Discover how much profit you can secure by locking in a favorable CD rate today. Following three cuts to the federal funds rate by the Federal Reserve in 2024 and its initial rate reduction for 2025, now may be your final opportunity to secure a competitive CD rate before potential further declines in rates. Since CD rates can greatly differ among financial institutions, it’s essential to shop for the best rate available.
Below is an overview of current CD rates and some of the top offers available.
In general, the most attractive CD rates are typically found in shorter terms of around one year or less. Specifically, online banks and credit unions are leading the way with the best offers.
As of October 11, 2025, the most competitive CD rate stands at 4.1% APY, available through Marcus by Goldman Sachs for their 14-month CD.
Here’s a snapshot of some of the best CD rates currently available:
The interest you can earn from a CD is determined by the annual percentage rate (APY). This reflects your total earnings after one year, factoring in the base interest rate and the frequency of interest compounding (typically daily or monthly for CDs).
For example, if you invest $1,000 in a one-year CD with an APY of 1.70% and interest compounds monthly, your balance will grow to $1,017.13 at the end of the year—comprising your original $1,000 deposit and $17.13 in interest.
If you opted for a one-year CD with a 4% APY instead, your balance at the same point would rise to $1,040.74, which includes $40.74 in interest earned.
The larger your deposit in a CD, the more significant your potential earnings. In the same scenario with a one-year CD at 4% APY, if you deposited $10,000, your final balance when the CD matures would be $10,407.42, yielding $407.42 in interest.
Read more: What constitutes a good CD rate?
While the interest rate is often the primary concern when selecting a CD, it’s not the only element to take into account. There are various types of CDs that provide different advantages, though you might need to compromise on the interest rate for added flexibility. Here’s a look at several common types of CDs beyond standard offerings:
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Bump-up CD: This type allows you to request a higher interest rate during the CD’s term if your bank raises rates. Typically, you can only upgrade your rate once.
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No-penalty CD: Also referred to as a liquid CD, this type allows you to withdraw your funds before the maturity date without incurring a penalty.
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Jumbo CD: These CDs necessitate a greater minimum deposit (usually $100,000 or more) and often present higher interest rates. However, in the current CD rate landscape, the disparity between traditional and jumbo CD rates may be minimal.
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Brokered CD: As indicated, these CDs are acquired through a brokerage instead of directly through a bank. Brokered CDs may offer higher rates or more adaptable terms, but they also carry more risk and might not be protected by FDIC insurance.
