Top CD Rates for April 29, 2025: Find the Best 4.00%-4.60% APY Deals

Certificate of deposits (CDs) typically provide the most favorable interest rates for saving. Nevertheless, to secure the greatest annual percentage yield (APY), you must commit to keeping your funds with the bank for a specified duration.

Right now, the best CD rates These are offered through short-term certificates of deposit (CDs). According to the Federal Deposit Insurance Corporation (FDIC), the average interest rate for a one-year CD stands at 1.77%. Nonetheless,DepositAccounts.com notes that the typical yield for premium high-interest CDs reaches about 4.80%. Additionally, some institutions provide attractive rates on six-month CDs, along with special promotion CDs featuring elevated returns.

Top CD rates today

The highest certificate of deposit (CD) return from a nationwide bank is offered by My eBanc, providing a 4.50% annual percentage yield (APY) for a one-year CD with a minimum opening balance of $5,000. At the local level, LINKBANK offers the most competitive CD interest rate at 4.50% APY but over a period of ten months; however, this requires only a $500 initial investment to qualify for the stated APY.

If your priority is getting the highest return, regardless of your location, check out the best CD rates currently available.

Current top CD rates based on term

The highest certificate of deposit (CD) rates vary depending on your location, the specific financial institution you choose, and various other elements. Below are some of the most competitive CD interest rates available across different time periods.

• Brilliant Bank: 4.40% for a three-month certificate of deposit with a $1,000 minimum deposit
• Security State Bank (KS): 4.60% for a six-month certificate of deposit with a minimum deposit of $25,000
• Abound Credit Union: 4.45% for a 10-month CD with a $500 minimum deposit
• Library of Congress Federal Credit Union: 4.42% for a 12-month CD with a $500 minimum deposit
• Marcus by Goldman Sachs: 4.40% for a 14-month certificate of deposit with a minimum requirement of $500 to achieve this annual percentage yield (APY).
• EagleBank: 4.40% for an 18-month certificate of deposit with a $1,000 minimum deposit
• Lafayette Federal Credit Union: 4.28% for a 24-month Certificate of Deposit with a $500 minimum deposit
• Lafayette Federal Credit Union: 4.28% for a 36-month CD with a $500 minimum deposit
• Lafayette Federal Credit Union: 4.28% for a 48-month CD with a $500 minimum deposit
• Lafayette Federal Credit Union: 4.28% for a 60-month CD with a $500 minimum deposit

Past CD rates and Federal Reserve rate patterns

Historically, long-term CDs offer higher returns compared to short-term certificates of deposit (CDs). Nevertheless, lately, six-month CDs and 12-month CDs have experienced greater average outputs.

Elements affecting present CD interest rates

A major factor affecting present CD rates is the federal funds rate. When the Federal Reserve started lowering this key interest rate towards the latter part of 2024, CD rates subsequently dropped as well. Nonetheless, In March 2025, the choice was made to maintain the Federal Reserve interest rates unchanged. is expected to lead to fairly steady CD interest rates for the time being.

A key determinant of certificate of deposit (CD) rates is the strategic objectives of banks or credit unions. These institutions juggle the returns they offer to savers against the profits derived from lending money to borrowers. Say, for instance, a bank applies an annual percentage rate (APR) of 9% on loans; hence, the return paid out to depositors must remain sufficiently modest so as not to erode profitability. Should a banking entity provide a yield of 4.65% over a half-year period on CDs, this strategy allows them to lure more savers without compromising their gains from extending credits to those seeking loans.

The duration of a term is also significant. Should a financial institution anticipate an upcoming reduction in interest rates by the Federal Reserve, it may offer elevated yields on brief certificates of deposit (CDs) to draw more clients. Upon maturity, these depositors would then be compelled to reinvest their money at reduced rates once the federal funds rate decreases.

Conversely, in a setting where interest rates are anticipated to increase gradually, a banking entity could provide a more substantial return on long-term certificates of deposit (CDs) to persuade savers to commit their funds for extended durations—despite potentially missing out on higher interest rates later on.

How to select the appropriate certificate of deposit for your financial objectives

When comparing CD rates, keep in mind your financial objectives and how you intend to utilize your funds. Consider these factors:

• By when do you require the funds? Since withdrawing money from CDs incurs penalties, think about when you'll need your funds. If you're saving up for something just a few months down the line, opting for a short-term CD would be sensible. Conversely, if securing your return and not needing immediate access to cash is what matters most to you, then choosing a long-term CD may prove to be beneficial.
• To what extent do you intend to invest in a certificate of deposit strategy? In an entire investment portfolio, cash typically generates the least amount of returns. Incorporating certificates of deposit (CDs) can boost the earnings from your cash holdings; however, this comes with reduced accessibility to those funds. Higher interest rates are often associated with jumbo CDs, though they require a substantial initial deposit. Determine how much money you're willing to allocate to CDs and think about employing different strategies accordingly. CD laddering strategy If you desire easier access to some of your funds and are seeking certificates of deposit (CDs) with lower initial deposits.
• What might upcoming CD trends resemble? When comparing current CD interest rates, review predictions from experts about future yield movements. Should you believe these returns may drop, consider securing a longer-term CD at a higher rate. Conversely, if you anticipate an increase in rates, opting for a shorter-term CD allows your investment to mature before renewing at possibly improved conditions. Building a CD ladder might also assist in maintaining liquidity alongside fluctuating yields.

Purchasing high-quality items simplified.

Subscribe to our Buy Side newsletter from The Wall Street Journal

Share this post