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Certificates of deposit (CDs) are a reliable way to lock in a fixed interest rate that often outperforms regular savings accounts. With guaranteed returns over a set period, ranging from a few months to several years, CDs are an excellent choice for risk-averse savers. As of March 2025, the best CD rates are above 4%, with top offers reaching 4.50% APY. In this guide, we’ll break down the best CD rates, explore top banks and credit unions, and provide actionable tips to help you maximize your savings.
Key Takeaways
- Top CD Rates: Up to 4.50% APY for terms as short as 3 months.
- Best Banks: Marcus by Goldman Sachs, Bread Savings, and LendingClub lead the pack.
- CD Laddering: A strategy to balance access to funds and high yields.
- Fed Impact: CD rates are expected to drop as the Federal Reserve lowers interest rates in 2024 and 2025.
- Alternatives: High-yield savings accounts and money market accounts offer flexibility but may have lower rates.
Best CD Rates for March 2025
Here are the top CD rates available as of March 2025:
| Bank/Credit Union | APY | Minimum Deposit | Term |
|---|---|---|---|
| Bask Bank | 4.50% | $1,000 | 3 months |
| NBKC | 4.50% | $1,000 | 7 months |
| Service Credit Union | 4.50% | $500 | 6 months |
| Bread Savings | 4.50% | $1,500 | 6 months |
| LendingClub | 4.50% | $2,500 | 10 months |
| Marcus by Goldman Sachs | 4.50% | $500 | 14 months |
Top Banks for CDs in March 2025
1. Marcus by Goldman Sachs
- NerdWallet Rating: 4.8
- APY Range: 3.75% – 4.50%
- Term Lengths: 6 months to 6 years
- Minimum Deposit: $500
- Special Features: Bump-up CDs and no-penalty CDs.
Insurascape’s Take: Marcus by Goldman Sachs offers a wide range of CD terms with competitive rates. Its no-penalty CD allows early withdrawals without fees, making it a flexible option for savers.
2. Bread Savings
- NerdWallet Rating: 4.8
- APY Range: 3.80% – 4.50%
- Term Lengths: 3 months to 5 years
- Minimum Deposit: $1,500
- Special Features: Consistently high rates across all terms.
Insurascape’s Take: Bread Savings is a top choice for savers looking for high yields, though its early withdrawal penalties are steeper than some competitors.
3. LendingClub
- NerdWallet Rating: 4.4
- APY Range: 4.00% – 4.50%
- Term Lengths: 10 months to 5 years
- Minimum Deposit: $2,500
- Special Features: Competitive rates for mid-term CDs.
Insurascape’s Take: LendingClub is ideal for savers who want a balance between term length and yield.
Recent News About CD Rates
The best CD rates in March 2025 are likely to see small drops or remain flat, following the Federal Reserve’s decision to keep its benchmark rate unchanged after its January meeting. Currently, the best CD rates hover around 4% APY for one-year terms and 3.50% APY for three- and five-year terms. However, as the Fed continues to cut rates in 2024 and 2025, CD rates are expected to decline. Savers are encouraged to lock in high rates now before they drop further.
What is a CD?
A certificate of deposit (CD) is a type of savings account that requires you to lock in your funds for a fixed period, ranging from a few months to several years, in exchange for a fixed interest rate. CDs are ideal for savers who don’t need immediate access to their funds and want to earn higher returns than traditional savings accounts.
How to Choose a CD
When selecting a CD, consider the following factors:
- Term Length: Choose a term that aligns with your financial goals. Shorter terms (3-12 months) offer flexibility, while longer terms (3-5 years) provide higher yields.
- APY: Look for the highest APY for your desired term length.
- Minimum Deposit: Ensure the CD’s minimum deposit requirement fits your budget.
- Early Withdrawal Penalties: Understand the penalties for withdrawing funds before the CD matures.
- CD Type: Consider specialty CDs like no-penalty CDs or bump-up CDs for added flexibility.
How Much Does a $10,000 CD Make in a Year?
The earnings from a CD depend on the APY, term length, and deposit amount. Here’s a breakdown of how much a $10,000 CD can earn:
| APY | Interest Earned in 1 Year | Interest Earned in 6 Months |
|---|---|---|
| 2.00% | $200 | $100 |
| 3.00% | $300 | $149 |
| 4.00% | $400 | $198 |
| 4.25% | $425 | $210 |
CD Laddering: A Smart Savings Strategy
CD laddering involves opening multiple CDs with different term lengths. This strategy allows you to take advantage of higher long-term rates while maintaining access to funds as shorter-term CDs mature. For example, you could open a 1-year, 2-year, and 3-year CD, reinvesting each as they mature.
Alternatives to CDs
If CDs don’t meet your needs, consider these alternatives:
- High-Yield Savings Accounts: Offer flexibility with comparable returns.
- Money Market Accounts: Provide check-writing privileges and higher yields.
- Bonds: Offer fixed returns but come with market risk.
Methodology
Insurascape evaluates CD rates from over 45 financial institutions monthly, focusing on competitive APYs, minimum deposit requirements, and customer experience. Our ratings are based on annual percentage yields, fees, digital experience, and more.
Frequently Asked Questions
1. What is the best CD rate for March 2025?
The best CD rates are around 4.50% APY for terms as short as 3 months.
2. Are CD rates expected to drop in 2025?
Yes, as the Federal Reserve continues to lower interest rates, CD rates are likely to decline.
3. Can I withdraw money from a CD before it matures?
Yes, but you’ll typically face an early withdrawal penalty, which can range from a few months to a year’s worth of interest.
Final Thoughts
CDs are a safe and reliable way to grow your savings, especially in a volatile market. By locking in high rates now, you can secure guaranteed returns for the future. Whether you’re saving for a short-term goal or building a long-term financial plan, CDs offer a low-risk option to maximize your earnings. For more personalized recommendations, stay updated with Insurascape