National Average vs. Top CD Rates by Term
The national average CD rate is dragged down by traditional banks paying well below market rates. Online banks consistently offer 2-4x the national average. The gap is especially wide in shorter terms where big banks barely move the needle.
CD national average vs. top rates — June 2025
| CD Term | National Avg APY | Top Online APY | Difference | $20K Interest Gap |
|---|---|---|---|---|
| 3-month | 1.20% | 5.00% | 3.80% | $190 extra |
| 6-month | 1.60% | 5.15% | 3.55% | $355 extra |
| 1-year | 1.80% | 5.10% | 3.30% | $660 extra |
| 2-year | 1.50% | 4.75% | 3.25% | $1,300 extra |
| 5-year | 1.40% | 4.40% | 3.00% | $7,500+ extra |
Which CD Term Offers the Best Value Right Now?
In June 2025 the 6-month CD offers particularly compelling value at 5.15% — slightly above the 1-year at 5.10% and well above the 2-year at 4.75%. This inverted yield curve (shorter rates higher than longer) suggests the market expects rates to fall. Shorter terms capture today’s top rates without locking in too long.
When short-term CD rates exceed long-term rates (inverted yield curve) consider laddering into 3-6-12 month CDs rather than 3-5 year terms. You earn the best available rates and stay flexible to reinvest as the rate environment evolves.
Top CD rates by bank and term — June 2025
| Bank | 6-Month APY | 1-Year APY | 2-Year APY | Min Deposit |
|---|---|---|---|---|
| Marcus Goldman Sachs | 5.00% | 5.10% | 4.75% | $500 |
| Ally Bank | 4.95% | 5.00% | 4.60% | $0 |
| American Express | 4.90% | 5.00% | 4.55% | $0 |
| Synchrony Bank | 5.05% | 5.05% | 4.50% | $0 |
| Discover Bank | 4.80% | 4.90% | 4.50% | $2,500 |
How CD Rates Are Expected to Move
CD rates follow Fed policy. If the Fed cuts rates by another 1-2% over 2025-2026 as many economists project, new CD rates will fall accordingly. The implication: locking in today’s 5%+ rates with a 1-2 year CD could prove smart if you believe rates will decline.
- Lock longer if you believe rates will fall significantly over the next 1-2 years
- Stay shorter if you believe rates will rise or remain stable
- CD ladder splits the difference — capture top rates with diversified maturities
- Online banks tend to hold CD rates competitive longer than traditional banks
Compare CD Returns Across All Terms
Enter your deposit amount to see earnings at 3-month through 5-year terms side by side.