CD Rates Today: July 28, 2025 - Take Home Up To 4.94%
Today's highest CD rate is 4.94% for a jumbo 6-month CD.
CD rates from online banks are commonly twice as high as the national average rates.
CD ladders let you leverage high rates without locking up all of your money long-term.
The best interest rates on CDs (certificates of deposit) currently top out at 4.94%, depending on the term. Here's a look at how CD rates are trending, along with an overview of the best rates for various terms.
A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you'll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can't touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year's worth of interest if you withdraw funds from a five-year CD before it reaches maturity.
Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.29%, but the highest rate is 4.62%. 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 1.76%, about the same as last week.
For a one-year CD, one of the most popular CD terms, the highest interest rate available is 4.84%. Last week, the rate was lower at 4.64%.
The average APY, or annual percentage yield, on that CD now stands at 1.84%, unchanged from a week ago.
If you can hold out for two years, 2-year 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 1.65%, flat to last week's average.
Today, the highest rate on a three-year CD stands at 4.26%, so you'll want to shop around for that rate or something near it. The average APY is 1.57%.
The highest rate available today for a five-year CD is 4.26%. The average APY is 1.58%, 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 1.81%.
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?
CD rates are rarely the same between any two banks, so you should comparison shop when looking for a new account. You may decide to stick with your current bank because it's convenient or join a new bank to take advantage of higher rates.
To find the right CD, look at the specific term you're interested in with a few different banks.
Traditional, brick-and-mortar banks tend to offer lower CD rates, in general, than online banks without any branches. For example:
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.
If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts . You will have to do without the money for as long as the term lasts; otherwise you'll owe an early withdrawal penalty.
Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle?
The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going "poof" over the course of a year. Not a happy thought, is it?
CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don't need immediately, while stocks provide solid long-term returns. You don't want to risk cash you're depending on.
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.
CD rates generally fluctuate the most following the Federal Reserve's decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets.
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. Frequently Asked Questions (FAQs)
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.
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Black swimmers teach others amid history of aquatic segregation In Gaza, hunger forces impossible choices as Hamas releases propaganda video of hostage Open: This is "Face the Nation with Margaret Brennan," Aug. 3. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
