Top CD Rates for June 2025: Earn Up to 4.4% APY

As of June 21, 2025, the highest CD rate is 4.4% APY offered by Western Alliance Bank on its 3-month CD with a $1 minimum opening deposit. Online banks and credit unions offer top CD rates, and interest rates vary widely across financial institutions. The amount of interest earned depends on the annual percentage rate (APY) and the principal deposit amount. Various types of CDs, such as bump-up CDs, offer different benefits and flexibility.

As of June 21, 2025, the highest certificate of deposit (CD) rate is 4.4% APY offered by Western Alliance Bank on its 3-month CD, with a $1 minimum opening deposit [1]. This rate is significantly higher than the national average, highlighting the potential for substantial returns on investments. The Federal Reserve's recent interest rate cuts have led to a decline in CD rates, but they remain high by historical standards.

Online banks and credit unions are currently offering top CD rates. For instance, Newtek Bank provides a 4.60% APY on a 9-month term, extending your rate lock into 2026 [3]. Rising Bank offers a 4.51% APY on a 6-month term, and PonceBankDirect offers a 4.50% APY on a 3-month term [3]. These rates are competitive and reflect the current economic climate.

The annual percentage yield (APY) and the principal deposit amount significantly impact the interest earned from a CD. APY takes into account both the interest rate and the frequency of compounding, providing a more accurate representation of the total return. It is essential to compare APYs when evaluating different CD options.

Various types of CDs offer different benefits and flexibility. Bump-up CDs, for example, allow you to increase your interest rate once during the term, providing an opportunity to capitalize on higher rates without the risk of locking in a low rate for the entire term. However, early withdrawal penalties may apply if you choose to withdraw your funds before the maturity date.

To find the best CD rates, it is crucial to shop around and compare offers from different financial institutions. Online banks, in particular, often have lower overhead costs, enabling them to offer higher interest rates on CDs [2]. Additionally, it is important to consider the minimum deposit requirements and account terms, including early withdrawal penalties and auto-renewal policies.

In conclusion, while CD rates have declined from their peak, they remain high by historical standards. Online banks and credit unions are currently offering top CD rates, providing investors with the opportunity to earn substantial returns on their investments. By understanding the factors that impact CD rates and the various types of CDs available, investors can make informed decisions about their savings.

References:
[1] https://finance.yahoo.com/personal-finance/banking/article/best-cd-rates-today-wednesday-june-18-2025-100046123.html
[2] https://finance.yahoo.com/personal-finance/banking/article/best-cd-rates-today-monday-june-16-2025-100044208.html
[3] https://www.investopedia.com/top-cd-rates-today-june-20-2025-earn-4-50-or-more-on-terms-ranging-from-3-to-21-months-11758568