If you want to lock in a high rate of return on your savings, certificates of deposit (CDs) are still offering some of the best rates we’ve seen in years—but they might not stay this high for long.
The COVID-19 pandemic drove inflation through the roof, and the Federal Reserve raised rates to cool off prices—to the benefit of CD investors. Now the Fed is cutting rates again as inflation falls. There were three rate cuts in late 2024, and the best CD rates fell from highs of around 6% to less than 5% in a matter of months.
The Fed has refrained from further rate cuts in 2025 so far, but some experts believe more rate cuts may come later this year. While many Americans would welcome lower rates, since that might mean lower mortgage rates, a lower federal funds rate also means lower CD yields.
But for now, there are still a number of banks offering CD rates on different term lengths above 4%, but week over week we are seeing a gradual decline. Savers who want to maximize their yield potential should lock in high rates now before they drop further.
5 best banks for CDs this week
Getting the best possible yield on your preferred term length is the most important consideration when shopping for a new CD, but it’s not the only factor. You should also keep an eye on minimum deposit requirements and any fine print—some institutions require you to also open a savings account to get their highest rates, for example.
Fortune has partnered with banking data firm Curinos to give a read on the banks with the best CD offerings on the market this week. While some competitors may offer higher rates on specific terms, they often require prohibitively large minimum deposits or are only available to local clients.
The banks below have CD rates that are higher than average and don’t require a massive opening deposit—and they can be opened online, with no memberships or in-person branch visits required.
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.
View this interactive chart on Fortune.com
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.
View this interactive chart on Fortune.com
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.
View this interactive chart on Fortune.com
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.
View this interactive chart on Fortune.com
Ally Bank: CD rates up to 4.05%
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.
View this interactive chart on Fortune.com
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.
View this interactive chart on Fortune.com
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.
