Best CD Rates for February 2025

The year 2025 is starting with a bang! CD rates are making a strong comeback. These deposit products have resurfaced and should play a key role in your financial strategy. Currently, some rates are reaching up to 4.60%! Banks can change rates at any time, so secure a high rate now! You might also encounter some annuities alongside CD offers, as they operate similarly, with some rates as high as 5.70%!

In the past 15 years, certificates of deposit (CDs) struggled to be attractive as an investment choice because of low interest rates. However, a significant change has taken place with the Federal Reserve's move to raise borrowing costs. Although borrowing money for a car is now more expensive, CD rates are reaching unprecedented highs, offering a safe and guaranteed method for your money to generate income.

MyBankFinder has taken a look across different financial institutions and found some of the best rates for CDs in the market. View Details below for our top options!

Navigating the CD Landscape: A Strategic Approach

If you are starting out in your financial journey and not sure a Certificate of Deposit (CD) is right for you, we have created a guide for you to explore whether it fits within your financial planning!

Prioritize Rates:

The main reason people look to invest is to maximize their earnings on the money they have worked hard to save. Do research to find top rates for CDs, you will typically have more luck with online/smaller financial institutions as they are usually able to offer higher rates.

Consider Time:

CDs are meant to be a planned investment vehicle, therefore there is usually a set amount of time your money will need to be stored away in this account. Some financial institutions go as low as 6 months, but some accounts have a 5 year lock in period.

Examine Withdrawal Penalties:

Withdrawing from your CD earlier than what the lock in period was could come with penalties, you will want to review your financial situation to ensure you can keep the money in within the allotted time frame.

Check Requirements and Insurance:

Examine the CD requirements, such as minimum balance needs, before committing. Also, ensure the security of your investment by verifying that the selected CD is insured by trusted organizations like the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which secure funds up to $250,000 per depositor.

Compare CDs:

With a curated list of top CDs in hand, thoroughly compare your choices. Use a CD calculator for an in-depth analysis. Ensure your decision aligns with your financial objectives and risk tolerance.

Best 1-Year CD Rates:

In 2025, 1-year CDs are gaining attention for their balance of low commitment and appealing returns. The top national rate for a 12-month CD is currently 4.25% APY. This advantageous situation is due to the Federal Reserve's significant rise in short-term rates and market expectations of an economic slowdown in the future. Strategically investing in this area could lead to profitable outcomes.

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Want a high APY without tying up your funds?

High Yield Savings Accounts

High Yield Savings accounts are a great tool if you are still looking for somewhere to park extra cash, without having the restrictions of lock in periods. We have done some digging on savings accounts as well. View Details below to see what we found!