benchmark federal funds rate steady for the third straight meeting since December 2024.


Previously, the Fed cut rates by a total of 100 basis points — or one percentage point — throughout its final three meetings in 2024. The federal funds rate continues to rest at a range of


4.25-4.5 percent.


Though CD rates have fallen since late 2023, competitive CD rates are still higher than the national average CD rates. What’s more, high-yielding CD rates continue to outpace the rate of


inflation.


When looking for a CD, seek a competitive interest rate, a term length that works for you and FDIC or NCUA insurance coverage. Also, familiarize yourself with early withdrawal penalties to


avoid potentially losing money if you need your funds for an unexpected expense.


Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average. Here are the current average rates


as of Jun 10, according to Bankrate's most recent survey of institutions:


Bankrate made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were


also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer


high yields, as well as some of the nation’s largest banks.


Bankrate made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were


also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer


high yields, as well as some of the nation’s largest banks.


Some banks have promotional CD rates, even some of the largest banks. There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to


be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)


These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The CD may renew for a different term. The promotional offers are as of May 25.


When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means


you’re making a commitment to the bank that you’ll keep your money in the account for one year.


Here’s where you’ll find some of the top-yielding CDs by term.


Note: Annual percentage yields (APYs) shown were updated between June 3 and June 9. Bankrate's editorial team validates this information regularly. APYs may have changed since they were last


updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.


You can find CDs that are outpacing current inflation in this rate environment. A competitive yield helps your balance grow over time through interest earned compounding.


You can find CDs that are outpacing current inflation in this rate environment. A competitive yield helps your balance grow over time through interest earned compounding.


You’ll want to assess when you’ll need this money so that you try and avoid paying an early withdrawal penalty.


You’ll want to assess when you’ll need this money so that you try and avoid paying an early withdrawal penalty.


You want to know the worst-case scenario if you have to make an early withdrawal.


You want to know the worst-case scenario if you have to make an early withdrawal.


Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.


Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also


tend to have strict early withdrawal penalties.


If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90


days of simple interest on a one-year CD if you withdraw from that CD before the year is up.


When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money, and there’s no chance of needing it before the term is up. They’re often good for


CD ladders or other CD investing strategies in which timing is important.


Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early


without being charged a penalty. 


A bank may require that you wait at least some time after opening a no-penalty CD — generally around seven days — before you’re able to withdraw from the CD, and some banks don’t allow for


partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.


When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds.


As a result, you’re willing to give up a little return for added liquidity.


Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may


open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for


the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.


When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for


limited potential upside.


A CD is useful when you want to earn a consistent, fixed yield on your lump sum of cash over the term of your savings account, especially if interest rates are declining. It also encourages


you to be disciplined in leaving your money untouched as it earns interest because a CD is a time deposit account and imposes an early withdrawal penalty if you withdraw your funds before


the CD matures.


A good time to open a CD is when you have a lump sum of money that you want to sock away for a specific period of time in the hopes of consistently growing interest. Also, it’s worth opening


a CD when you know you have a specific timeframe in mind when you think you’ll need this money. A six-month CD, for example, could be a good place to put your money aside for an insurance


premium that’s due in eight months.


Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.


Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income,


according to the IRS.


For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.


Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income,


according to the IRS.


For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.


Your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within


the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full


faith and credit of the U.S. government.


For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.


Your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within


the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full


faith and credit of the U.S. government.


For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.


CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are


withdrawn during the first six or seven days after the account is opened.


CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are


withdrawn during the first six or seven days after the account is opened.


A good CD rate is one that's higher than the national average – and in the current rate environment it should be outpacing inflation. The consumer price index (CPI) was 2.3 percent for April


2025, so your APY should be higher than this.


Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your


money will remain in its hands for the designated length of time.


For example, the national average APY for 1-year CDs is 1.99 percent as of June 10, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.40 percent.


A good CD rate is one that's higher than the national average – and in the current rate environment it should be outpacing inflation. The consumer price index (CPI) was 2.3 percent for April


2025, so your APY should be higher than this.


Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your


money will remain in its hands for the designated length of time.


For example, the national average APY for 1-year CDs is 1.99 percent as of June 10, 2025, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.40 percent.


Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their


customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.


Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their


customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.


You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the


government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing


address on file.


You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the


government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing


address on file.


Banks generally give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for


your CD may be the last thing on your mind, experts say it’s an important step to take.


If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an


individual after their death.


Banks generally give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for


your CD may be the last thing on your mind, experts say it’s an important step to take.


If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an


individual after their death.


As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest —


and potentially some of your principal — by making an early withdrawal, however.


As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest —


and potentially some of your principal — by making an early withdrawal, however.


Written by: Matthew Goldberg, Senior Consumer Banking Reporter


Matthew is a senior consumer banking reporter with more than two decades of journalism and financial services expertise, helping readers make informed decisions about their personal finance


needs. His banking career includes being a banker in New York City and a bank officer at one of the nation's largest banks. Matthew is currently a member of the Board of Governors at the


Society for Advancing Business Editing and Writing (SABEW), chairing its training member engagement committee and is co-chair of its Finance Committee.


I’ve been a personal finance writer and editor for more than two decades specializing in money management, deposit accounts, investing, fintech and cryptocurrency. Throughout the years of


crunching numbers and words, I’ve been passionate about helping readers make informed decisions on managing their money with uniquely helpful advice. I have an MBA from George Washington


University, and am an active member of both the National Press Club and SABEW, where I’ve volunteered as a judge for their respective journalism awards programs. Recently, I was elected


Treasurer of the Society of Professional Journalists’ SDX Foundation (Washington, DC chapter), raising scholarship money for aspiring young journalists.


Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate


Greg McBride is a CFA charterholder with more than a quarter-century of experience analyzing banking trends and personal finance. As Bankrate's Chief Financial Analyst, he leads the team


that researches and provides guidance on savings vehicles, from high-yield savings accounts to CDs. Through Bankrate.com's Money Makeover series, he has helped consumers develop their saving


habits, maximize their returns on deposit accounts, and make smart decisions about where to keep their cash. He is frequently quoted by major media outlets on banking trends and Federal


Reserve policy impacts on deposit rates.


Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive


membership policies.


To find the best CD rates, we regularly survey CD offerings from the banks and credit unions that continually offer the most competitive CD rates. We also score these institutions on their


CD offerings, including APY, minimum deposit requirements, term selection and more.


The banks and credit unions on this page are selected based on their CD APYs, minimum opening deposit requirements and Bankrate’s score for their CDs. Only banks and credit unions with


broadly available CD offerings made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.


Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco


USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect,


Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus


Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, EverBank, Fifth Third Bank, First Citizens Bank,


First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union,


Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T


Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank,


Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union,


Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security


Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas


Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union,


WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank


Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco


USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect,


Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus


Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, EverBank, Fifth Third Bank, First Citizens Bank,


First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union,


Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T


Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank,


Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union,


Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security


Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas


Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union,


WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank


Estimate how much money you will earn with a fixed APY when your CD matures.


Weigh the benefits and drawbacks of CD accounts to determine if this savings strategy is right for you.


Stay informed about today's highest CD yields and what banks and credit unions offer them.