High CD Rates Available: Shop Around and Consider Online Banks

As of August 25, 2025, the highest CD rate is 4.4% APY offered by Marcus by Goldman Sachs on its 6-month CD. Online banks and credit unions generally offer more competitive rates compared to traditional brick-and-mortar banks. The national average CD rate is 1.77% for a 1-year term. To find the best CD rates, shop around, consider online banks, check minimum deposit requirements, and review account terms and conditions.

As of August 25, 2025, the highest Certificate of Deposit (CD) rate is 4.4% APY, offered by Marcus by Goldman Sachs on its 6-month CD [2]. This rate significantly exceeds the national average of 1.77% for a 1-year term, presenting a rare opportunity for savers to secure high yields in a low-inflation environment.

Fed's Dovish Pivot and Rate Cuts

The Federal Reserve (Fed) is projected to implement a series of rate cuts in the coming months, which could impact CD yields. As of August 2025, the Fed is expected to reduce the federal funds rate by 25 basis points in September 2025, followed by three more cuts by early 2026, bringing the rate down to 3.25–3.5% [1]. This dovish shift, driven by a cooling labor market and inflation near 3%, could lead to declining CD returns.

Best High-Yield CD Offers

Several institutions stand out for their competitive rates and flexibility:

- Morgan Stanley Private Bank: Offers a 4.45% APY on a 6-month CD with terms ranging from 6 months to 5 years and a $0 minimum deposit [1].
- Marcus by Goldman Sachs: Provides a 4.40% APY on a 6-month CD with terms up to 6 years and a $500 minimum deposit, along with no-penalty and bump-up CD options [1].
- Limelight Bank: Offers a 4.45% APY on a 6-month CD with terms up to 2 years and a $1,000 minimum deposit [1].
- Popular Direct: Provides a 4.30% APY on a 3-month CD with terms up to 5 years and a $10,000 minimum deposit [1].

Strategic Considerations for Savers

To maximize returns, savers should consider the following strategies:

- Laddering: Build a CD ladder with staggered terms to balance liquidity and high yields.
- Penalty Awareness: Avoid early withdrawal penalties by aligning CD terms with your financial goals.
- Minimum Deposit Trade-offs: Weigh the accessibility of high-rate CDs against their yield.

Risks to Consider

While high-yield CDs offer attractive returns, savers should also consider potential risks, such as:

- Inflation: While current inflation is manageable, tariffs and supply chain shifts could temporarily push prices higher.
- Liquidity Needs: CDs are illiquid. Ensure you have emergency funds before locking in capital.

Final Call to Action

Given the Fed's projected rate cuts, savers should act now to lock in today's high APYs, particularly for short-term CDs. Institutions like Morgan Stanley and Marcus offer the best combination of yield and flexibility. Act before September 2025 to secure the highest returns possible.

References

[1] https://www.ainvest.com/news/high-yield-cds-august-2025-locking-rates-fed-dovish-shift-2508/
[2] https://finance.yahoo.com/personal-finance/banking/article/best-cd-rates-today-monday-august-25-2025-100007643.html