CD Rates Today: August 12, 2025 - APYs Up to 5.00%

Understanding CD Rates and How to Maximize Your Savings

Certificates of deposit (CDs) are a popular choice for individuals looking to grow their savings with a relatively low risk. Unlike regular savings accounts, CDs typically offer higher interest rates in exchange for the commitment to leave your money with the financial institution for a set period. To get the best returns, it's essential to understand how CD rates work and which options align with your financial goals.

Currently, short-term CDs are offering some of the most competitive rates. According to recent data, the average rate on a 12-month CD is around 1.63%, but top high-yield CDs can provide significantly better returns. For example, some institutions are offering rates as high as 4.63% APY. This makes short-term CDs an attractive option for those who want to earn more without locking away their funds for too long. Additionally, six-month CDs and promotional CDs also provide competitive rates, depending on the institution.

Top CD Rates Today

If you're looking for the highest yields available, there are several options to consider. National banks like My eBanc currently offer a 4.45% APY on a nine-month CD with a $5,000 minimum deposit. On the other hand, local credit unions such as Daniels-Sheridan Federal Credit Union provide even better rates, with a 5.11% APY on a 12-month CD requiring only a $500 minimum deposit.

Here are some of the best CD rates available today across different terms:

• Sheridan Community Federal Credit Union: 5.00% APY on a three-month CD with a $500 minimum.
• Evolve Federal Credit Union: 4.59% APY on a six-month CD with a $500 minimum.
• Abound Credit Union: 4.50% APY on a 10-month CD with a $500 minimum.
• Kinetic Credit Union: 4.50% APY on a 12-month CD with a $500 minimum.
• INOVA Federal Credit Union: 4.25% APY on a 14-month CD with a $200 minimum.
• United Fidelity Bank, fsb: 4.45% APY on an 18-month CD with a $1,000 minimum.
• Park State Bank & Trust: 4.59% APY on a 24-month CD with a $500 minimum.
• Geauga Credit Union: 4.58% APY on a 36-month CD with a $500 minimum.
• Lewis Clark Credit Union: 4.39% APY on a 48-month CD with no minimum requirement.
• State Bank of Newburg: 4.59% APY on a 60-month CD with a $10,000 minimum.

Historical Trends and Factors Influencing CD Rates

Historically, long-term CDs have offered higher yields compared to short-term ones. However, in recent months, short-term CDs like six-month and 12-month options have seen higher average yields. This shift is partly due to changes in the federal-funds rate, which plays a significant role in determining CD rates.

The Federal Reserve’s decision to keep the benchmark rate steady in July 2025 has contributed to relatively stable CD interest rates. However, the possibility of future rate cuts remains a concern for some investors. If the Fed lowers rates, institutions may adjust their CD offerings accordingly. For example, if a bank anticipates lower rates, it might offer higher yields on short-term CDs to attract deposits before the rate decline.

Another factor influencing CD rates is the business strategy of financial institutions. Banks and credit unions must balance the interest they pay to depositors with the interest they earn from loans. A higher yield on CDs can help attract more deposits, but it must be sustainable within the institution’s overall profitability model.

Choosing the Right CD for Your Goals

When selecting a CD, it's important to consider your financial needs and goals. Here are a few key factors to keep in mind:

• When do you need the money? CDs come with penalties for early withdrawal, so it's crucial to choose a term that matches your timeline. If you need access to your funds soon, a short-term CD may be more suitable. If you’re saving for a longer-term goal, a long-term CD could offer a better return.

• How much are you willing to commit? CDs vary in minimum deposit requirements, and some institutions offer jumbo CDs with higher rates for larger deposits. It's important to assess how much you can comfortably allocate to a CD and whether a CD laddering strategy might be beneficial for managing liquidity and returns.

• What are future CD trends likely to be? Experts predict that CD rates may fluctuate based on economic conditions. If you believe rates will fall, locking in a higher rate now could be advantageous. Conversely, if you expect rates to rise, a short-term CD may allow you to take advantage of future increases.

By carefully evaluating these factors and staying informed about current CD rates, you can make smarter decisions to grow your savings effectively.