Taylor Scott
Certificates of deposit (CDs) are fixed-interest accounts where you can deposit your money and then withdraw it later. Banks generally offer higher rates on CDs than on savings and money market accounts, in exchange for you keeping the funds tied up for a set period. The top CD rates continually change, based on the U.S. interest rate environment. When the federal funds rate is low, CD rates tend to be low, and when the fed funds rate is high, CD rates tend to be high. Online banks or credit unions tend to offer high CD rates because of their lower overhead costs.
| Characteristics | Values |
|---|---|
| Date | August 2025 |
| Highest CD rate | 4.60% APY from Connexus Credit Union |
| Highest CD rate provider on 6 August 2025 | 4.50% by Northern Bank Direct on its six-month CD |
| Highest-earning account | Service Credit Union's seven-month CD at 4.50% APY |
| Highest yield from DCU Regular CDs | 4.00% APY with a $500 minimum deposit |
| Highest one-month CD rate | 4.30% APY from Vanguard Brokered Certificates of Deposit |
| Lowest minimum deposit amount | $500 at Marcus by Goldman Sachs and DCU |
| Highest minimum deposit amount | $1,000 at Vanguard Brokered Certificates of Deposit and Bask Bank |
| Longest CD term | Six years at Marcus by Goldman Sachs |
| Maximum amount for opening online | $250,000 |
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What You'll Learn
Online banks with the highest CD rates
Online banks tend to offer higher CD rates than their brick-and-mortar counterparts due to their lower overhead costs. It's important to ensure that the online bank you choose has FDIC or NCUA insurance. Many online banks are also online arms of larger, traditional banks, which can give you peace of mind.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers CD terms ranging from six months to six years, with a minimum required opening deposit of $500, which is lower than that of some other banks. The rates are competitive for most terms, and the bank offers no-penalty CDs and a bump-rate CD. Marcus' CD penalties are generally on the lower end compared to those at competing banks.
Limelight Bank
Limelight Bank is an online bank based in Utah that offers its CDs nationwide. It has four CD terms: six months, one year, 18 months, and three years. The rates are competitive, and this mix of terms gives customers flexibility in choosing a CD that matches their short-term savings needs.
Bask Bank
Bask Bank is the online division of Texas Capital Bank, and it offers only short-term CD terms ranging from three months to two years. All its CDs offer competitive yields, but the bank does not offer any specialty CDs, such as no-penalty CDs. The minimum deposit required to open a CD at Bask Bank is $1,000, and the penalty for early withdrawal is 90 days of interest on its one-year CD, which is on the lower end.
Popular Direct
Popular Direct is an online bank and a subsidiary of Popular Inc., a financial services company with over 130 years of history. It offers CDs in eight terms, ranging from three months to five years.
Discover
Discover is the online banking division of the credit card issuer and has one of the widest ranges of CD terms among online banks. It requires no opening minimum, and its rates tend to be above average.
Bread Savings
Bread Savings is an online-only banking division of Bread Financial. The bank offers consistently high CD rates, but the $1,500 minimum balance is somewhat steep among online banks. Early withdrawal penalties are slightly more expensive than at some other online banks.
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Banks with the highest short-term CD rates
Banks and credit unions usually offer certificates of deposit (CDs), which are fixed-interest accounts where you can deposit your money and withdraw it later. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) for up to $250,000.
Online banks or credit unions tend to offer higher CD rates because they have lower overhead costs. Big banks like Citibank, U.S. Bank, Bank of America, Chase, Capital One, Wells Fargo, and American Express also offer CDs, but they may not pay the highest CD rates.
Bask Bank
Bask Bank is the online division of Texas Capital Bank, offering only short-term CD terms ranging from three months to two years. All CDs offer competitive yields, but you need at least $1,000 to open an account.
First Internet Bank of Indiana
First Internet Bank of Indiana was established in 1999 and offers eight terms of CDs, with competitive APYs and a wide range of term lengths ranging from three months to five years. The minimum amount to open a CD is $1,000, which is fairly low. However, the bank has steep early withdrawal penalties.
Limelight Bank
Limelight Bank is an online bank based in Utah that offers its CDs nationwide. It has four CD terms: six months, one year, 18 months, and three years. The rates are competitive, and you need at least $1,000 to open an account.
DCU
DCU offers a three-month CD with a yield of 4.00% APY and a low balance requirement. To join DCU, you must open a Primary Savings account with a minimum deposit of $5. Membership starts at $10 if you're not eligible by community or company.
Service Credit Union
Service Credit Union offers a seven-month CD that earns 4.50% APY, making it the highest-earning account on Forbes Advisor's list.
It's important to note that CD rates can change, and the best rates tend to be on shorter terms, such as one-year CDs or less. When choosing a CD, consider your financial goals and the term length that best fits your needs.
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Banks with the highest long-term CD rates
When it comes to finding the banks with the highest long-term CD rates, there are a few key things to keep in mind. Firstly, online banks or credit unions tend to offer higher rates due to lower overhead costs. It's also important to understand that CD rates fluctuate daily, so it's worth checking for the most up-to-date information. With that said, as of August 2025, here are some banks with competitive long-term CD rates:
Synchrony Bank
Synchrony Bank offers competitive yields on their long-term CDs, with a three-year CD earning 4.00% and a five-year CD earning 4.15%. These CDs require no minimum balance to open and interest is compounded daily. However, there is a high early withdrawal penalty of 365 days' interest for CDs with terms of 48 months or more.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers CD terms ranging from six months to six years, with a minimum opening deposit of $500, which is lower than some other banks. They also offer no-penalty CDs and a bump-rate CD, with generally lower penalties compared to competitors.
Morgan Stanley Private Bank
Morgan Stanley Private Bank offers a range of CD terms from six months to five years, with no minimum deposit requirement. However, they have high early withdrawal penalties of 270 days of simple interest on their three-year CD and 450 days of simple interest on their five-year CD.
Limelight Bank
Limelight Bank is an online bank based in Utah offering CDs with terms of six months, one year, 18 months, and three years. While they require a minimum opening deposit of $1,000, their rates are competitive, and they offer flexibility for customers looking for short-term savings options.
Connexus Credit Union
Connexus Credit Union, headquartered in Wasau, Wisconsin, offered the highest CD rate of 4.60% APY as of August 14, 2025. To join the credit union, you need to donate $5 to the Connexus Association and hold $5 or more in a savings account.
It's important to remember that CD rates can change, and each bank will have its own terms and conditions. Be sure to shop around and consider your own financial goals and needs before choosing a CD.
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Banks with the highest no-penalty CD rates
No-penalty CDs are a good option if you want access to your cash before the end of the term while still offering a guaranteed fixed annual percentage yield (APY). However, the downside is that they likely offer a lower APY than a traditional CD with the same term.
M.Y. Safra Bank
M.Y. Safra Bank offers a 13-month no-penalty CD with a competitive rate of 4.05% APY, but it also has a steep $5,000 minimum deposit requirement. Early withdrawal of funds without penalty is allowed up to two times, with the third withdrawal resulting in account closure.
America First Credit Union
America First Credit Union offers a 4.05% APY, with a lower minimum deposit of $500. They offer a 12-month Flexible Certificate account that differs from a traditional no-penalty CD. It allows one penalty-free withdrawal during the first five calendar days of each quarter and customers can deposit up to $10,000 into the CD each month, with up to $100,000 in total additional deposits.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers three no-penalty CDs with competitive yields and a low minimum opening deposit of $500:
- 7-month CD: 4.15% APY
- 13-month CD: 4.15% APY
- 11-month CD: 3.90% APY
Climate First Bank
Climate First Bank offers a 6-month CD with a 4.34% APY and a minimum deposit of $500.
Bank of America
Bank of America offers a no-penalty CD, which it calls a "flexible CD", for a 1-year term. The opening minimum deposit is $1,000, which is on the lower end. The rate is based on a San Francisco ZIP code and may vary by location.
CIT Bank
CIT Bank offers an 11-month CD with a 3.50% APY and a $1,000 minimum deposit.
Ally Bank
Ally Bank offers an 11-month no-penalty CD with no minimum balance and a competitive rate. This Florida-based community bank is available online to U.S. residents nationwide. It also offers a six-month term with a low opening minimum requirement of $500.
It is important to note that online banks or credit unions tend to offer higher CD rates due to lower overhead costs. Big banks like Citibank, U.S. Bank, Bank of America, Chase, Capital One, Wells Fargo, and American Express also offer CDs, but they may not have the highest rates.
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Banks with the highest CD rates for large deposits
When it comes to finding the banks with the highest CD rates for large deposits, there are a few key things to keep in mind. Firstly, online banks and credit unions tend to offer higher interest rates than traditional brick-and-mortar banks due to lower overhead costs. This includes online-focused credit unions like Alliant Credit Union, which offers a strong lineup of certificates with a low minimum deposit of $1,000. Secondly, it's important to understand the different types of CDs available, as some types such as jumbo CDs are specifically designed for large deposits. Jumbo CDs typically require a minimum opening deposit of $50,000 or $100,000 and may offer higher interest rates than standard CDs.
While big banks like Citibank, U.S. Bank, Bank of America, Chase, Capital One, Wells Fargo, and American Express offer CDs, they may not provide the highest interest rates. It's always a good idea to shop around and consider smaller institutions, as they often offer more competitive rates to attract customers. For example, Synchrony Bank's three-year and five-year CDs offer competitive APYs of 4.00% and 4.15% respectively, and they don't require a minimum balance to open.
Another option to consider is Service Credit Union, which offers a seven-month CD with an APY of 4.50%, the highest-earning account on Forbes' list for August 2025. Digital Federal Credit Union (DCU) also offers a competitive APY of 4.00% on its three-month CD, with a relatively low balance requirement of $500. Additionally, United Fidelity Bank offers a special ten-month CD that currently has the top rate tracked by Bankrate's editorial team.
When comparing CD rates, it's important to consider the term length, minimum deposit requirements, early withdrawal penalties, and the frequency of compounding interest. By evaluating these factors, you can make an informed decision about which CD account will provide the best return on your large deposit. Remember that CD rates can vary and are subject to change, so it's always a good idea to stay informed about the latest rates and financial trends.
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Frequently asked questions
As of August 2025, the highest CD rate is 4.60% APY from Connexus Credit Union. Other banks with competitive rates include Service Credit Union, Digital Federal Credit Union, Vanguard, Bask Bank, and Limelight Bank.
CD stands for Certificate of Deposit. It is a type of fixed-interest account where you deposit money for a specified period, after which you can withdraw it with interest.
When choosing a CD, it's important to compare APYs (Annual Percentage Yields) and compounding schedules. It's also essential to understand early withdrawal penalties and minimum deposit requirements.
Online banks and credit unions often provide higher CD rates due to lower overhead costs. Smaller regional institutions may also offer more competitive rates than larger banks, which focus on other financial products.
CDs are generally safe because they are insured by the FDIC or NCUA, usually up to $250,000. This insurance covers your money across all accounts at a bank or credit union.
