Best CD Rates for February 2025: Up to 4.65% APY

As of February 4, 2025, certificates of deposit (CDs) are still shining bright with attractive interest rates for anyone eager to enhance their savings. Let’s dive into a detailed exploration of the best CD rates available right now.

What are CDs?

A certificate of deposit (CD) is a type of bank account that requires you to commit your funds for a specific period—this could be as short as a few months or stretch to several years. In return, you enjoy a guaranteed interest rate that often blows traditional savings accounts or high-yield savings account rates out of the water.

Current CD Rates

Best Overall CD Rates

Check out some of the leading CD rates available this February 2025:

Bask Bank: Featuring CDs from 3 months to 2 years, offering APYs ranging from 3.75% to 4.65%. Minimum deposit starts at $1,000[4].
Popular Direct: Provides CDs with terms spanning 3 months to 5 years, boasting APYs up to 4.30%. The minimum deposit sits at $10,000[4].
Marcus by Goldman Sachs: High-yield CDs available with terms from 6 months to 5 years, offering up to 4.25% APY for a 1-year term. The minimum deposit is just $500[2].

Promotional CD Rates

For those keeping an eye out for promotional offers, these CDs tend to feature higher rates but may attach specific conditions:

NASA Federal Credit Union: A 9-month certificate with a tempting 4.54% APY and a 15-month certificate at 4.34% APY[2].
Synchrony Bank: Offering a 13-month CD with a solid 4.35% APY and a 16-month CD at 4.15% APY[2].
LendingClub Bank: Showcases a 10-month CD with an appealing 4.35% APY[2].

No-Penalty CD Rates

If you’re looking for options that allow early withdrawals without penalties, no-penalty CDs might be your best bet, even though they generally offer lower rates:

Ally Bank: An 11-month no-penalty CD with a competitive 3.75% APY and no minimum deposit required[2].
CIT Bank: Offers an 11-month no-penalty CD sporting a 3.50% APY, with a $1,000 minimum deposit[2].
Marcus by Goldman Sachs: Features a 13-month no-penalty CD with a 4.00% APY and a $500 minimum deposit[2].

How to Choose the Best CD

When you’re on the hunt for the best CD, keep these key factors in mind:

Term Length

Short-Term CDs: Generally offer more competitive rates for periods such as 6 months to 1 year. For example, Bask Bank boasts up to 4.65% APY for a 2-year term[4].
Long-Term CDs: May provide slightly lower rates, but they offer peace of mind over extended time spans. For instance, Popular Direct lists up to 4.10% APY for a 5-year term[4].

Minimum Deposit

Some banks may demand hefty minimum deposits, like the $10,000 at Popular Direct, while others, such as Marcus by Goldman Sachs, require just $500[2][4].

Flexibility

If you need the leeway to access your money before the term wraps up, consider no-penalty CDs. Do keep in mind, though, that these options typically yield lower rates compared to more traditional choices[2].

Impact of Federal Reserve Rates

Have you been keeping tabs on the Federal Reserve’s benchmark rate? Well, it has a sizable impact on CD rates! Throughout the latter half of 2024, the Fed dropped its benchmark rate on multiple occasions, which led banks and credit unions to follow suit with their CD offerings. As this trend is likely to persist, now's the perfect moment to secure those high CD rates while they’re still within reach[2].

Additional Types of CDs

IRA CDs

These specialized CDs cater specifically to retirement savings, merging the tax perks of an IRA with the fixed rate benefits of a CD. They suit risk-averse savers or anyone approaching retirement age perfectly[2].

Jumbo CDs

If you have a substantial sum to invest, look out for Jumbo CDs which usually require minimum deposits of $100,000. While they might not always deliver the highest rates, they can be smart for individuals with significant savings[2].

Conclusion

In a nutshell, CDs are proving to be a strong choice for savers eager to earn better interest than what traditional savings accounts can offer. With rates soaring up to 4.65% APY, it’s essential to do your homework—compare rates, weigh term lengths, and evaluate flexibility and minimum deposit requirements before taking the plunge.

For a deeper dive into the latest rates and detailed information, check out: