After two years of rapid interest rate hikes, the Federal Reserve has held steady throughout 2025. But with whispers of rate cuts on the horizon, this may be the best window we’ll see for locking in attractive CD (certificate of deposit) yields for years to come.
Right now, the nation’s top CD rate stands at 4.60%—available through two options: a 6-month CD from Northern Bank Direct and a 19-month CD from Genisys Credit Union. For savers who prefer a longer-term commitment, 3- to 5-year CDs are offering solid rates between 4.28% and 4.40%, allowing you to lock in today’s yield all the way through 2030.
Take Jack, a software engineer living in Seattle. He had a chunk of his year-end bonus set aside for the stock market, but after seeing the latest CD rates, he decided to split his funds—putting a sizable portion into a 4-year CD paying 4.40%. “Honestly, I don’t know what the market will do next. But if I can secure a 4.4% return with zero risk for the next four years, that’s a win in my book,” he said.
Jack isn’t alone. Despite the fact that CD rates have retreated from their October 2023 peak—when they briefly touched 6%—today’s rates remain historically strong. To put it in perspective: in early 2022, top CD rates hovered between just 0.50% and 1.70%.
Short-term CD options also look competitive. PenAir Credit Union offers a 21-month CD at 4.50%—locking in your rate through April 2027. NASA Federal Credit Union has a 9-month CD at 4.59%, while both Abound Credit Union and Genisys Credit Union are paying 4.50% on 10- and 13-month terms. If you want a classic 12-month option, Pelican State Credit Union is offering 4.49%.
And if you’re open to going longer—say, 3, 4, or 5 years—you can still score strong rates. Lafayette Federal Credit Union offers 4.28% for both 3- and 5-year terms, while NASA Federal Credit Union leads with 4.40% for a 49-month CD. That’s nearly four years of guaranteed returns, well beyond any rate volatility that may lie ahead.
Emily, a freelance designer living in Brooklyn, recently committed to a 5-year CD. “I like to keep some cash liquid for emergencies, but I don’t want my savings just sitting in a regular account doing nothing,” she explained. “The CD gives me peace of mind. No surprises, no losses—just steady growth.”
Importantly, every CD at a federally insured bank or credit union is backed by the U.S. government for up to $250,000 per person, per institution. Whether you’re using a big national bank or a small regional credit union, your deposit is equally protected.
What about jumbo CDs? These products require a higher minimum deposit but sometimes offer better yields. Right now, they only beat standard CD rates in two categories. For instance, Hughes Federal Credit Union is offering a 3-year jumbo CD at 4.34%, compared to the highest standard rate of 4.28%. For a 5-year term, both GTE Financial and Lafayette Federal Credit Union offer 4.33% jumbo CDs—again, slightly higher than standard offerings.
Of course, not everyone needs a jumbo product to benefit. Tom, a retired teacher in Chicago, is spreading his savings across multiple shorter-term CDs. “I don’t want to lock everything up in one long CD, even if the rate’s good. By laddering them, I keep my flexibility.”
So, what lies ahead for CD rates in the second half of 2025? No one knows for sure. The Fed has cut rates three times since last fall, dropping its benchmark by a full percentage point—but has stood pat through four meetings this year. While inflation is easing, policymakers are waiting for clearer data before making their next move.
If more cuts do come, today’s CD rates could be as good as it gets for a while. That’s why now might be a smart time to act—especially if you’re looking for a safe, guaranteed return in an uncertain market.
Just don’t assume the national “average” CD rate you see at big banks tells the whole story. Those numbers are often skewed downward by institutions that offer paltry yields. If you take the time to shop around, it’s possible to find CDs paying 5 to 10 times more than the average.
As Emily put it, “I’m not expecting CDs to make me rich. But they help me sleep better at night, knowing at least part of my money is working quietly and reliably.”