In 2025, smart savers are looking for more than just a safe place to stash their money—they want solid returns without the risk of the stock market. That’s where CDs (Certificates of Deposit) come in. With CD rates climbing this year, now might be the best time to lock in an impressive APY and grow your savings securely.
In this guide, we’ll break down the best CD rates in July 2025, explain how CDs work, and help you choose the best term and institution based on your financial goals.
💸 What Are CD Rates?
A Certificate of Deposit is a time-bound deposit offered by banks and credit unions. You agree to keep your money locked for a certain term (e.g., 6 months, 1 year, 3 years), and in return, the bank pays you interest—known as the APY (Annual Percentage Yield).
The longer you keep your money in the CD, the higher your APY tends to be (although this can vary). Once the term ends (called maturity), you can withdraw your funds or roll them into a new CD.
🌟 Best CD Rates of July 2025 (Up to 4.60%)
| Term | APY | Min. Deposit |
|---|---|---|
| 6 months | 4.41% APY | $1,000 |
| 1 year | 4.21% APY | $1,000 |
| 15 months | 4.25% APY | $1,000 |
| 18 months | 4.20% APY | $5,000 |
| 2 years | 4.00% APY | $1,000 |
| 26 months | 3.15% APY | $10,000 |
| 3 years | 2.75% APY | $1,000 |
🔹 These rates are from Rising Bank – a trusted name in online banking offering flexible CD options.
🌊 CD Rate Trends in 2025
With the Fed tightening and inflation cooling, many banks are competing for deposits by offering higher CD rates. This is especially true for short- and mid-term CDs (6 months to 18 months). Experts suggest now is a good time to lock in a rate before potential declines in the second half of the year.
If you’re sitting on savings and don’t need liquidity for 6–18 months, a high-rate CD can help protect and grow your money without market volatility.
📊 Pros & Cons of CDs in 2025
Pros:
- ✅ Shorter terms earn top-notch interest rates.
- ✅ Some banks offer specialty CDs like bump-up and jumbo options.
- ✅ Low-risk investment compared to stocks or crypto.
- ✅ FDIC insured (up to $250,000).
Cons:
- ❌ Limited access to funds before maturity (early withdrawal penalties).
- ❌ Fewer attractive options for 2-3 year terms.
- ❌ Jumbo CDs may not always outperform regular CDs.
🧱 Who Should Consider a CD Right Now?
- Anyone with extra savings they won’t need for 6-18 months.
- People nearing retirement looking for stable returns.
- Parents saving for short-term goals (tuition, down payment).
- Investors looking to diversify beyond the stock market.
⏳ Short-Term vs Long-Term CDs: What to Choose?
If rates are peaking or might fall soon, a short-term CD (6-15 months) can be a smart move. It gives you flexibility to re-invest if rates rise or cash out sooner.
Long-term CDs (2-3 years) may lock you in at lower returns today, so unless you get a great rate or need fixed returns for budgeting, shorter may be better in mid-2025.
💬 FAQs About CD Rates in 2025
Q: Are CD rates going up or down in 2025?
A: So far, rates remain high, especially for short terms. However, some experts predict rate cuts by late 2025, so locking in now could be smart.
Q: Are online banks safe for CDs?
A: Yes, as long as they’re FDIC-insured, your money is protected up to $250,000.
Q: Can I withdraw early from a CD?
A: Yes, but you’ll pay a penalty (usually 3–6 months of interest). Only invest money you don’t need right away.
Q: How are CD returns taxed?
A: CD interest is taxed as ordinary income, even if you don’t withdraw it. The bank will send you a 1099-INT.
Q: Are jumbo CDs worth it?
A: Not always. Some banks offer higher rates for regular CDs than jumbo ones (as seen with Rising Bank’s 2-year options).
🌊 And here’s some extra info:
Best CD rates of July 2025 (Up to 4.60%)
Pros:
- The shorter-length terms earn top-notch rates.
- Specialty CDs are offered, including a two-year jumbo CD and bump-up CDs.
Cons:
- There aren’t any CD terms longer than three years.
- Yields on the two- and three-year CDs aren’t as competitive.
- The bank’s two-year jumbo CD isn’t competitive with its regular two-year CD.
