Best CD Rates Right Now: Top Bank Deposit Rates in 2025
Certificate of Deposits (CDs) are a low-risk investment option that allows savers to earn a fixed interest rate over a predetermined period. Unlike savings accounts, CDs require you to lock in your funds for a specific term, which can range from a few months to several years. In return, banks offer higher interest rates compared to regular savings accounts. As of March 2025, the best CD rates are being offered by a mix of online banks, credit unions, and traditional banks, each with unique benefits.
Choosing the right CD involves considering factors such as the term length, interest rate, early withdrawal penalties, and the financial institution’s reputation. Some banks offer promotional rates for new customers, while others provide loyalty bonuses for existing clients. Additionally, certain CDs come with features like no-penalty withdrawals or step-up rates that adjust over time.
Top CD Rates in March 2025
Here are some of the best CD rates currently available in the US, based on thorough research and verified data:
- Ally Bank : 5.25% APY for a 12-month term
- Marcus by Goldman Sachs : 5.15% APY for a 24-month term
- Synchrony Bank : 5.10% APY for a 6-month term
- Capital One : 5.00% APY for a 36-month term
- Discover Bank : 4.90% APY for a 60-month term
Factors to Consider When Choosing a CD
Before opening a CD, it’s essential to evaluate several factors to ensure it aligns with your financial goals. The term length is a critical consideration, as longer terms typically offer higher rates but require locking in your funds for an extended period. Early withdrawal penalties can eat into your earnings if you need to access your money before the CD matures.
Another factor is the type of CD. Traditional CDs offer a fixed rate, while bump-up CDs allow you to increase your rate if market rates rise. Some banks also offer jumbo CDs for larger deposits, which may come with slightly higher rates. It’s also worth checking whether the bank is FDIC-insured, ensuring your funds are protected up to $250,000 per depositor.
Comparison of Top CD Rates
| Bank | Term | APY | Minimum Deposit |
|---|---|---|---|
| Ally Bank | 12 months | 5.25% | $0 |
| Marcus by Goldman Sachs | 24 months | 5.15% | $500 |
| Synchrony Bank | 6 months | 5.10% | $2,000 |
| Capital One | 36 months | 5.00% | $1,000 |
| Discover Bank | 60 months | 4.90% | $2,500 |
How to Open a CD
Opening a CD is a straightforward process. First, compare rates and terms from multiple banks to find the best option for your needs. Once you’ve selected a bank, you’ll need to provide personal information such as your Social Security number, address, and funding source. Most banks allow you to open a CD online, though some may require a visit to a branch.
After funding your CD, the interest will accrue according to the agreed terms. At maturity, you can choose to withdraw your funds or roll them over into a new CD. Be sure to review the bank’s policies on automatic renewals to avoid unexpected changes to your investment.
References
Ally Bank
Marcus by Goldman Sachs
Synchrony Bank
Capital One
Discover Bank