As of May 2, 2025, certificate of deposit (CD) rates remain competitive, although they have cooled from 2024 highs. After three Federal Reserve interest rate cuts last year, today’s CD rates are stabilizing. Savers still have strong options if they move quickly.
Top CD rates nationwide for May 2
Here are the highest-yielding CDs available today:
- MyBankingDirect: 4.50% APY for 6-month CD
- Marcus by Goldman Sachs: 4.40% APY for 14-month CD
- NexBank: 4.40% APY for 1-year CD
- Marcus by Goldman Sachs: 4.30% APY for 9-month CD
Most offers require a minimum deposit between $500 and $25,000. Always verify terms before opening an account, as promotions can change daily.
RELATED: Mortgage rates today: Friday, May 2, 2025
How Fed rate cuts impact CD yields
The Federal Reserve reduced its benchmark rate three times in 2024, aiming to support economic growth as inflation cooled. Those moves pushed down CD rates from record highs seen in 2022 and 2023.
However, the Fed paused additional cuts in early 2025. As a result, today’s CD rates have leveled off, offering savers a window to lock in higher returns before any future declines.
Online banks offer the best rates
Online banks and neobanks typically offer the highest CD rates. Their lower overhead costs allow them to provide better returns compared to traditional brick-and-mortar institutions. Credit unions also remain strong contenders for competitive rates, although some may have membership requirements.
What to consider before opening a CD
When choosing a CD, keep these key factors in mind:
- Term length: Shorter terms (6 to 18 months) currently yield the best rates.
- Minimum deposit: Ensure you meet the minimum requirement to qualify for top rates.
- Early withdrawal penalties: Understand the fees before committing funds.
- Deposit insurance: Confirm FDIC or NCUA coverage for your peace of mind.
A CD ladder strategy — investing in multiple CDs with staggered maturity dates — can provide flexibility while maximizing returns.
Bottom line
Today’s top CD rates still offer attractive yields, especially compared to standard savings accounts. With rates expected to drift lower later this year, locking in a high APY now could be a smart financial move.
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