Best CDs Right Now: A Guide to Fixed-Income Securities in 2025
Fixed-income securities like CDs are low-risk investments that provide steady returns over a predetermined period. They are ideal for individuals who prioritize capital preservation over high-risk, high-reward strategies. CDs are issued by banks and credit unions, with terms ranging from a few months to several years. The interest rates are typically higher than regular savings accounts, making them a popular choice for conservative investors.
Types of Fixed-Income Securities
Fixed-income securities come in various forms, each catering to different investor needs.

- Traditional CDs: These offer a fixed interest rate for a specific term, with penalties for early withdrawal.
- Bump-Up CDs: Allow investors to request a higher interest rate if market rates rise during the term.
- Liquid CDs: Provide flexibility with no early withdrawal penalties, though often at lower interest rates.
- Brokered CDs: Sold through brokerage firms, these may offer higher yields but come with additional risks.
Benefits of Investing in CDs
CDs offer several advantages, including:
- Guaranteed returns with no exposure to market fluctuations.
- Higher interest rates compared to standard savings accounts.
- FDIC or NCUA insurance up to $250,000 per depositor, per institution.
- Flexible term options to align with financial goals.
Comparison of Top CD Rates in 2025
Financial Institution | Term | APY | Minimum Deposit |
---|---|---|---|
Ally Bank | 12 months | 3.50% | $1,000 |
Discover Bank | 24 months | 4.00% | $2,500 |
Marcus by Goldman Sachs | 36 months | 4.25% | $500 |
Synchrony Bank | 60 months | 4.50% | $1,000 |
Factors to Consider When Choosing a CD
Before investing, evaluate the following:
- Term Length: Shorter terms offer liquidity, while longer terms provide higher yields.
- Interest Rate Trends: Lock in rates if they are expected to decline.
- Early Withdrawal Penalties: Understand the costs of accessing funds before maturity.
- Institution Reputation: Choose federally insured banks or credit unions.
References
Ally Bank
Discover Bank
Marcus by Goldman Sachs
Synchrony Bank