Best CD Rates for June 2025: Online Banks Offer Up to 4.2% APY

As of June 12, 2025, CD rates are relatively high compared to historical averages, with the highest rate at 4.4% APY from Western Alliance Bank on its 3-month CD. The Federal Reserve's recent rate cuts are expected to continue, potentially impacting CD rates. To find the best CD rates, research and compare rates online, consider the term length, minimum opening deposit, and fees, and get your documents ready before opening a CD account.

As of June 12, 2025, certificate of deposit (CD) rates are relatively high compared to historical averages. The highest rate, at 4.4% APY, is offered by Western Alliance Bank on its 3-month CD [2]. This trend is influenced by recent Federal Reserve rate cuts, which are expected to continue, potentially impacting CD rates in the future.

The Federal Reserve has lowered the federal funds rate several times in 2024, which has led to a decrease in CD rates. However, the recent rate cuts have not significantly impacted the highest CD rates, which remain at historically high levels. For instance, the one-year CD rate from Newtek Bank is 4.60% APY, and the five-year CD rate from Lafayette Federal Credit Union is 4.28% APY [2].

To find the best CD rates, investors should research and compare rates online. It is essential to consider the term length, minimum opening deposit, and fees when choosing a CD. Additionally, savers should have their documents ready before opening a CD account to streamline the process.

The Federal Reserve's rate cuts in 2024 have led to a decrease in CD rates, but the highest rates remain at historically high levels. As the Federal Reserve continues to lower the federal funds rate, CD rates are expected to decrease further. However, investors should still consider CD accounts as a safe investment option, especially for those with short-term savings goals.

References:
[1] https://www.bankrate.com/banking/cds/current-cd-interest-rates/
[2] https://www.investopedia.com/top-cd-rates-today-june-11-2025-savers-now-have-18-chances-to-lock-in-4-50-or-higher-11752896