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Best 12 Month CD Rates Today: Top Options for Secure Savings in 2025

Certificates of Deposit (CDs) are a secure way to grow your savings with fixed interest rates over a predetermined period. As of March 2025, 12-month CDs are offering competitive yields, making them an excellent choice for short-term investors. Unlike savings accounts, CDs lock in your funds for a specific term, ensuring a guaranteed return. This section delves into the current top CD rates, factors influencing these rates, and how to select the best option for your financial goals.

Current Top 12-Month CD Rates

Several banks and credit unions are currently offering attractive rates on 12-month CDs. Below is a comparison of the top options available in the U.S. as of March 2025. These rates are sourced from reputable financial institutions and are subject to change based on market conditions.

Financial Institution	APY	Minimum Deposit	Early Withdrawal Penalty
Ally Bank	4.50%	$0	60 days of interest
Marcus by Goldman Sachs	4.45%	$500	90 days of interest
Synchrony Bank	4.40%	$2,000	90 days of interest
Capital One	4.35%	$0	3 months of interest
Discover Bank	4.30%	$2,500	6 months of interest

Factors to Consider When Choosing a CD

While the interest rate is a critical factor, other elements should influence your decision. Here are some key considerations:

Minimum Deposit: Some banks require a minimum deposit to open a CD, which can range from $0 to several thousand dollars.
Early Withdrawal Penalty: Accessing your funds before the maturity date typically incurs a penalty, which can eat into your earnings.
Compounding Frequency: The more frequently interest is compounded, the higher your effective yield will be.
FDIC Insurance: Ensure the bank is FDIC-insured, protecting your deposit up to $250,000 per account.

How to Maximize Your CD Returns

To get the most out of your CD investment, consider the following strategies:

Laddering: Spread your investments across multiple CDs with different maturity dates to maintain liquidity and take advantage of rising rates.
Promotional Rates: Some banks offer limited-time promotional rates that can provide a higher yield.
Credit Unions: Often, credit unions offer higher rates than traditional banks, though membership may be required.

By carefully evaluating these factors and strategies, you can optimize your CD investments to meet your financial objectives. Always compare rates and terms from multiple institutions to ensure you’re getting the best deal available.

References

Ally Bank
Marcus by Goldman Sachs
Synchrony Bank
Capital One
Discover Bank

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