As of December 2, 2025, the highest annual percentage yield (APY) for a certificate of deposit (CD) is 5.11%, offered by Daniels-Sheridan Federal Credit Union for a 12-month term with a $500 minimum deposit. This represents a straightforward way to grow savings with minimal risk.
Why CD Rates Matter Now
CDs are a low-risk savings option, particularly relevant given recent Federal Reserve rate cuts. These cuts signal potential declines in CD rates, making it opportune to lock in higher yields before they fall further. The gap between current top rates and national averages is substantial: while the national average for a 3-year CD sits at 1.54%, Credit Union of Atlanta offers 4.35% as of today. This difference highlights the importance of shopping around.
Top CD Rates by Term
Here’s a snapshot of current rates:
- 1-Year CD: Daniels-Sheridan Federal Credit Union – 5.11% APY ($500 minimum)
- 3-Year CD: Credit Union of Atlanta – 4.35% APY
These rates are significantly better than standard savings accounts. A $10,000 deposit in the 5.11% one-year CD would yield $511 in interest.
What to Consider Before Investing
The choice between short-term and long-term CDs depends on your financial flexibility.
- Short-Term (1-Year): Ideal if you want a higher APY without locking funds away for an extended period.
- Long-Term (3-Year or More): Suited for those who don’t need immediate liquidity, as they generally offer higher rates in exchange for a longer commitment.
Consider CD laddering — a strategy where you split savings across CDs with staggered maturity dates. This maximizes returns while maintaining access to funds as each CD matures.
Key CD Terminology
Understanding these terms can help you make informed decisions:
- Add-on CD: Allows additional deposits after the initial funding.
- Brokered CD: Sold through brokerage firms, potentially offering higher rates.
- Bump-up CD: Lets you increase the APY once during the term.
- No-Penalty CD: Allows early withdrawals without penalties.
The Bottom Line
With the Federal Reserve signaling further rate cuts, now may be the best time to secure a high-yield CD before rates decline. Evaluate your liquidity needs, consider CD laddering, and choose a term that aligns with your financial goals.
The current market presents an opportunity for guaranteed returns, but it’s crucial to compare rates and terms to maximize your earnings.
