Best Banks for CD Rates for July 2025

*Rates and APYs are subject to change. All information provided here is accurate as of June 30, 2025.

Investing in the stock market can allow your money to grow, but also involves risk. Storing your cash in a savings account doesn’t come with risk, but it also means the value of your funds will be eroded by inflation over time. Certificates of deposit (CDs) offer something in the middle.

These accounts offer annual percentage yields (APYs) that are higher than what you’ll see on many savings accounts, even high-yield savings accounts (HYSAs). In exchange for those higher rates, you’ll have to lock up your funds for a certain amount of time — typically between three months and five years. If you have money that you know you won’t need for the length of the term, putting it in a CD could be a good option.

Read on for our list of banks and credit unions offering the best CD rates in the market now, as well as a guide on how these accounts work and how to choose the best one for you.

What to know about CDs rates

• The APYs on CDs change regularly as banks and credit unions tend to follow in the footsteps of the Federal Reserve when it comes to hiking and cutting interest rates. But once you open a CD, you’re locked in with that rate until the term expires — for better or worse.
• While a CD’s interest rate is the percentage of interest you’d earn on the account, the APY is the interest you’d earn on that money in one year. APY is the more commonly referenced figure when it comes to CDs.
• Online banks and credit unions are often able to offer higher CD rates, since they’re not paying the overhead of running physical branches. Credit unions, however, generally require you to become a member first.

How we chose our top picks

Our editors and writers assessed roughly 60 CD offerings from some of the largest and most popular commercial banks, credit unions and online banks. We collected CD rates for varying terms, as well as minimum balance requirements and special promotions.

Read our full methodology here.

Our top picks for the Best CD Rates for July 2025

Listed alphabetically, these are the banks offering top CD rates right now.

• Bask Bank
• Bread Savings
• First Internet Bank
• Limelight
• Live Oak
• Marcus by Goldman Sachs
• NASA Federal Credit Union
• Newtek Bank
• Popular Direct
• Tab Bank

Why we chose this company: As an online-only bank, Bask is able to offer its customers attractive rates on savings products, including CDs. It offers the highest APYs on three-month CD and one-year CDs of all the institutions on our list at 4.25% and 4.30%, respectively.

At maturity, Bask will automatically roll your funds over to a CD of the same term length with the current interest rate, unless you opt to redeem and close your account. The bank will remind you 30 days before the term ends. Once it does, you’ll have 10 days to add funds,make a partial withdrawal or close out the account without facing a penalty. If you need to withdraw early, the fee is 90 days’ worth of interest for CDs with terms of one year or shorter, and 180 days of interest for those greater than one year.

If you’re looking for a longer-term CD, you may want to look elsewhere: Bask doesn’t offer CDs with terms of longer than two years.

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Why we chose this company: Bread Savings has become a go-to for high-yield savings accounts and CDs — and for good reason. The online-only bank offers a whopping 4.45% APY on six-month CDs, and attractive rates across the board. But the $1,500 minimum deposit requirement is higher than the $500 or $1,000 you’ll typically see.

As usual, there is an early-withdrawal penalty: 90 days of interest for terms shorter than one year, 180 days of interest for terms between one and three years, and 365 days of interest for terms of four years and more. CDs automatically renew unless you close the account or notify the company that you don’t want to renew. Bread Savings has the typical 10-day grace period.

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Why we chose this company: First Internet Bank — an online bank that has a wide range of savings accounts — stands out for its attractive rates on a range of CDs. Unlike some of the other institutions listed here, First Internet has a three-month CD, though its APY is lower than what you can get on many of the bank’s longer-term CDs.

The early-withdrawal penalties are higher overall than what you’ll see at many banks: 90 days of interest for the three-month CD, 180 days interest for terms of between six and 18 months, and 360 days interest for terms of two years and more. By comparison, many of our top picks don’t charge more than 180 days’ worth of interest for early withdrawal penalties. CDs automatically renew at maturity. You have a 10-day grace period to withdraw without penalty, or you can send a written notice to not renew the CD.

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Why we chose this company: Limelight Bank offers four CDs with terms of between six months and three years that have APYs of 3.80% to 4.40% — extremely attractive rates for savers. The online bank owned by Capital Community Bank (CCBank) offers a 10-day grace period after the maturity date to withdraw funds without penalty.

If you have to withdraw the money early, there’s a penalty of 90 days of interest for the six-, 12- and 18-month CDs, and 180 days interest for the 36-month CD.

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Why we chose this company: If you’re looking for a short-term CD, Live Oak is a good option. The bank offers a 4.10% APY on its 1-year CD, 4.00% on its 9-month CD, 3.90% APY on its six- and 18-month CDs and 3.00% on its three-month CD. The APYs then drop to 2.00% for CDs with longer terms than a year.

At maturity, the CD will automatically renew at the same term unless you choose to withdraw your funds within the 10-day grace period. If you withdraw early, there’s a fee of 90 days of interest for CDs of less than two years, and 180 days of interest for CDs of two years or more.

The minimum $2,500 deposit requirement is higher than the standard $1,000. Live Oak also has a maximum amount you can put in a CD: $250,000, which is the maximum amount covered by the Federal Deposit Insurance Corporation (FDIC).

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Why we chose this company: Marcus has become a go-to for high-yield savings accounts — but the online banking platform from Goldman Sachs also has a wide variety of CDs with attractive yields.

In addition to APYs of more than 3.75% on its CDs with traditional term lengths, Marcus also offers CDs with no penalty for early withdrawal with seven-, 11- and 13-month terms, as well as a 20-month CD that allows you to request a rate increase if interest rates rise during the term, also known as a “bump-up” CD. The $500 minimum deposit requirement is lower than the more standard $1,000, making Marcus’ CDs even more accessible.

There’s an early-withdrawal fee of 90 days interest for CDs with terms a year or less, a fee of 180 days interest for those with terms of one to five years, and a fee of 270 days interest for those with terms of more than five years. When your CD matures, you will have 10 days to withdraw your balance without a penalty, renew your CD with the same term at the current APY or close your CD and open a new one with a different term.

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Why we chose this company: If you’re looking for options, NASA Federal Credit Union is the place to go. The credit union has a wide range of terms, including those you may not see elsewhere like 15 and 49 months (though these come with a high $10,000 minimum deposit requirement). There are also bump-up CD options for two- and three-year CDs, and a one-year add-on CD with a minimum deposit requirement of $250 that allows you to deposit up to $2,500 more each month. For savers age 23 and below, the one-year “Early Savers” CD has a minimum deposit requirement of just $50.

The early-withdrawal penalties are 182 days of interest for terms of less than two years and 365 days of dividends for terms of two years or more. The grace period is 10 days, and CDs will be automatically renewed unless you opt out.

You need to be a member of the credit union, which began as a banking institution for NASA employees, to open a CD. Today, though, non-astronauts can join if they first become members of the National Space Society (NSS), which will give you eligibility.

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Why we chose this company: Newtek Bank is an online-only bank that offers a range of CD offerings with terms of between six months and five years. The best APYs are for the shortest terms, six months and one year — though note that there’s no three-month CD. If you’re hunting for a long-term CD, you may want to look elsewhere: The four- and five- year CDs only have a 2.00% APY.

If you withdraw your money early, you’ll face a fee of 90 days of interest for CDs with terms of less than a year, and 180 days of interest for CDs with terms of a year or longer. Once your CD matures, the account will renew. You’ll only have seven days after maturity to withdraw funds without a penalty — shorter than the typical 10-day grace period.

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Why we chose this company: Popular Direct offers competitive rates on eight different CDs ranging from three months to five years, making this a good pick if you plan to create a CD ladder. The online-only platform makes it easy to access your account via mobile or desktop any time of the day, and you can easily open an account online.

The bank will automatically renew your CD once it matures after a 10-day grace period, though it will send reminders that the maturity date is coming up so you can opt out of the renewal ahead of time (and you can do so even before Popular Direct starts sending you reminders).

The fee for early withdrawal is 89 days of interest for terms less than 91 days, 120 days of interest for terms between 91 and 364 days, 270 days of interest for terms of one to three years, 365 days of interest for terms three to five years and 730 days for terms of more than five years. Most of our other top picks only impose an early-withdrawal penalty of 180 days’ worth interest on their long CD terms. The biggest downside to Popular Bank’s CD offerings, though, is that all terms have a very high required minimum balance of $10,000.

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Why we chose this company: Tab Bank offers competitive APYs on all of its CDs, with the highest being the 4.10% APY on a one-year CD. If you’re looking for a shorter-term CD, however, you won’t find that at Tab. The bank doesn’t offer any CDs with terms shorter than a year.

Like at other banks, you’ll face an early-withdrawal penalty if you withdraw your money before the term ends and the CD matures. The penalty on the one-year CD is 90 days of interest, while it’s 180 days on the CDs with longer terms. Tab offers the typical 10-day grace period once your CD matures to withdraw your money, but you’ll have to notify the bank via email within that 10-day period if you don’t want your CD to renew automatically. You can receive interest payments via check, transfer or compounding.

Other CDs we considered

We looked at an array of financial institutions to find the best CD rates. The following list includes some of the companies we reviewed that, while they didn’t make the final cut, we still consider noteworthy.

We assessed many CDs at major banks and credit unions that ultimately did not make our list. Below are several CDs that were not named here, but may have what you’re looking for.

Capital One

Capital One has attractive APYs on a range of CDs and there’s no minimum balance requirement. If you’re looking for a one-year CD, you may want to consider this bank with its 4.00% APY. The six- and nine-month CDs are also attractive with 3.80% APYs. However, its rates overall were less competitive.

Discover

Discover has a wide range of CD terms. It’s especially worth considering if you’re looking for a place to park your long-term savings, since it offers 3.50% APY on seven- and 10-year CDs. There’s no minimum deposit requirement to open a CD, but its APYs are generally lower than others on the market.

LendingClub

With APYs of 4.00% and 4.25% on its six- and 14-month CDs, respectively, LendingClub offers relatively competitive rates. It offers four other CDs with APYs between 3.40% and 3.75% with just a $500 minimum deposit requirement — but its rate are lower overall than our picks.

What you need to know about CDs

CDs can be a great place to park cash that you know you may not need for a certain period of time. For instance, if you’re planning to buy a house in three years, you can consider a three-year CD so that the money grows, but will be ready to withdraw once it’s time to make a downpayment.

CDs, like all savings and investing vehicles, come with their pros and cons.

CD Pros

• Attractive rates: The APYs on CDs tend to be higher than those on even the most generous HYSAs.
• Low risk: Unlike investing in the stock market, CDs come with a guaranteed interest rate, no matter how interest rates move. At the end of the term, you’ll get your full deposit back.
• Federally-insured: These accounts are backed by the FDIC or NCUA as long as you open them with an insured bank or credit union.
• No fees: Unlike some savings accounts, CDs don’t tend to charge monthly fees.
• Easy to calculate your return: Because CDs have fixed rates, determining how much interest you’ll earn during the term is simple.

CD Cons

• Lack of flexibility: If you withdraw money from a CD early, you’ll face an early-withdrawal penalty, so make sure you can keep your money in them for the full term.
• Low investment return: Compared to stocks and bonds, CDs don’t earn as much (the highest currently offer APYs of just over 4%, which is much lower than the S&P 500’s average yearly return of roughly 10%).
• Fixed rate: While this will benefit you if interest rates fall during your term, you may miss out on better returns if they rise.
• Minimum deposit requirements: Some CDs have minimums of $1,000 or more.

How do CDs work?

CDs are a savings vehicle in which you agree to lock up your money at a bank or credit union for a certain period of time — called the term — for a guaranteed, fixed rate of return.

Banks and credit unions offer a wide variety of terms, though most are between three months and five years, and not all banks offer the same terms. The CD may also have a required minimum deposit, like $500 or $1,000, you’ll have to agree to before you invest.

In most cases, interest accrues within the CD during the term, which contributes to your total return thanks to compounding. Some banks will have let you opt to get regular interest payments throughout the term, but this will reduce your total earnings at the end of the term.

When the term expires, you generally choose between rolling over the money into another CD or withdrawing the proceeds. If you pull your money out of a CD before the term is up, the bank will charge an early-withdrawal penalty (except in the case of no-penalty CDs), generally between 90 days and a year’s worth of interest.

Types of CDs

Banks and credit unions offer different types of CDs. Here are some of the options you may come across:

• Traditional CD: These are most common, with fixed interest rates and early-withdrawal penalties.
• No-penalty CD: As the name implies, these CDs allow you to withdraw money before the term expires without facing a fee. However, they’re less common and often have lower interest rates.
• Bump-up CD: Also referred to as “raise-your-rate CDs,” these accounts typically allow you to ask for one rate increase during your term, so if interest rates jump, you won’t miss out
• Jumbo CD: These CDs have higher minimum deposits than traditional CDs, often $50,000 or $100,000.
• IRA CD: These let you put pre-tax individual retirement account contributions into a CD.

How to choose a CD

Putting your cash into a CD allows you to watch your money from on your terms. But it’s important to carefully decide which type of CD is right for you. Here’s how:

• Compare rates: Comparison-shopping is important because CD rates vary widely. That’s where our list above should come in handy.
• Choose a type of CD: Most banks and credit unions offer traditional CDs, but you may also be able to find no-penalty and bump-up CDs. If you’re specifically looking to save for retirement, look for a bank that offers IRA CDs.
• Pick the right term: Pick a term length based on your goals and how long you can have the money locked up for. It’s good if you can be flexible, since many banks offer special, higher-rate CDs with offbeat terms like seven or 11 months.
• Understand the terms:Read through the terms of the CD to familiarize yourself with the early-withdrawal penalty, maturity date and grace period.
• Check the minimum deposit requirement: Since many CDs come with a minimum deposit requirement, pick one that fits your budget.

Alternatives to CDs

CDs can make a good addition to a savings and investment portfolio — but depending on your situation, they may not be the best choice. Here are some alternatives to consider:

• High-yield savings accounts: If you’re looking for a place to park your cash but still have it readily accessible, high-yield savings accounts typically have higher APYs than traditional savings accounts, but lower than CDs.
• Money market accounts: Like CDs, money market accounts (MMAs) earn interest. However, MMAs have a blend of features you’ll find with both checking and savings accounts, such as access to your funds with debit cards and ATM withdrawal options. You can also add money, which you can’t do with a typical CD.
• Bonds: When you buy a bond, you’re essentially loaning money to a company or the government. Like CDs, bonds earn interest, though you typically get the interest paid to you at regular installments versus receiving it all at the end of the term. Bonds have longer term lengths — typically one to 30 years — and tend to offer higher rates than CDs, but they’re not FDIC-insured, and come with varying levels of investor risk.
• Stocks: If you are looking for higher returns, consider investing in the stock market instead, but keep in mind that stocks come with more risk.A good rule of thumb is to only invest money you won’t need for several years.

What is a CD ladder?

A CD ladder is a strategy that entails buying CDs with varying maturity dates so that you can take advantage of attractive interest rates while having access to money when you need it. Since longer-term CDs typically have higher rates than shorter-term CDs, a ladder lets you earn more interest and keep some access to your money.

For example, if you have $10,000, you could put $2,000 in a one-year CD, $2,000 in a two-year CD and so on. When each CD expires, you can either put the money into a new CD that ends after the last CD on your ladder, or take the cash.

How we chose the best CD rates

To find the best CD rates, we collected data on the various term lengths and rates from roughly 60 of large banks and credit unions. We focused on some of the most common term lengths: 3-month, 6-month, 12-month, 1-year, 2-year, 3-year and 5-year terms. Since many of the financial institutions have similarly attractive interest rates, we zeroed in on the 1-year term when necessary, since that was a term offered by nearly all the banks and credit unions we assessed.

While we prioritized CD rates, we also considered the amount of terms companies offered, minimum balance requirements and early-withdrawal penalties. We eliminated some accounts offered by banks or credit unions that served niche communities, like those who live in one particular state.

Latest CD rate news

Savers enjoyed high APYs on CDs in 2022 and 2023, when the Federal Reserve hiked the benchmark federal funds rate 11 times to battle decades-high inflation, and banks and credit unions followed suit. However, as that benchmark interest rate has come down, so have CD rates. In June, the Fed held interest rates steady for the fourth consecutive time at a range of 4.25% to 4.50%, but it previously pointed to one or two rate cuts before 2025 wraps.

Summary of Best Banks for CD Rates for July 2025

The companies listed below are organized in descending order of top APY offered.

• • Bask Bank
  • Bread Savings
  • First Internet Bank
  • Limelight
  • Live Oak
  • Marcus by Goldman Sachs'
  • NASA Federal Credit Union
  • Newtek Bank
  • Popular Direct
  • Tab Bank

• Bask Bank
• Bread Savings
• First Internet Bank
• Limelight
• Live Oak
• Marcus by Goldman Sachs'
• NASA Federal Credit Union
• Newtek Bank
• Popular Direct
• Tab Bank