The Federal Reserve is holding interest rates steady for now, but many experts still expect cuts later this year. That means today's CD rates may be among the highest we'll see for a while.

If you've been thinking about opening a certificate of deposit, now could be a smart time to lock in a strong rate for the next six months or longer.

Some of the best CDs available right now are offering APYs up to 4.55%, with minimum deposits starting as low as $500.

Here's a look at today's top CD options.

The best CD rates today, May 21, are above 4.00%. Top offers include:

• United Fidelity Bank, 6 months: 4.55% APY
• United Fidelity Bank, 10 months: 4.50% APY
• OMB, 9 months: 4.50% APY
• Presidential Bank, 7 months: 4.50% APY
• ableBanking, 6 months: 4.50% APY

Special pick: Now could be one of the last chances to lock in a yield this high before rates start to fall. LendingClub's 14-month CD currently offers 4.10% APY with just a $500 minimum deposit. Check out LendingClub's 14-month CD here.Data source: Issuing banks. Rates are accurate as of May 20, 2025.

Best CD Rates at Top Banks in May 2025

Should you open a CD?

Banks largely expect the Federal Reserve to lower rates by year's end, so some have started reducing their top CD rates. Now is a great time to secure a high APY while they're still available, before potential rate cuts make them unheard of.

CDs offer peace of mind with FDIC insurance, which protects up to $250,000 per person, per bank. They are low-risk and provide steady returns. However, if you're investing for a longer period or can handle more risk, the stock market might offer greater growth potential.

How a $10,000 CD could earn you $480

Your potential return on a CD depends on three factors: the APY, your deposit amount, and the term length.

For example, a $10,000 deposit into a 14-month CD with a 4.10% APY would earn roughly $480 in interest by the time it matures -- with virtually no risk of losing your principal.

Compare that to a traditional savings account, where rates are often much lower and can fluctuate over time. Locking in a top CD rate today, like LendingClub's 14-month CD, can help you maximize your returns before rates drop. See LendingClub's 14-month CD details here.

How to open a certificate of deposit

When you're ready, you can open a CD in just a few simple steps:

1. Shop around to find the highest APY for the term you want.
2. Read the fine print and make sure you can meet the minimum deposit, if there is one.
3. Apply for a new account on the bank's website or mobile app, or over the phone. You'll likely be approved and ready to invest in minutes.
4. Link an existing bank account to transfer funds to a new CD.
5. Make note of your maturity date. When your CD matures, you'll have to decide whether to withdraw your cash or reinvest in a new CD.

Remember, each CD allows only one deposit. Plan your amount wisely. When you're ready, click here to explore the best CD rates and open a high-yield CD today.

CDs vs. high-yield savings accounts: Earn a top-tier APY without locking up your cash

If you want to earn a high APY with more flexibility and less commitment, then look into a high-yield savings account.

• You can deposit and withdraw money whenever you want.
• You can quickly transfer money to other accounts.
• You can simply deposit cash and leave it, while CDs require some work and decision-making when they mature.

Savings account rates are variable and can change at any time. However, high-yield savings accounts currently have APYs that rival the best CDs.

One standout right now is SoFi Checking and Savings (Member FDIC). This top-rated account offers up to 3.80% annual percentage yield (APY) on savings with qualifying direct deposits. Even better: New customers can earn up to a $300 bonus with qualifying direct deposits! It's an easy way to boost your savings without locking up your cash. Click here to learn more.

• Sources

  • https://www.unitedfidelity.com/high-yield-certificates-of-deposit/
  • https://www.ombbank.com/personal-banking/personal-savings/certificates-of-deposit/9-month-cd-special
  • https://www.presidential.com/personal/banking/cds
  • https://www.ablebanking.com/cds

FAQs

• What's the biggest downside of a CD?

  The biggest downside of a certificate of deposit is the lack of liquidity. When you invest in a CD, your money is locked in for a fixed term, and withdrawing it early can result in loss of interest. This means you have less flexibility to access your funds if you need them before the CD matures.

• What is a good CD rate in May 2025?

  CD rates can be found up to 4.55% today. The highest CD rates are on short-term CDs. Right now, that includes CDs with terms of 10 months or less. Shop around and compare rates to find the most competitive rate for the term you want.

• Could CD rates go higher in 2025?

  Experts currently expect the Federal Reserve to cut rates later this year, which could result in lower CD rates. However, if inflation climbs and the Fed raises rates instead, CD rates could increase. Rate movements aren't certain, and timing is unclear.