Top CD Rates for August 2025: Earn Up to 5.5% APY with Competitive Offers

As of August 7, 2025, Gainbridge offers a 5.5% APY on its 5-year CD with a $1000 minimum opening deposit. Several online banks provide competitive rates of 4% APY and up. CD rates have been declining since the Federal Reserve began cutting its target rate in 2024. Now is a good time to lock in today's best rates, as the Fed projects two more rate cuts in 2025. To open a CD, research competitive rates, choose an account that meets your needs, and follow the financial institution's process for opening an account.

As of August 7, 2025, Gainbridge offers a competitive 5.5% APY on its 5-year CD with a $1,000 minimum opening deposit. This rate is particularly attractive given the recent decline in CD rates following the Federal Reserve's interest rate cuts in 2024. The Fed projects two more rate cuts in 2025, making now an opportune time to lock in high-yield certificates of deposit (CDs).

Several online banks and credit unions offer competitive 5-year CD rates. According to NerdWallet, as of June 2025, the best 5-year CD rates are above 3.50% APY [1]. Some notable institutions include:

- Bread Savings®: Offers a 4.00% APY with a $1,500 minimum deposit.
- Alliant Credit Union: Provides a 3.65% APY with a $1,000 minimum deposit.
- Synchrony Bank: Has a 4.15% APY with no minimum deposit.
- Marcus by Goldman Sachs: Offers a 3.75% APY with a $500 minimum deposit.

These rates are significantly higher than the national average of 1.34% APY [1]. Despite the recent decline, five-year CDs still offer the advantage of longer periods to compound interest, potentially resulting in higher returns than shorter-term CDs.

To take advantage of these rates, investors should:

1. Research Competitive Rates: Compare rates from various financial institutions.
2. Choose an Account: Select an account that meets your specific needs and financial goals.
3. Follow Opening Procedures: Follow the financial institution's process for opening a CD account.

Given the projected rate cuts, it is advisable to lock in today's high-yield rates before they potentially decrease further. This strategy can help individuals secure a favorable return on their investments while mitigating the impact of interest rate fluctuations.

References:
[1] https://www.nerdwallet.com/best/banking/5-year-cd-rates