Some of the top CDs are paying well over 4.00% APY right now — a rare treat if you’ve been stuck earning pennies in a basic savings account.
But with the Federal Reserve hinting at rate cuts later this year, you might be wondering: Should you lock in today’s high rates? Or is it smarter to keep your cash flexible?
Let’s break down the latest CD rates, a smart strategy for investing in CDs, and how high-yield savings accounts (HYSAs) stack up today.
Best short-term CD rates in May 2025
Right now, short-term CDs are offering higher yields than their longer-term counterparts.
Our Picks for the Best High-Yield Savings Accounts of 2025
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Barclays Tiered Savings Member FDIC. APY See Terms
Rate info Circle with letter I in it.
Min. to earn $0 Open Account for Barclays Tiered Savings On Barclays’
Member FDIC.
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See Terms
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$0 |
Open Account for Barclays Tiered Savings On Barclays’ |
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SoFi Checking and Savings Member FDIC. APY up to 3.80%
Rate info Circle with letter I in it.
Min. to earn $0 Open Account for SoFi Checking and Savings On SoFi’s
Member FDIC.
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up to 3.80%
Rate info Circle with letter I in it.
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$0 |
Open Account for SoFi Checking and Savings On SoFi’s |
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Capital One 360 Performance Savings Member FDIC. APY 3.60%
Rate info Circle with letter I in it.
Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One’s
Member FDIC.
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3.60%
Rate info Circle with letter I in it.
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$0 |
Open Account for Capital One 360 Performance Savings On Capital One’s |
Here’s how the top shorter-term CD rates stack up as of May 2025:
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Term Length |
Top CD Rate (May 2025) |
|---|---|
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6 months |
4.55% |
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12 months |
4.30% |
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14 months |
4.40% |
Data source: Issuer websites.
If the Fed lowers rates soon, we’ll likely see these rates drop quickly. So if you’ve got cash you don’t need for the rest of 2025, it might make sense to lock in a great rate while you can.
Explore all the top CDs of May 2025 to see the latest high-rate options before they disappear.
A CD ladder can give you more flexibility
If you’re worried about locking up cash for too long, CD laddering can be a good strategy.
It works like this:
- Start by splitting your money into equal parts. For example, you might split $20,000 into four lots of $5,000.
- Next, open several CDs with staggered terms. For example, one for 6 months, one for 12 months, one for 18 months, and another for 24 months. Put $5,000 into each.
- As each CD matures, you can either cash it out if you need the money, or roll your funds into a new long-term CD to keep the ladder going.
Laddering allows you to lock in today’s great rates, but gives you regular chances to change your strategy (or lock in higher rates if they come available).
If you’re building a ladder, short-term CDs are your best building blocks right now thanks to their higher APYs.
High-yield savings accounts are great too
If locking up your money makes you nervous, a high-yield savings account might be a better home for your cash.
Right now, the best online HYSAs are paying around 4.00%, which is only slightly lower than what you can earn with short-term CDs.
The main downside is: HYSA rates are variable. If the Fed cuts rates, your savings rate will follow suit, unlike your CD rate that’s locked in.
Personally, I keep about $25,000 in an HYSA. For me, it’s worth a little less yield to know I can access my cash instantly if something unexpected comes up.
Don’t miss today’s high rates
CDs are absolutely still worth considering in May 2025 — but only if they fit your savings timeline. If you can afford to lock your money up for between six and 18 months, CDs paying over 4.00% could be an awesome low-risk win.
But if you need fast access to your money, a high-yield savings account is the safer, smarter play.
Either way, don’t let your cash sit in an account earning 0.01%.