Best Banks for Highest Interest CD Rates in 2025
Maximize your savings with the highest CD rates available from top banks in 2025.
Certificates of deposit (CDs) remain one of the most reliable ways to grow your savings with predictable, guaranteed returns. As of November 2025, the landscape of CD rates continues to evolve in response to Federal Reserve monetary policy decisions and competitive pressures among financial institutions. This comprehensive guide examines the best banks offering the highest CD rates, helping you make informed decisions about where to place your money for optimal returns.
Current CD Rate Environment
The CD rate market in November 2025 reflects a period of moderation following significant rate cuts by the Federal Reserve. The Fed cut interest rates in September and October 2025, adjusting the federal funds rate to 3.75%-4.00%. Currently, the best CD rates offer up to 4.30% annual percentage yield (APY), with most competitive offerings ranging between 3.50% and 4.00% APY across various terms.
The mid-4% rates that were more common earlier in the year are steadily becoming scarcer as rates stabilize. However, investors still have opportunities to lock in attractive returns, particularly on shorter-term CD products. The highest CD rate currently available is 4.30% APY offered by NBKC Bank on its 7-month CD.
Top-Performing Banks by CD Term Length
Different banks excel at different CD term lengths. Understanding which institutions offer the best rates for your specific timeline is crucial for maximizing your returns.
Short-Term CDs (3-6 Months)
Short-term CDs continue to offer some of the most attractive rates available in the current market. For investors seeking liquidity within a few months, these options provide competitive yields without locking capital away for extended periods.
OMB Bank leads the three-month CD market with 4.11% APY. For six-month CDs, Climate First Bank offers 4.27% APY, while Newtek Bank provides 4.20% APY. These short-term options are ideal for investors who anticipate needing access to their funds within the year or who want to reassess their rate options frequently.
Medium-Term CDs (1-2 Years)
The one-year CD market remains competitive, with Alliant Credit Union offering 4.10% APY. For 14-month CDs, several institutions provide rates around 4.10% APY with minimum deposits of $500. Two-year CDs typically range from 3.50% to 3.95% APY depending on the institution.
The average one-year CD across all banks stands at 1.93% APY as of late November 2025, but the most competitive banks are offering significantly higher rates up to 4.25% APY. This substantial gap underscores the importance of shopping around rather than accepting default rates from major national banks.
Long-Term CDs (3+ Years)
Long-term CDs offer the benefit of rate certainty for years, protecting your savings from potential future rate cuts. However, they typically offer lower yields than shorter-term products. Sallie Mae Bank leads the three-year market at 3.90% APY, matched by Marcus by Goldman Sachs. For five-year CDs, Sallie Mae Bank offers 4.00% APY, representing one of the better long-term options available.
Best Banks for Certificate of Deposits
NBKC Bank
NBKC Bank currently offers the market’s highest CD rate at 4.30% APY on its 7-month CD. This Kansas City-based online bank has established itself as a competitive player in the CD market, particularly for savers seeking unconventional term lengths that bridge the gap between standard offerings.
Climate First Bank
Climate First Bank distinguishes itself with a 4.27% APY on its 6-month no-penalty CD. The no-penalty feature provides additional flexibility, allowing depositors to access their funds early without forfeiting earned interest—a significant advantage for those uncertain about their financial needs.
Bread Savings
Bread Savings offers competitive rates across multiple CD terms, with various options ranging from shorter to longer-term products. Their rate structure provides flexibility for different investment timelines and deposit amounts.
Alliant Credit Union
As a credit union, Alliant provides member-focused rates with its 4.10% APY one-year CD. Credit unions often offer competitive rates to their membership base and may provide additional benefits for account holders.
Sallie Mae Bank
Sallie Mae Bank maintains strong rates on both medium and long-term CDs, offering 3.90% APY on three-year CDs and 4.00% APY on five-year CDs. This consistency across term lengths makes Sallie Mae a reliable choice for savers planning longer-term financial strategies.
Marcus by Goldman Sachs
Marcus by Goldman Sachs remains a trusted name in high-yield savings and CDs, offering 3.90% APY on three-year CDs. Known for customer service and straightforward terms, Marcus continues to be a popular choice among individual savers.
LimelightBank
LimelightBank, an online bank based in Utah, offers APYs ranging from 3.70% to 4.20% with a $1,000 minimum deposit. The bank provides terms from six months to three years, making it suitable for short to medium-term investment horizons.
OMB Bank
OMB Bank leads the three-month CD market with 4.11% APY, making it an excellent choice for investors seeking very short-term, highly liquid CD options.
CD Rate Comparison Table
| CD Term | Top Institution | APY Rate | Minimum Deposit |
|---|---|---|---|
| 3 months | OMB Bank | 4.11% | Varies |
| 6 months | Climate First Bank | 4.27% | Varies |
| 1 year | Alliant Credit Union | 4.10% | Varies |
| 3 years | Sallie Mae / Marcus | 3.90% | Varies |
| 5 years | Sallie Mae Bank | 4.00% | Varies |
Recent CD Rate Changes and Trends
The CD market has experienced significant movement in recent months. Several major institutions have adjusted their rates in response to Federal Reserve policy changes and competitive pressures.
In October 2025, First Internet Bank lowered all eight of its CD rates by at least 10 basis points, with its five-year CD declining from 3.56% to 3.45%. LendingClub similarly reduced its eight-month CD from 4.25% to 4.10%. Earlier in September, Popular Direct lowered all eight of its CD rates by 10 basis points, exemplified by its six-month CD dropping from 4.00% to 3.90%.
Marcus by Goldman Sachs lowered six of its CD rates in mid-September, including its six-month CD from 4.40% to 4.25%. First Internet Bank also implemented substantial cuts of at least 20 basis points on multiple products during September.
These trends indicate that while attractive rates remain available, the window for locking in the highest yields is narrowing. Savers should act promptly if they find competitive rates that meet their financial objectives.
Factors to Consider When Choosing a CD
Interest Rate and APY
The annual percentage yield represents the total return you’ll earn on your CD investment. Comparing APYs across institutions is essential, but remember that even small differences compound significantly over time, particularly on larger deposits.
CD Term Length
Your financial timeline should dictate your CD term selection. Shorter terms offer greater flexibility but typically lower rates, while longer terms lock in higher rates but restrict access to your funds. Consider your anticipated need for the capital when selecting a term.
Minimum Deposit Requirements
Different banks impose varying minimum deposit requirements, ranging from $500 to $75,000 or more. Ensure that any CD you’re considering aligns with the amount you plan to invest.
FDIC Insurance Protection
Most banks and credit unions participate in FDIC or NCUA insurance programs, protecting deposits up to $250,000. Verify this protection before committing your funds, particularly with smaller or less familiar institutions.
Early Withdrawal Penalties
Traditional CDs impose penalties for early withdrawal, typically forfeiting several months of interest. No-penalty CDs like those offered by Climate First Bank provide flexibility at the cost of slightly lower rates.
Laddering Strategy
Many sophisticated savers employ CD laddering, purchasing multiple CDs with staggered maturity dates. This strategy provides regular access to maturing funds while maintaining exposure to higher-yielding longer-term products.
Historical Context of CD Rates
Understanding historical CD rate trends provides perspective on current market conditions. In the early 1980s, CD rates surged into double digits, reflecting the high-inflation environment of that era. By 2019, the APY for a five-year CD had slightly exceeded 3.00%, representing the more modest rates that prevailed during the low-rate environment following the 2008 financial crisis.
Throughout the early 2020s, top CD rates typically remained below 1.00% APY until the Federal Reserve initiated its aggressive rate-hiking campaign in 2022. This resulted in CD rates surpassing 5.00% APY in 2024, offering some of the most attractive returns in decades. In 2025, however, rates have moderated with many offerings clustering just under or just above the 4.00% mark.
CD Rates for Large Deposits
Investors with substantial savings may find specialized CD products offering slightly enhanced rates. For deposits of $50,000 or more, top-tier CDs on short-term products typically offer rates between 4.25% and 4.45% for three-month and six-month terms. One-year CDs for this deposit range generally offer approximately 4.20% APY.
Frequently Asked Questions
Q: What is the highest CD rate available right now?
A: As of November 2025, the highest CD rate available is 4.30% APY offered by NBKC Bank on its 7-month CD. Other competitive rates include 4.27% APY from Climate First Bank on six-month CDs and 4.20% APY from Newtek Bank on six-month CDs.
Q: Should I lock in a CD rate now or wait for rates to potentially increase?
A: With the Federal Reserve having recently cut rates and rates trending downward, locking in current rates protects against future declines. If you believe rates will rise, you might consider shorter-term CDs to reassess your options as terms mature. However, market timing is risky, and current rates remain historically reasonable.
Q: What’s the difference between a CD and a high-yield savings account?
A: CDs require you to lock your money away for a specified term and impose penalties for early withdrawal, but they typically offer higher rates than savings accounts. High-yield savings accounts provide liquidity and flexibility but generally offer lower rates.
Q: How does CD laddering work?
A: CD laddering involves purchasing multiple CDs with different maturity dates. For example, you might buy five one-year CDs maturing in consecutive months. This strategy provides regular access to maturing funds while maintaining exposure to higher rates on longer-term products.
Q: Are CD rates likely to increase in 2026?
A: CD rates are primarily influenced by Federal Reserve policy and economic conditions. While rate predictions are uncertain, the current trend shows rates stabilizing after recent declines. Consult financial forecasts and your personal timeline when making CD decisions.
Q: What is a no-penalty CD?
A: A no-penalty CD allows early withdrawal without forfeiting earned interest. These products typically offer slightly lower rates than traditional CDs in exchange for greater flexibility, making them suitable for uncertain financial situations.
References
- Best CD Rates for November 2025: Up to 4.30% — NerdWallet. 2025. https://www.nerdwallet.com/banking/best/cd-rates
- Top CD rates Nov. 26, 2025 — Fortune. 2025. https://fortune.com/article/cd-rates-11-26-25/
- Best CD Rates Of November 2025 – Up to 4.25% — Bankrate. 2025. https://www.bankrate.com/banking/cds/cd-rates/
- What is the best CD rate for $50,000? — CBS News. 2025. https://www.cbsnews.com/news/whats-best-cd-rate-for-50000-september-2025/
- Historical CD Interest Rates 1984-2025 — Bankrate. 2025. https://www.bankrate.com/banking/cds/historical-cd-interest-rates/
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