Highest 1-Year CD Rates on May 5, 2025 - Unequaled 4.50% Return on 1-Year CDs Nationwide
🔔 Hot off the press! Today's top performer on our daily leaderboard is a wicked 12-month offering from Greenwood Credit Union boasting a whopping 4.50% APY – unrivaled across the nation!
Eight additional certificates are hot on its heels, all aiming for that top nationwide rate of 4.50%, with terms ranging from 3 to 18 months.
Last week, PenAir Credit Union unleashed a 21-month-long 4.40% APY offer, promising returns well into early 2027.
If you're keen on securing a return for an even longer spell, take a peek at the 3-year through 5-year certificates, with yields ranging from 4.28% to 4.32%.
With the Fed in a "wait-and-see" stance, but 2025 rate cuts eventual, it's smart to snag one of today's highest CD rates while you can.
Here's our partner featured rates lineup and a rundown of the best CDs nationwide:
💫 🔒 Grab a 4.50% Rate until Late 2026
This country's highest CD rate is 4.50%, and securing it can be done via nine different offers, including Greenwood's newly introduced 12-month certificate.
The shortest 4.50% option is sitting pretty at 3 months from PonceBankDirect. For 6 to 13 months, six institutions promise the same 4.50% rate. At the long end, XCEL Federal Credit Union is letting 4.50% APY ride for 18 months, ensuring a return through November 2026.
⚠️ 🔒 Important: Your CD Deposits are 100% Federally Insured
Rest easy knowing all your deposits, regardless of bank or credit union size, are insured by the U.S government via the FDIC (for banks) and NCUA (for credit unions). That means you're covered up to $250,000 per person and per institution, no matter what.
🔒 Stretch it Out: Lock in a Rate Until 2027 with Select Multiyear CDs
For a rate lock that lasts until February 2027, PenAir Credit Union serves up 4.40% APY for 21 months. Extend your rate lock even further by opting for a slightly lower APY: Genisys Credit Union clocks in at 4.32% on a 30-month term.
Savers long-term lovers can enjoy 4-year or 5-year certificates with leading yields of 4.28% from Lafayette Federal Credit Union. In fact, Lafayette offers the same 4.28% APY on all its certificates, from 7 months through 5 years – securing that rate all the way to 2030.
With rate cuts in 2025 and perhaps 2026 possibly on the horizon, multiyear CDs are a solid choice right now.
💡 🔒 To Get a Grip on Today's Best CDs
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CD Rates are Still Historically High Returns
You're right – CD rates aren't at their peak anymore, but despite the drop, the best CDs are still shelling out a sweet return. Rates were as high as 6% in October 2023, while today's top rate is only 4.50%. Compare that to early 2022, when the best CDs in the land offered returns ranging from just 0.50% to 1.70% APY, depending on term.
💰 🔒 Jumbo vs. Regular CDs: What's the Difference?
Jumbo CDs command higher deposits and sometimes pay premium rates – but not always. In fact, top jumbo CD rates are the same as the top standard rates in four of the eight CD terms we track.
Among 1-year, 18-month, 6-month, 3-year, 4-year, and 5-year CDs, both top standard and top jumbo CDs pay the same rate of 4.50% APY for 1-year and 18-month terms. While institutions offer higher jumbo rates in the following terms:
- 6 months: Credit One Bank offers 4.55% for 6-7-month jumbo CDs vs. 4.50% for the highest standard rate.
- 3 years: Hughes Federal Credit Union offers 4.34% for 3-year jumbo CDs vs. 4.32% for the highest standard rate.
- 4 years: Lafayette Federal Credit Union offers 4.33% for a 4-year jumbo CD vs. 4.28% for the highest standard rate.
- 5 years: Both GTE Financial and Lafayette Federal Credit Union serve up 4.33% for 5-year jumbo CDs vs. 4.28% for the highest standard rate.
In short, it's always smart to check both standard and jumbo CD options when shopping around. If your best rate deal is a standard CD, simply open it with a jumbo-sized deposit.
🎉 🔒 The Future of CD Rates: Is Another Rate Cut on the Horizon?
In December 2024, the Federal Reserve announced a third rate cut to the federal funds rate in as many meetings, reducing it a full percentage point since September. However, in January and March, the central bankers declined to make further cuts. Will they make more rate cuts in 2025 or reverse course and start raising rates?
Tariff activity from the Trump administration could shake up the Fed's course, making forecasting its moves difficult. But with additional rate cuts potentially on the way this year, now is a great time to lock in a top CD rate that suits your personal timeline.
✨ 🔒 Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
- Best 3-Month CD Rates
- Best 6-Month CD Rates
- Best 1-Year CD Rates
- Best 18-Month CD Rates
- Best 2-Year CD Rates
- Best 3-Year CD Rates
- Best 4-Year CD Rates
- Best 5-Year CD Rates
- Best High-Yield Savings Accounts
- Best Money Market Accounts
Important:
Note that the "top rates" provided here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is far from the national average, which contains all banks offering a CD with that term – many large banks that pay pennies in interest. As a result, the national average is always quite low, while the top rates out there can be five, ten, or even fifteen times higher.
- In the finance world, ieo could be an abbreviation for Initial Exchange Offering, similar to an Initial Coin Offering (ICO) where new tokens are sold.
- For those interested in personal-finance, it's important to invest in certificates of deposit (CDs) with high liquidity, allowing easy access to funds when needed.
- This year, PonceBankDirect is offering a 3-month CD with a competitive rate of 4.50%, making it one of the shortest terms with such high rates.
- Investors looking for longer-term options might consider Grab a 4.50% Rate until Late 2026 as multiple institutions offer this rate for terms between 6 to 13 months.
- Unlike CDs, token investments in the cryptocurrency market may not have the same level of strong guarantees provided by FDIC or NCUA insurance in the banking sector.
- To make the most of current CD rates, consider implementing a CD laddering strategy, which involves investing in multiple CDs with varying terms to maximize returns and maintain liquidity.
