As of August 25, 2026, some of the highest rates on certificates of deposit are reaching up to 4.50% APY (annual percentage yield).
With the Federal Reserve cutting its benchmark federal funds rate three times in 2025, many banks have subsequently lowered their interest rates on CDs and savings accounts. Therefore, securing CDs at current rates—while still appealing—might be a smart move financially. At the moment, Popular Direct offers the most lucrative rates for 3-year, 4-year, and 5-year CDs.
Here’s a curated selection of CDs with durations ranging from 1 month to 10 years, gathered with the assistance of Curinos, a notable financial data provider. This should help you in identifying the best CD for your needs.
Best CD Rates Today
Below are the current CD rates according to the Curinos report:
Highest CD Rates by Term
What the Partnership Between Fortune and Curinos Means for Your CD Strategy
To compile this list, Fortune partners with Curinos, which has substantial knowledge in financial data and market analytics. Every workday, Curinos provides us with the most recent CD rates from various financial institutions. We analyze this data to present you with the CDs that offer the highest returns across a range of durations.
Pro Tip
If you’re in search of the best CD that suits your investment objectives, consider rates from major banks like:
–Wells Fargo
–Capital One
–Chase
–Bank of America
–Discover Bank
–Northern Bank Direct
–Ally Bank
–Newtek Bank
–Popular Direct
–Citibank
–Sallie Mae Bank
Potential Interest Earnings with High-APY CDs
The amount of interest you can earn during your CD’s term depends on several factors: your initial balance, the chosen duration, the APY available, and how frequently the interest compounds. Below are a few hypothetical scenarios demonstrating potential earnings, emphasizing the significance of hunting for competitive CD rates.
Example: Earning $1,000+ vs. $300+
The following examples consider a starting deposit of $5,000, with interest compounded monthly.
From the data shown, it’s clear that comparing CD rates among different banks and credit unions can result in earning hundreds of dollars more in interest, rather than opting for a lower-APY CD from your local bank where you might usually keep your checking account.
History of CD Rates
CD rates were once at double-digit levels in the 1980s, but have since become quite modest. As of 2019, five-year CD rates hovered just above 3.00%.
In the early 2020s, rates surpassed 5.00% while the economy rebounded from the Covid-19 crisis. Today, it’s not unusual to find CD rates ranging between 3.00% and 4.00%.
FDIC data shows how CD rates have fluctuated throughout 2025. Generally, our list features rates that are typically higher than the average yield for any given term.
Federal Reserve’s Influence on Your CD Options
The federal funds rate currently stands between 3.50% and 3.75%. The Federal Open Market Committee (FOMC) meets eight times a year, with the next session on September 15-16.
Investors know that CD yields usually align with changes in Federal Reserve policy, particularly the fed funds rate, which indicates what banks charge each other for overnight loans.
In simple terms, a reduction in the federal funds rate aims to lower borrowing costs, while increases have the opposite effect. For instance, during the Covid-19 pandemic, the Fed lowered this rate to nearly zero to stave off a recession. Later, as inflation emerged as a significant concern, the Fed repeatedly raised rates.
Selecting the Best CD Account
Your primary consideration should be how long you can afford to leave your money untouched, as early withdrawals from CDs typically incur penalties. Interestingly, some shorter-term CDs like six-month options often offer higher APYs than longer-term accounts such as 10-year CDs. However, the latter provide better security against potential rate cuts if the Fed decides to lower its benchmark rate in the future.
Additionally, keep in mind that online banks usually provide better rates than traditional banks with physical branches, largely due to the lower overhead costs of online operations, enabling them to offer more competitive interest rates on deposit products.
Here are some essential factors to weigh when considering CDs:
- Term Length: Ensure it aligns with your financial objectives.
- APY: While longer terms generally yield better returns, current market conditions may alter that trend.
- Deposit Requirements: Confirm that you can meet the minimum balance needed to open the account.
- Penalties: Understand what penalties apply for early withdrawal if you require your funds before maturity.
- Account Protection: Make sure the bank or credit union offers FDIC or NCUA insurance to protect your deposits.
CD vs. High-Yield Savings Account
If you’re okay with the variability of savings account rates—which can change at your institution’s discretion—a high-yield savings account might be preferable for those who need quicker access to their money. For instance, for an emergency fund, a HYSA usually makes more sense.
Furthermore, competitive savings accounts might match or even exceed current CD rates, as many high-yield savings accounts are offering APYs between 4.00% and 5.00% at this time.
In general, online financial institutions tend to provide the most appealing savings rates, capitalizing on the same cost benefits that enable better CD yields compared to conventional banks.
