Certificates of deposit (CDs) often offer the best rates for savings. However, to get the highest annual percentage yield (APY), you need to agree to keep your money with the financial institution for a set time period.
Right now, the best rates are on short-term CDs. The Federal Deposit Insurance Corporation (FDIC) reports that the average rate on a 12-month CD is 1.76%. However, the average for the top high-yield CDs is 4.88% There are also six-month and 48-month CDs with competitive rates, depending on the institution, as well as promotional CDs with higher rates
The best CD yield available nationwide is USAlliance Financial with a 5.05% APY on an 18-month CD with a $500 minimum required to earn the APY. The best CD rate from a local financial institution is Toyota Financial Savings Bank, offering a 5.25% APY on a 60-month CD with a $1 minimum requirement to earn the APY.
If you’re looking for the highest yield, no matter where you live, review the top CD rates today.
Top CD rates today
Today’s best CD rates by term
The top CD rates change based on location, financial institution and other factors. Here are some of the best CD interest rates for different maturities:
- Dow Credit Union:4.35% three-month CD ($500 minimum to earn the APY)
- Empower Federal Credit Union: 5.00% six-month CD ($500 minimum deposit to earn the APY)
- Capital Credit Union: 5.00% 10-month CD ($5,000 minimum to earn the APY)
- USAlliance Financial: 5.00% 12-month CD ($500 minimum to earn the APY)
- First Central Savings Bank:4.35% 14-month CD ($500 minimum to earn the APY)
- USAlliance Financial: 5.05% 18-month CD ($500 minimum to earn the APY)
- Tower Federal Credit Union:5.10% 24-month CD ($500 minimum deposit required to earn the APY)
- Toyota Financial Savings Bank:5.10% 36-month CD ($1 minimum to earn the APY)
- Toyota Financial Savings Bank: 5.20% 48-month CD ($1 minimum to earn the APY)
- Toyota Financial Savings Bank: 5.25% 60-month CD ($1 minimum to earn the APY)
The Buy Side team reviewed fixed-rate CDs using DepositAccounts.com, which tracks interest rates at hundreds of thousands of banks and credit unions nationwide. We also researched and verified the rates and requirements based on the information available from financial institutions’ websites. For this list, we focused on credit unions with less stringent eligibility requirements.
Historic CD rates and Fed rate trends
Historically, long-term CDs pay higher yields than short-term CDs. However, recently, six-month CDs and 12-month CDs have had higher average yields.
Factors influencing current CD rates
One of the biggest factors influencing current CD rates is the federal-funds rate. Federal Reserve policymakers lowered the benchmark rate three times in 2025, and CD rates fell in response. Fed officials adopted a more cautious approach in 2026, holding rates steady at their first five meetings of the year until a surge in energy prices resulting from the Iran war and an AI-investment boom led policymakers to raise the federal-funds rate a quarter point in September. At their most recent meeting in October, officials voted to hold rates steady, but investors expect them to raise rates once more before the end of the year.
Another factor that influences CD rates is the business goals of a bank or credit union. A financial institution balances the yield it pays to depositors with the amount of interest it earns from borrowers. For example, if a bank charges its customers 9% APR on a loan, the yield it pays depositors needs to be low enough that there’s a profitable difference. If a financial institution pays a yield of 4.65% on a six-month CD, it can attract depositors with a higher yield while still earning a profit on the funds it loans to borrowers.
Term length matters as well. If the Federal Reserve is expected to cut interest rates in the near future, a financial institution might pay higher yields on short-term CDs to attract customers. Then, when the CD matures, it will offer depositors a lower rate when they renew.
On the other hand, in an environment where rates might be expected to rise over time, a financial institution might offer a higher yield on long-term CDs to encourage depositors to agree to keep their money in place for a longer period—even if they miss out on potential interest rate hikes.
How to choose the right CD for your financial goals
As you compare CD rates, consider your financial goals and what you hope to achieve with your money. Here are some considerations:
- When do you need the money?Because CDs charge penalties if you withdraw the money early, consider when you want access to your funds. If you’re saving for a goal that’s a few months away, a short-term CD might make sense. On the other hand, if you want to guarantee your yield and don’t need access to the money immediately, a long-term CD could be a good choice.
- How much do you plan to commit to a CD strategy? As part of an overall portfolio, cash is likely to earn the lowest return. Including a CD strategy can help you increase yield on the cash portion of your portfolio, but it also means less liquidity for your cash. Some of the best rates are on jumbo CDs, but you need to commit a larger minimum deposit to qualify. Figure out how much you can put into CDs and consider using a CD laddering strategy if you want more frequent access to a portion of your money and are looking for CDs with smaller minimum requirements.
- What will future CD trends look like? As you compare today’s CD rates, read up on where experts predict yields will go next. If you think they’re likely to fall, you might want to lock in a higher rate on a medium- to long-term CD. On the other hand, if you think they will rise, a short-term CD could mature in time for you to take advantage of rising rates. CD laddering can potentially help you balance access with changing yields.
Miranda Marquit was a staff senior personal finance editor for Buy Side.
