By 🔝 Why CDs Remain an Attractive Savings Option
Certificates of Deposit (CDs) continue to be one of the safest ways to grow savings. While the national average for a 12-month CD is around 1.75%, many high-yield CDs currently offer APYs exceeding 4%, making them more lucrative than standard savings accounts. depositaccounts.com+9kiplinger.com+9depositaccounts.com+9
📈 Top CD Rates by Term – July 2025
Here are today’s best CD yields, with institutions offering strong APYs and manageable minimum deposits:
- 6-Month CD: Up to 4.75% APY at Indiana University Credit Union (min. deposit: $2,000) nerdwallet.com+9kiplinger.com+9investopedia.com+9depositaccounts.com+2kiplinger.com+2bankrate.com+2
- 9-Month CD: Northern Bank Direct offers 4.45% APY (min. deposit: $500)
- 10-Month CD: Abound Credit Union provides 4.50% APY (min. deposit: $500) depositaccounts.com+15kiplinger.com+15investopedia.com+15
- 12-Month CD: Elements Financial offers 4.66% APY (min. deposit: $1,000)
- 14-Month CD: LendingClub Bank offers 4.25% APY, typically with no minimum deposit investopedia.com
- 18-Month CD: USALLIANCE Financial offers 4.45% APY (min. deposit: $500) fortune.com+15kiplinger.com+15bankrate.com+15
- 24-Month CD: Kinetic Credit Union offers 4.50% APY (min. deposit: $500) investopedia.com+1kiplinger.com+1
- 36-Month CD: Tulare County Federal Credit Union offers 4.34% APY (min. deposit: $1,000) kiplinger.com+2depositaccounts.com+2kiplinger.com+2
- 48-Month CD: Metro Credit Union offers 4.40% APY, sometimes with no minimum balance
- 60-Month CD: Keys Federal Credit Union offers 4.50% APY (min. deposit: $500)
📊 Significance of These Rates
Short-term CDs (6–14 months) currently yield up to 4.75%, surpassing long-term options thanks to market dynamics. It’s an ideal time to lock in attractive short-term returns before potential rate changes.
⚙️ What Influences These Rates?
- The Federal Reserve held interest rates steady in June 2025, which has kept CD returns stable.
- Banks balance deposit rates with their lending rates. To attract more deposits, some are offering competitive CD yields.
🧩 Choosing the Right CD for Your Goals
When selecting a CD, consider:
- Term length — avoid locking money away if you may need it soon.
- Minimum deposit — many high-yield options start around $500 to $1,000.
- Withdrawal penalties — these vary and can erode interest gains. investopedia.com+12kiplinger.com+12investopedia.com+12depositaccounts.com+12kiplinger.com+12kiplinger.com+12
- Rate expectations — if rates fall, locking into a high yield makes sense; if you expect rises, shorter terms might allow you to reinvest at better rates later.
✅ Summary Table: Best CD Rates Today
| Term Length | Best APY | Minimum Deposit |
|---|---|---|
| 6 Months | 4.75% | $2,000 |
| 9–24 Months | 4.45–4.66% | ~$500–$1,000 |
| 36–60 Months | 4.34–4.50% | $500–$1,000 |
📌 Final Takeaway
CDs remain a low-risk, consistent yield option for savers looking to build interest income. With mid-year rates hovering in the 4%–4.75% APY range, today is an excellent time to consider CDs—especially if you want predictable returns and FDIC/NCUA insurance.
