The Federal Reserve’s response to pandemic-induced inflation benefited CD investors over the last three years. However, rates have been on the decline since late 2024, as Fed rate cuts drove the top CD rates from around 6% to less than 5% within months.

The murky outlook for inflation and the U.S. economy suggests that the Fed won’t deliver any more rate cuts soon. But any rays of sunshine could reignite policy tightening. Plenty of banks are still offering certificates of various term lengths with rates above 4% APY, but a gradual weekly decline is evident.

5 best banks for CDs this week

When selecting a CD you should prioritize getting the optimal yield for your desired term length, but don’t overlook other crucial factors. Consider minimum deposit requirements and scrutinize the fine print—some institutions may require opening an additional savings or checking account to access their top rates.

Fortune, in collaboration with banking data firm Curinos, has identified standout CD options currently available. While some competitors may advertise higher rates for specific terms, these often come with substantial minimum deposits or geographical restrictions.

The following institutions offer above-average CD rates, reasonable minimum opening deposits, and online accessibility—no in-person appointments necessary.

Discover Bank: CD rates up to 4.15%

A familiar name tops our list this week. Discover Bank offers a wide variety of CD terms and is a great fit for those who already bank with this well-known institution. While only a few of the term lengths offer yields over 4.00% APY, there’s no minimum balance requirement. This makes it a great place for new savers with smaller balances to get started.

MYSB Direct: CD rates up to 4.25%

If your goal is to set up a CD ladder—multiple certificates with staggered term lengths—MYSB Direct would be a good choice. All nine of the term lengths we’re tracking yield above-average rates, and the minimum opening deposit is a very reasonable $500. That low threshold makes it easy to open multiple CDs and lock in some long-term rates while they’re still high.

EverBank: CD rates up to 3.90%

Also carrying a vast array of above-average rates, EverBank has a steeper minimum opening deposit of $1,000. But the bank features an unusually gracious early withdrawal penalty: You’ll only lose 25% of your accrued interest if you have to pull funds out before the end of the term. This may be attractive to customers who aren’t confident they can lock up their funds for the entire time period.

Bread Savings: CD rates up to 4.00%%

Offering consistently high rates, the only thing that might deter customers from getting a CD at Bread Savings is the minimum opening deposit of $1,500. Still, the rates are excellent, and if you can afford to meet this requirement you can build a strong portfolio of savings in minutes with its easy online application.

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Ally Bank: CD rates up to 4.00%

With no minimum deposit requirement, Ally Bank’s CDs offer some of the most flexible options for new savers. You’ll earn above-average rates on every term length it offers, though note that there is no 2-year option, unlike the other options on our list. Ally also offers an 11-month no-penalty CD, which has a lower yield but again offers flexibility if you’re not confident about locking up your funds for an extended period of time. 

Why you might not find the best CD rates at national banks

You may be surprised not to recognize some of the banks above, but there’s a simple reason why: For many large banks, CDs simply aren’t a profitable product. These institutions don’t offer high rates of return because they specialize in other types of banking products, selling things like credit cards and loans that earn them far more. 

Smaller banks, on the other hand, generally have fewer product offerings. For them, CDs are a great way to build their capital, and therefore, they offer higher yields to attract more customers. Take a look at the table below to see how top rates from some of the biggest banks around compare to those on our list.

A note on CD income and your taxes

Keep in mind that interest earned from CDs is taxable and must be reported on Form 1099-INT if it exceeds $10 annually. Early withdrawals from CDs incur penalties, which are also reported on your tax form.

CDs are insured by the Federal Deposit Insurance Corp. (FDIC), up to $250,000 per customer account, per institution. FDIC backing secures your funds in the unlikely event of a bank failure. If you opt for a CD from a credit union, verify that it is insured by the National Credit Union Administration (NCUA), which insures deposit accounts at credit unions.