Best CD Rates in the U.S. (2025): Compare 6-, 12-, & 18-Month Yields
Best CD Rates 2025: Compare 6-Month, 12-Month & 18-Month Yields
Meta Description: Discover the best CD rates in the U.S. for 2025 — compare 6-, 12-, and 18-month yields, understand FDIC insurance coverage, and explore how to build a smart high-yield savings strategy.
1️⃣ Introduction
In 2025, U.S. savers are finding renewed interest in Certificates of Deposit (CDs) as interest rates remain elevated after several Federal Reserve rate hikes in 2023 and 2024. With inflation moderating and the Fed signaling possible rate cuts, locking in higher CD yields early in 2025 may help secure better returns for risk-averse investors.
According to Bankrate’s nationwide survey, average CD rates are holding strong between 4.5% and 5.4% APY. These yields significantly outperform standard savings accounts, making CDs a strategic choice for short-term savings and emergency funds.
2️⃣ 6-Month CD Rates Overview
The 6-month CD remains a top pick for those who want short-term returns with minimal commitment. It’s ideal for individuals who may need their cash within the year or expect rates to shift soon.
As of November 2025, top-performing online banks like Bread Savings and CIT Bank offer up to 5.35% APY on 6-month CDs, while traditional banks hover around 4.70% APY. Although shorter terms usually offer slightly lower yields, the flexibility of re-investing every six months provides an advantage during uncertain rate environments.
Financial experts recommend using 6-month CDs for “rate testing” — allowing savers to re-evaluate their strategy as economic conditions evolve throughout 2025.
3️⃣ 12-Month CD Rates Comparison
1-year CDs have historically been the sweet spot between flexibility and yield. They typically carry higher APYs than shorter terms, while still maintaining manageable liquidity. Average national rates currently sit around 4.90% APY, with online banks offering up to 5.35% APY.
| Bank / Credit Union | Term | APY (2025) | Minimum Deposit |
|---|---|---|---|
| Synchrony Bank | 12 months | 5.30% | $2,000 |
| Capital One | 12 months | 5.00% | $0 |
| Marcus by Goldman Sachs | 12 months | 4.90% | $500 |
| Discover Bank | 12 months | 5.10% | $2,500 |
Locking in a 12-month CD at the start of 2025 could be advantageous before any potential rate cuts by the Federal Reserve. Many investors also blend multiple terms to form a CD ladder—a method that helps balance yield and liquidity.
4️⃣ 18-Month CD Yields and Long-Term Strategy
The 18-month CD appeals to savers seeking more stability without committing to multi-year terms. These CDs generally provide 4.75%–5.10% APY, slightly below peak short-term rates but with the benefit of longer guaranteed earnings.
An 18-month CD can be particularly effective for individuals anticipating interest rate reductions in late 2025 or early 2026. By locking in now, investors can shield their savings from future rate drops.
Experts suggest combining 6-, 12-, and 18-month CDs into a tiered laddering strategy to maintain continuous liquidity while maximizing total returns over time.
5️⃣ FDIC Insurance and Safety
All CDs issued by FDIC-insured banks are covered up to $250,000 per depositor, per bank. This means your principal and interest are fully protected within those limits. For credit unions, the NCUA provides equivalent coverage through the National Credit Union Share Insurance Fund.
This government-backed protection makes CDs one of the most secure fixed-income investments available. When comparing institutions, always confirm that the bank or credit union is officially FDIC or NCUA insured.
FAQs
Q1. Are CD rates expected to rise in 2025?
A1. Most analysts predict CD rates may begin to stabilize or slightly decline by mid-2025 if the Federal Reserve implements modest rate cuts to support economic growth.
Q2. What CD term is best for short-term savings?
A2. A 6-month CD provides strong yields and flexible access, making it ideal for short-term goals or emergency savings.
Q3. Are online banks safe for CD deposits?
A3. Yes. Online banks that are FDIC-insured offer the same $250,000 protection per depositor as traditional institutions. They often provide higher yields due to lower operating costs.
Conclusion
In 2025, U.S. savers can take advantage of historically strong CD yields across 6-, 12-, and 18-month terms. Whether you’re seeking liquidity, consistency, or a balanced portfolio, today’s rates offer an opportunity to lock in attractive returns while maintaining federal insurance protection. Building a simple CD ladder can help ensure consistent growth and steady access to funds throughout the year.
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