Best CD Rates in April 2025: How to Lock in Up to 4.70% APY for Safe, Steady Returns

Stashing your savings in a certificate of deposit (CD) can be a smart way to earn more than a regular savings account—especially right now. With the Federal Reserve holding rates steady and signs pointing to possible rate cuts, this spring brings some of the highest CD yields in over a decade. Let’s break down the top rates, how to choose the right term, and steps to keep your money growing—and protected—well into next year.

CDs: Why High Rates Make Now the Time to Act

CDs work like a locked-box savings account: you deposit a set amount for a fixed period (the ‘term’), and in return, your bank pays you a guaranteed interest rate. This rate is called the Annual Percentage Yield—or APY—which includes the effect of compounding (earning interest on interest). Right now, many top banks and credit unions are offering APYs of up to 4.70% or even 5.10% for longer terms. That’s much higher than the national average—and higher than most checking or savings accounts.

For example, as of May 2025, you can find the following competitive rates:

• Marcus by Goldman Sachs: 1-Year CD at 5.10% APY, 5-Year CD at 4.75% APY (minimum $500)
• Ally Bank: 1-Year CD at 4.90% APY, no minimum deposit
• CIT Bank: 1-Year CD at 5.00% APY, 5-Year CD at 4.60% APY (minimum $1,000)
• Barclays US: 1-Year CD at 5.00% APY, 5-Year CD at 4.70% APY, no minimum deposit
• Capital One: 1-Year CD at 4.80% APY, 5-Year CD at 4.50% APY, no minimum deposit

These rates are made possible by the Federal Reserve’s decision to keep its benchmark rate between 4.25% and 4.5%. When the Fed holds rates steady at this level, banks often compete with attractive CD offers to win customers’ deposits.

“When you lock in a CD now, you’re getting a rate that may soon disappear if the Fed lowers interest rates this summer.”

So, locking in a longer-term CD right now can help you hang onto today’s great rates—even if other savings products drop.

Next steps: Compare online banks and credit unions for the best APY, and make sure any bank you consider is FDIC- or NCUA-insured. Read the fine print on minimum deposits, and check for early withdrawal penalties.

Choosing the Right CD: Terms, Penalties, and Other Fine Print

Not all CDs work the same way, so it’s important to choose the right one for your needs. Term length is the first thing to look at—a shorter-term CD (like 6 months to 1 year) lets you access your cash sooner, while a longer-term CD (like 3 or 5 years) typically gets you a higher APY.

Keep in mind: Banks almost always charge a penalty if you withdraw your money before the CD matures. This penalty might cost you several months of interest, or in some cases, even eat into your principal if you pull out early. Read the disclosure—every CD details the exact penalty.

“Early withdrawal penalties can wipe out much of the benefit of a high APY, so plan to leave your CD money untouched for the full term,” says financial educator Alice Turner.

Minimum deposits are another factor. Some banks require as little as $0 to start, while others ask for $500 or $1,000. It’s best to only tie up cash you can live without for the full CD term.

Also, don’t forget about account insurance. When you open a CD at a bank insured by the Federal Deposit Insurance Corporation (FDIC) or a credit union covered by the National Credit Union Administration (NCUA), your money is protected up to $250,000 per depositor, per institution.

One way to boost flexibility is to “ladder” your CDs. A CD ladder is when you open several CDs of different terms (for example, a 1-year, 2-year, and 3-year CD), so you have money coming available at regular intervals. This means you won’t have to wait long if you need funds or want to reinvest at a higher rate later.

On the other hand, if you’re worried you might need your savings unexpectedly, you can consider no-penalty CDs or high-yield savings accounts (which offer easy access but usually come with variable rates that could go down).

Next steps: Decide how long you’re comfortable locking up your cash, then compare early withdrawal penalties and minimum deposits across banks. If you’re new to CDs, try a small amount in a short-term CD to see how you like it.

CDs vs. High-Yield Savings: Smart Strategies for 2025

So, should you lock money into a CD, try a no-penalty CD, or stick with a high-yield savings account? Let’s weigh the pros and cons of each and see which strategy might fit your goals in 2025.

CDs: Locking in a multi-year CD right now lets you preserve today’s high rates even if banks start lowering APYs. The guaranteed return and federal insurance mean your money is safe and growing, even if markets get choppy. But you must be sure you won’t need those funds for the whole term—otherwise, you could face steep early withdrawal penalties.

No-Penalty CDs: These give you more wiggle room. You’ll get a fixed rate, and you can withdraw money early without a fee. The tradeoff? No-penalty CDs may pay slightly lower APYs than regular CDs, but still often out-earn savings accounts—making them a solid pick if you want some flexibility.

“No-penalty CDs are like training wheels for savers who want good yields but might need to break the lock if life throws a curveball,” explains savings expert Jenna Wright.

High-Yield Savings Accounts: These are perfect if you want fast access to your money—some offer rates above 4% these days, but those rates are variable, not guaranteed, and could drop quickly if the Fed cuts interest rates. If you might need your money sooner, or want to add to your savings as you go, high-yield savings might be the way to go.

When it comes to safety, all three options are insured up to $250,000 if your bank is FDIC- or NCUA-insured. Always check that your financial institution is covered before depositing large sums.

If you have more than $250,000 to put away, consider splitting deposits across more than one bank—keeping each account under its insured limit.

Think of your CD strategy like a “financial time capsule.” Once you lock up those funds, they’ll quietly earn for you—no market watching or worrying required.

Next steps: If maximum yield is your goal and you have cash you won’t need soon, consider locking in a long-term CD now while rates are hot. For more flexibility, try a no-penalty CD or keep funds in a high-yield savings. Mix and match for the best of both worlds!