You can earn up to 4.18% APY. Check out the best CD rates on Dec. 9, 2025

The best CD rates return up to 4.18% annual percentage yield. That means you could lock in high rates for years if you funded a certificate right now, depending on the term that’s best suited to your financial goals. Markets anticipate the possibility of one more more Fed rate cut at the meeting kicking off on December 9, 2025, so there’s no time to waste.

The best CD rates on December 9, 2025: Earn up to 4.18%

The highest CD rate of 4.18% is offered by Citibank on its three-month CD. But, be aware the rates Citi offers can vary based on your location.

Fortune monitors the top rates offered by leading U.S. financial institutions to help readers obtain the best possible return on their CD investments. Here are the best CD rates available on the market:

Pro tip

Looking for the best CD to fit your investment needs? See rates from top institutions:
–Wells Fargo
–Capital One
–Chase
–Bank of America
–Discover Bank
–Northern Bank Direct
–Ally Bank
–Newtek Bank
–Popular Direct
–Citibank
–Sallie Mae Bank

Compare CD rates at top national banks

If you’re unfamiliar with many of the bank names mentioned above, there’s a straightforward reason. CDs typically don’t generate substantial income for major financial institutions on their own.

Large, national banks like Chase, PNC, and U.S. Bank focus on attracting customers through more profitable products, such as loans and credit cards, rather than CDs. As a result, the interest rates offered on CDs at these banks are often much lower than those available at smaller regional banks or online institutions. Additionally, to secure a good rate at these larger banks, you may be required to open other deposit accounts or deposit much higher minimums.

CD rates news 2025

Investors need to recognize that average CD rates rise and fall in close alignment with Federal Reserve monetary policy changes, specifically fluctuations in the fed funds rate. It’s crucial for those investing in CDs to monitor the central bank’s policy shifts to anticipate potential rate changes.

Last year, the Fed cut the fed funds rate three times, leaving it at 4.25%-4.50% as of December 2024. High inflation from the post-pandemic period was cooling off, and the central bank tapered rates to help the economy stay on track. CD yields fell from two-decade highs as the Fed reduced rates.

Those 20-year highs in CD yields were themselves a result of the Fed’s rate hike campaign of 2022 and 2023. Inflation gains were hotter than at any time since the early 1980s, thanks to the economic disruptions of the pandemic. Between March 2022 and July 2023, the Fed raised interest rates 11 times, from zero to 5.25%-5.50%, to help tamp down inflation.

After holding pat on rate cuts for most of 2025, the Fed finally cut the federal funds rate to 4.00%-4.25% at its Sept. 16-17 meeting, then to 3.75%-4.00% when it met Oct. 28-29.

The Federal Open Market Committee (FOMC) is holding its last meeting this year now, Dec. 9-10.

Keep in mind that CD rates aren’t far from their recent peaks, and you still have the chance to lock in competitive rates on both short-term and long-term CDs. By contributing a larger lump sum to your CD investment, you can achieve considerable interest earnings.

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Historical CD rates

In the early 1980s, CD rates soared into double digits, starkly contrasting rates in 2025. By 2019, however, the APY for a five-year CD was just above 3.00%.

Throughout the early 2020s, top rates generally stayed below 1.00% APY. Recently, we saw a period of rising rates, with the best offerings exceeding 5.00% APY for 1-year CDs. These are beginning to fall slightly, but are still much higher than pre-pandemic times.

How to get a good CD rate

Determining a “good” CD rate depends on balancing the highest rate with your ability to keep funds locked for the term. For example, a 5.00% APY CD over five years might not be ideal if you need liquidity sooner or if rates rise, leaving you with a lower return. Generally, rates above the national average are worthwhile. Compare rates across banks for your desired term to find the best option.

Key factors to evaluate when comparing CDs include:

• Term length: Ensure it matches your savings goals and timeline.
• APY: Higher rates are usually offered for longer terms.
• Penalties: Understand the costs associated with early withdrawals.
• Minimum deposit: Ensure you meet the required minimum balance.
• Deposit insurance: Verify Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) coverage.

Additionally, online banks typically offer higher interest rates—but check for any minimum balance requirements and associated fees. Opting for a bank rather than a broker might help avoid unnecessary fees.

Look into offerings from online banks

Online banks and financial technology companies (fintechs) typically offer better rates than national banks. Large financial institutions generate revenue primarily through interest on loans, fees, and investments in securities.

Alternatively, smaller banks and online fintech companies attract new customers by offering competitive APYs on deposit accounts. Additionally, online banks usually have lower overhead costs, enabling them to provide better rates to their clients.

Set up a CD ladder

CD ladders are ideal for savers reluctant to lock in their money for long periods of time. By splitting savings across CDs with varying maturities, you can enjoy both short-term access and higher long-term rates.

For example, you could invest $3,000 in three staggered CDs (1-year, 2-year, and 3-year). As each CD matures, reinvest the money into a new 3-year CD. This strategy provides annual access to your money plus the interest earned.

Types of CDs you should know about

Different types of CDs serve various needs:

• Brokered CDs are purchased and sold through brokerage accounts rather than directly from banks or credit unions. Brokered CDs typically offer higher APYs than traditional CDs because they are issued by banks and then sold to brokerages.
• Callable CDs include a call feature that allows the issuing institution to terminate the CD before its maturity date. If this feature is exercised, investors receive their principal and any accrued interest up to the call date.
• Bump-up CDs allow you to request a higher APY if interest rates rise after you’ve opened the account. You can usually adjust the rate once or twice during the CD’s term.
• No-penalty CDs do not impose penalties for early withdrawals before maturity. This type is less common and may offer lower APYs than traditional CDs.
• Jumbo CDs require a minimum initial deposit, often starting at $100,000 or more. They generally offer higher APYs than standard CDs.
• Variable-rate CDs have an APY that changes in response to prevailing interest rates. These CDs carry more risk than traditional CDs because decreasing interest rates before maturity can lead to a lower yield.

Series on daily CD rates created by former Fortune editor Cassie Bottorff. This edition has been updated by Editor, Evergreen Content Glen Luke Flanagan.