This 5-month CD offers 4.45% annual yield – plus 8 other special rates for October 2025

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Key takeaways

Short-term CDs continue to offer some of the strongest returns available, with the best offerings nationwide paying between 4.32% and 4.45% on an annualized basis.
The best opportunities may not last long, as markets expect the Federal Reserve to cut interest rates later this month and again in December.
Whether you like PenAir Credit Union’s 5-month CD that pays 4.45% or prefer another offer, it’s smart to lock in your rate now — the best APY can disappear overnight.

The full article continues below these offers from our partners.

Short-term certificates of deposit remain ahead, but interest rates may decline soon

For money you can only put aside for a few months — or a little over a year — short-term certificates of deposit (CDs) still deliver some of the best returns of all. It allows savers to lock in one of today’s higher interest rates before a potential rate cut by the Fed, without tying up money for too long.

Among CDs available nationally from federally insured banks and credit unions, the nine highest APYs in the country fall in the 3- to 13-month range, currently ranging from 4.32% to 4.45% APY. The market leader is PenAir Credit Union’s five-month CD, paying 4.45%.

Time may be short to get one of these higher returns. With the Fed expected to cut twice this fall, certificate of deposit offers are likely to decline in the coming weeks. Locking in now locks in your APY until maturity, no matter how low market rates fall.

Why is this important to you?

Short-term certificates of deposit are still paying near-peak yields, but those offers are unlikely to continue if the Fed makes additional interest rate cuts later this year. Opening a CD now allows you to lock in your interest rate and guarantee that return, even if interest rates fall.

Best Short-Term Certificate of Deposit Rates for October 2025

Every business day, we review CD rates for more than 200 banks and credit unions that offer accounts nationally and publish the leading rates in our various CD rankings. The best overall rates are now concentrated in the shortest terms, which range from 3 to 13 months.

If you can commit to your money a little longer, you will find excellent returns over periods of 1 to 5 years. Each of the best offers in these categories pays at least a 4.00% annual return, allowing you to earn a strong return in the future.

How likely is a Fed rate cut this month?

The Fed is widely expected to cut interest rates by a quarter of a percentage point at its meeting scheduled for October 29, with another similar cut possible in December. Financial markets are currently pricing in odds of better than 90% for both moves – and Fed Chairman Jerome Powell today signaled agreement with an expected cut in October – meaning a decline in CD yields could be just weeks away. This makes now a good time to grab one of today’s highest rates before they drop.

In fact, some banks and credit unions may not wait for the official decision from the Federal Reserve to make changes, and any offer of CDs could disappear without warning. So, if you lock in a price and term that suits your goals, it’s smart to secure this CD while you still can.

Daily ranking of the best CDs and savings accounts

We update these rankings every business day to give you the best deposit rates available:

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Note that the “highest rates” listed here are the highest rates available nationally that Investopedia determined in its daily search of hundreds of banks and credit unions. This is very different from the national average, which includes all banks that offer a CD with this term, including many large banks that pay a pittance in interest. Thus, national rates are always very low, while the highest rates you can discover by shopping around are often 5, 10 or even 15 times higher.

How to Find the Best Savings and CD Rates

Each business day, Investopedia tracks rate data for more than 200 banks and credit unions that offer CDs and savings accounts to customers across the country and determines a daily ranking of the highest-grossing accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial account deposit must not exceed $25,000. It is also not possible to determine A maximum The deposit amount is less than $5,000.

Banks must be available in at least 40 states to be eligible to be available nationwide. While some credit unions require you to donate to a specific charity or association to become a member if you do not meet other eligibility criteria (for example, if you do not live in a certain area or work a certain type of job), we exclude credit unions with donation requirements of $40 or more. To learn more about how to choose the best rates, read our full methodology.

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