The Federal Reserve‘s anti-inflation measures have benefited CD investors in recent years, but rates have declined since early 2024. Top CD yields dropped from around 6% to under 5% within months due to Fed rate cuts.
With 2025’s uncertain economic outlook, the Fed is unlikely to implement further cuts soon. Despite this uncertainty, many banks still offer CDs with rates above 4% APY across various terms.
While attractive rates are still available, we’re seeing a gradual downward trend that indicates these opportunities may be time-sensitive. Those considering CD investments may want to act quickly to secure high rates before they decline further.
5 best banks for CDs this week
When choosing a CD, your primary focus should be on maximizing the yield for your preferred term length. However, it’s crucial to consider some other factors that can impact your investment decision, such as the minimum deposit requirement and any early withdrawal penalties that will be incurred if you need to access your funds before the term is up.
Fortune, in partnership with banking data specialist Curinos, has identified the top CD options currently on the market. While some competitors may advertise higher rates for certain terms, they often require you to open the accounts in person. Each option on our list can be opened online, nationwide.
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.
Vio Bank: CD rates up to 4.30%
For a solid return on investment that doesn’t require a lengthy commitment, VIO Bank offers some excellent options and a low barrier of entry. You can open an online CD with just $500 and interest is compounded daily, helping to grow your savings quickly. If you need to withdraw your funds early, the early withdrawal penalty varies by term length: On terms of more than 31 days, it’s $25 plus a percentage of the amount withdrawn.
EverBank: CD rates up to 4.00%
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 4.50%
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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Why you might not find the best CD rates at national banks
You might be unfamiliar with some of the institutions offering the highest CD rates, and there's a logical explanation for that: Many large, well-known banks don't prioritize CDs as a core product.
These financial giants often focus on more profitable offerings such as credit cards, mortgages, and various types of loans. As a result, they have little incentive to offer competitive CD rates, as these products contribute very little to their overall revenue streams.
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.
CD earnings are taxable, but are also secured
It's important to note that you’ll pay taxes on any interest earned on your CDs. Financial institutions are required to report this interest on Form 1099-INT if it exceeds $10 in a calendar year. Additionally, any penalties incurred from early withdrawals are also reported on your tax forms, potentially affecting your overall tax liability.
CDs are protected through Federal Deposit Insurance Corporation (FDIC) coverage. This insurance protects your funds up to $250,000 per depositor, per insured bank, for each account ownership category. This FDIC backing provides peace of mind, safeguarding your investment even in the unlikely event of a bank failure.
If you choose to invest in a CD through a credit union, the National Credit Union Administration (NCUA) provides similar protections up to the same $250,000 limit.