CD Rates Today: May 19, 2025 - Take Home Up To 5.02%

Forbes

19-05-2025

The best interest rates on CDs—certificates of deposit—pay up to 5.02% today, based on certificate term lengths. Here's an overview of how CD rates are changing, followed by a guide to the current top CD rates across different terms.
A CD is a kind of savings account with a fixed interest rate for a given term. You can access your principal and interest payments once the CD term expires; if you withdraw money before that time, you'll incur an early withdrawal penalty. Traditionally, the longer a CD term, the higher the yield, but that dynamic hasn't held in recent years. Make sure you select a CD that matches up with when you'll need the money.
Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.3%, but the highest rate is 4.67%. The average rate is unchanged from a week ago.
If you're interested in a short-term CD with high yields, consider a six-month CD. The best rate today is 4.94%. The current average APR for a six-month CD is 1.78%, about the same as last week.
The highest interest rate currently available on a 12-month CD—one of the most popular CD terms—is 5.02%. If you land a rate in that vicinity, you've found a good deal. That rate hasn't changed much since last week.
The average APY, or annual percentage yield, on a one-year CD is now 1.83%, unchanged from a week ago.
If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. That's the same as this time last week.
The average APY for the CD is 1.66%, flat to last week's average.
Today, the highest rate on a three-year CD stands at 4.27%, so you'll want to shop around for that rate or something near it. The average rate APY is 1.58%.
The highest rate available today for a five-year CD is 4.26%. The average APY is 1.59%, similar to last week.
The longer the term, the higher the early withdrawal penalty. It's not unusual to lose one full year's worth of interest or more if you break open a five-year CD early. Be absolutely certain you understand the penalty before you make your investment.
The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.82%.
Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there's no universally agreed-upon definition regarding what qualifies as a "jumbo" CD. Some banks and credit unions slap the label "jumbo" on CDs you can open with $50,000, $25,000 or even less.
Related: CD Interest Rates Forecast: How Good Will They Get?
When looking for the best CD rates, cast a wide net.
Study the offerings from traditional banks, credit unions and digital firms. You may be surprised that a credit union you've never heard of provides the highest yields.
For example, PenFed Credit Union's CD rates currently range from 2.90% to 3.40% while U.S. Bank CD rates currently range from 0.05% to 0.25%.
Other top CD rates by banks include:
You "purchase" a CD from a financial institution by opening an account with a lump-sum deposit, which is your principal. Many CDs and share certificates (accounts similar to bank CDs but offered by credit unions) have minimum deposits you must meet, which typically range from a few hundred to several thousand dollars.
Once you deposit your principal, the clock starts on your timed investment, and you begin earning interest. The bank or credit union will provide you with regular statements showing how much you're earning. You may accrue interest daily, monthly or quarterly.
Try not to tap your CD before the term ends. Early withdrawal penalties can be so severe that they negate your interest and then start eating into your principal.
CDs typically pay higher interest than other savings vehicles, even the best high-yield savings accounts and money market accounts. And while they may not offer the kind of enviable returns that are possible with stocks, CDs beat the more attention-getting investments in one regard: They're one of the safest places to put your money.
Investors lost millions in the 2022 crypto crash, and putting your money into the stock market, real estate or gold and other commodities can be risky, too. But when you buy a certificate of deposit or credit union share certificate from a federally insured financial institution, you can sleep easily with the knowledge that your investment is protected.
The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit.
Traditional brick-and-mortar banks have far greater operating expenses than banks that only exist online. That's why online banks are usually able to offer more attractive APYs on CDs – they have lower overhead costs, so they can afford to pay higher interest rates to customers.
Related: CD Interest Rates Forecast: How Good Will They Get?
Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.
You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD.
Follow this plan and you'll have one better-yielding five-year CD maturing each year. If you're ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD.
Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate.
CDs usually come with zero fees, meaning your money won't be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts.
You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won't need access to your cash in the meantime.