Best CD rates today: Lock in guaranteed yields of up to 4.35% APY now before banks continue lowering rates — May 15, 2025

Despite the Federal Reserve maintaining its benchmark rate unchanged since December, many banks continue reducing their certificate of deposit yields. This independent bank action means most savers might be better off securing today’s rates before they potentially drift lower. Top CDs still offer up to 4.35% APY that significantly outpace the 2.3% inflation reported this week and provide more than x10 the 0.41% average returns you get with traditional savings.

The disconnect between the Fed’s policy hold and individual bank decisions stems from institutions adjusting to changing economic conditions and their own liquidity needs. Several online and traditional banks have already trimmed their CD offerings by 0.05% to 0.25% APY lower in recent weeks. This trend is likely to continue or even gain momentum following a Fed rate cut.

However, opening a CD doesn’t have to mean locking in your funds. You can maintain flexibility while still securing today’s rates before potential future declines by implementing a CD ladder strategy. By distributing your savings across multiple CDs with staggered maturity dates, you create regular access to portions of your money while still locking in current competitive returns before banks continue their adjusting them lower.

Whether you’re building up your emergency fund, growing your savings or working toward other financial goals, here’s where to find today’s highest rates on FDIC-insured CDs across various terms — with low or no minimums required to get started.

Best CD rates for Thursday, May 15, 2025

Today’s best rates of returns are found at FDIC-insured digital banks and online accounts paying out up to 4.35% APY with no or low minimums at Bread Financial, Alliant Credit Union and other trusted providers as of Thursday, May 15, 2025.

• Bread Financial Savings CDs — 4.35% APY on 6-month terms with $1,500 minimum

• Valley Bank Online CDs — Up to 4.30% APY on 3-month terms with $25,000 minimum and 3.90% APY on 12-month terms with $500 minimum

• Alliant Credit Union CDs — 4.10% APY on 6-month terms with $1,000 minimum

• Discover Bank CDs — 4.00% APY on 12-month terms with no minimum

• Raisin/American First Credit Union CDs — 4.00% APY on 12-month terms with $1 minimum

• Barclays Bank Online CDs — 4.00% APY on 12-month terms with no minimums

• CIT Bank No-Penalty CD — 3.50% APY on 11-month term with $1,000 minimum

Online-only banks and digital accounts may not be as readily familiar as bigger names, though each is FDIC-insured or partners with an FDIC-insured bank to offer deposit accounts that are protected for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) — just like those at your neighborhood bank.

Dig deeper: Smart money moves to make before and after Fed rate cuts

How a certificate of deposit works

A CD is a type of savings or deposit account that’s offered by banks, credit unions and other financial institutions. Unlike a traditional savings account, a certificate of deposit holds your money for a fixed period of time — terms of one month to five years or longer — paying out your initial deposit and interest you’ve earned after the term expires or “matures.”

Typical CD rates are fixed, which means you’re guaranteed a rate of return that doesn’t change. While you can’t add to or access your cash until the CD matures, the trade-off is a safe, stable way to earn a much higher yield than you’d find with a traditional savings account.

Dig deeper: How CDs work — including 7 types for boosting your savings

Traditional CD rates

The Federal Deposit Insurance Corporation tracks monthly average interest rates paid on certificates of deposit and other savings accounts. Created by Congress, the FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Here’s how FDIC national deposit rates on a $10,000 minimum deposit compare between April and March 2025 on traditional low-interest deposit accounts.

Pulling back on average rate updates over the past year shows minimal movement for traditional savings accounts with bigger movement on short- and long-term CDs.

The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Dig deeper: Best low-risk investments for retirees with steady returns on your nest egg

CD rates in the news

CD rates strongly track with the key interest rate set by the Federal Reserve, the U.S.’s central bank. This Fed rate is the benchmark that affects rates on deposit accounts, loans, mortgages, credit cards and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield accounts and money market accounts.

After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate on September 18, followed by two additional quarter-point cuts after its November and December policy meetings.

May 7, 2025: Fed pauses rate cuts for a third time

At the conclusion of its third rate-setting policy meeting of 2025 on May 7, 2025, the Federal Reserve announced it was leaving the federal funds target interest rate unchanged at 4.25% to 4.50% for a third time after three cuts in 2024: a jumbo half point in September 2024, followed by quarter-point cuts in November and December.

In its post-meeting statement, the Federal Reserve said it was maintaining the target range in its continuing effort to achieve “maximum employment” and tame inflation to 2%.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the Fed said in its statement, noting, “Uncertainty around the economic outlook has increased.”

“In considering the extent and timing of additional adjustments,” the Fed said it would “carefully assess incoming data, the evolving outlook, and the balance of risks.”

After March’s meeting, the Fed updated its rate projections to just two quarter-point cuts in 2025, seeing slower growth and higher inflation ahead.

What to expect at the Fed’s next policy meeting: June 17–18, 2025

It’s too early to predict what the Federal Reserve will decide at its next policy meeting on June 17 and June 18, 2025, though with the Fed hinting at future rate cuts this year, it could be that we see another quarter-point cut in June. The CME FedWatch Tool, which measures market expectations for Fed fund rate changes, already predicts a more than 70% chance that the Fed keeps rates where they are.

Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate, with data indicating sticky inflation from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023.

Fresh jobs data released on May 2 from the Bureau of Labor Services showed employers adding 177,000 jobs to payrolls in April — surpassing projections yet lower than the revised 185,000 roles added in March. Unemployment was unchanged at 4.2%.

The consumer price index released on May 13 showed the annual inflation rate easing to 2.3% in April from 2.4% reported in March — its lowest annual rate since February 2021, yet still higher than the Fed’s 2% goal. Overall prices rose 0.2% for April after falling 0.1% in the previous month, with economists warning the larger impacts of tariff policies won’t be clear until later in the year. The producer price index released on April 11 showed wholesale prices falling 0.4% in March — the largest monthly decline since October 2023 — with gasoline prices plunging 11.1%. Experts are keeping an eye on a fresh producer price index, a measure of wholesale inflation, due later today.

At a post-meeting press conference on May 7, Federal Reserve Chair Jerome Powell reiterated the Fed’s wait-and-see approach to cutting rates, saying, “The data may move quickly or slowly, but we do think we’re in a good position where we are to let things evolve and become clearer in terms of what should be the monetary policy response.” He also pushed back on Pres. Trump’s push for “preemptive cuts,” saying, “It’s not a situation where we can be preemptive, because we actually don’t know what the right responses to the data will be until we see more data.”

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Wednesday, June 18, 2025, at 2 p.m. ET.

Dig deeper: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances

How to compare CDs

When choosing the best certificate of deposit for your budget, compare these key factors against your specific savings or financial goals.

• Term length. A CD is ideal for saving toward a specific goal with money you’re not likely to need until the account matures. Look to shorter terms for saving toward, say, a family holiday or home renovation. Terms of one to five years or longer can help you lock in today’s highest APYs before interest rates inch lower.

• Rate of return. Look for the highest APY for the term you’re interested in. The APY is the amount of interest the CD earns in a year — including compounding. Unlike a savings account, CD rates are fixed, meaning they won’t change over the life of your term.

• Minimum deposit. While you can find CDs without minimum starting deposits, some CDs require $100 to $1,000 to open an account. Generally, if you have the money for a higher initial deposit, you can earn a higher APY — just be sure that amount isn’t a hardship on your budget.

• Type of bank or financial institution. Today’s best interest rates are offered by digital banks, with few exceptions among traditional brick-and-mortar banks or credit unions. If you aren’t comfortable with an online-only bank, look to a high-yield savings account or money market account offering a high rate without withdrawal penalties.

• Penalties and fees. Life happens, and you might find yourself needing to tap into your money before the CD matures. Early withdrawal penalties are typically expressed in months of interest you’re giving up — for example, 90 days of interest for CD terms of up to 24 months. Often the longer the term, the higher the penalty fee.

Dig deeper: When is it worth it to break a CD? An expert’s thoughts on early withdrawals and breaking even

Benefits of a certificate of deposit

• Guaranteed returns. With a CD, you make one deposit and earn a guaranteed interest rate over your term that’s yours after the CD matures.

• Higher rates than traditional accounts. Many banks and financial institutions offer CDs at rates that are higher than you’ll earn with the average savings or money market account — with digital and online banks offering the highest rates on average.

• Range of CD terms. You can find CD terms of three months to five years or more to fit your financial goals. Rates for six-month CDs can outpace the average bank account, and longer terms offer rates comparable to the best high-yield savings accounts.

Drawbacks of a certificate of a deposit

• Penalty for early withdrawals. If you need to access your money before your CD term expires, you face fees equal to several months of interest — as much as three to six months’ worth, depending on the account and your term.

• Not the highest investment returns. CDs are a safe way to steadily earn interest, but you stand to earn more over the long term through stocks, bonds, mutual funds, annuities or other securities. And by locking your money in a CD, you could miss out if average rates increase.

• You can’t add more money. After your CD locks, you aren’t able to add to your balance until after the CD matures — at which point, you can move your money to another account or roll it over to a new CD.

Dig deeper: High-yield savings account vs. CD: What to know when rates are high

Alternatives to a certificate of deposit

A certificate of deposit isn’t the only low-risk way to earn interest on your savings. Look to these alternatives that offer safe, steady returns — with the flexibility to add to or withdraw your money without penalty.

• High-yield savings account. An HYSA offers a way to quickly grow your savings investment at variable rates of 5% APY or higher with no penalty for withdrawals.

• Money market account. Also called a money market savings account, the rate on an MMA can beat those of traditional savings accounts, with the same flexible access to your money.

• Higher-risk investments. Stocks, index funds and mutual funds purchased through brokerage accounts and investment platforms average higher returns than CDs, though with higher potential losses.

Dig deeper: The best low-risk investments for retirees for safe, steady returns

FAQs: CDs, safety and growing your money

Learn more about how certificates of deposit work when comparing the best for your budget and financial goals. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth for the long term.

How do I know when my CD matures?

Your bank will typically notify you by mail, email or an online account alert when your CD is close to maturing. Be sure your contact information is up to date so you don’t miss important notifications. Also, set your own reminder a few weeks before the maturity date. Learn more in our guide to your options after your CD matures.

How do banks make money with a CD?

Banks charge higher interest rates on money they lend out than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money. Unlike a traditional savings account that allows for flexible movement of your money without penalty, a CD requires you to lock in your deposit over a specified period of time, returning your principal plus interest after the account matures. That lock-in period — and penalties that discourage your early withdrawal — allows a bank to better plan how long it has to make money off your deposit, and it’s typically willing to pay a little more for that reliability.

Is my money safe with an online-only bank like Lending Club or SoFi?

Yes. Online-only banks and digital accounts are as safe as their traditional counterparts. They are either FDIC-insured chartered banks or partner with more recognizable banks to offer deposit accounts that are protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the fintech were to fail or go out of business. Look for terms like “member FDIC,” “FDIC insured” or “NCUA insured” when comparing your options. Learn more about how online banks compare to traditional banks when it comes to rates, fees and management of your money.

What is compound interest?

Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. It means that every dollar you save is working harder and growing faster toward your financial goals.

An account’s APY is the total amount of interest you’ll earn on your deposit over one year, including compound interest, expressed as a percentage. Learn more about how you can turn time into money in our guide to how compound interest works.

What is a jumbo CD?

A jumbo CD is a certificate of deposit that requires a minimum of $100,000 to open the account. Like regular CDs, jumbo CDs come with a fixed interest rate and term. In the past, jumbo CDs offered a way for people and businesses to safely invest money at higher rates than available with a traditional CD.

However, with the Fed holding interest rates at 23-year highs, it’s not always true that jumbo CDs have a higher interest rate than traditional CDs. Learn more about jumbo CDs and why it’s wise to shop around before locking your money into one.

What is a no-penalty CD?

A no-penalty CD — also called a liquid CD — is like a traditional CD through which you lock in a deposit for a guaranteed rate of return over a stated period of time, but with the flexibility of withdrawing your money without penalty before the CD matures. This flexibility comes with trade-offs, however, including lower rates of return than a traditional CD. With rates at historic highs, a high-yield savings account may offer comparable or even higher rates than a no-penalty CD with the same flexibility. Learn more about what to watch for with no-penalty CDs.

What is a CD ladder?

A CD ladder is a savings strategy designed to spread out your money across multiple CDs to leverage high rates without tying up your full investment into one long-term CD. The result of CD laddering is access to a portion of your investment at regular, timed intervals. Learn how to build a CD ladder that helps you lock in today’s highest rates while enjoying rolling returns — before today’s best rates are gone.

What is a brokered CD?

A brokered CD is a certificate of deposit you buy through a brokerage firm, instead of from a bank or credit union. Like traditional CDs, you choose a term length that comes with a set interest rate. But unlike with regular CDs, you can buy them through your investment account either new or “used” from other investors. Learn more about brokered CDs — and what to consider before investing in one.

What’s the difference between saving and investing?

The core difference between saving and investing lies in the accessibility of your money and the risks you take with it. Saving means keeping your money in secure accounts with little to no risk of losing your principal. On the other hand, investing involves buying assets like stocks, bonds or mutual funds that can potentially earn higher returns. Learn more in our guide to saving and investing to find the best approach for your nest egg.

Editor’s note: Annual percentage yields shown are as of Thursday, May 15, 2025, at 7 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

• National Rates and Rate Caps, FDIC. Accessed April 22, 2025.

• Consumer Price Index Summary, U.S. Bureau of Labor and Statistics. Accessed May 14, 2025.

• Producer Price Index News Release summary, U.S. Bureau of Labor and Statistics. Accessed April 14, 2025.

• Employment Situation Summary, U.S. Bureau of Labor and Statistics. Accessed May 5, 2025.