:max_bytes(150000):strip_icc()/TUE-Eva-Katalin-f64c041af49c4563a3140a6a3b9417f0.jpg?w=1024&resize=1024,1024&ssl=1 "3 Big Banks Just Boosted CD Rates—Here’s Why That’s Surprising Right Now")
Key Takeaways
- CD rates have barely budged in recent months, with the Federal Reserve holding steady since December and widely expected to do the same again next week.
- That’s why it’s a welcome surprise to see three large U.S. banks boosting their CD rates today.
- Marcus by Goldman Sachs raised APYs on four CDs, now offering 4.15% to 4.40% on terms of 6 to 13 months.
- Capital One and Discover bumped their 6-month CD rates to 4.20% today—they’re among the best yields currently offered by major banks.
- These are strong APYs from major banks, but for the best returns, explore the smaller banks and credit unions that lead our rankings of the best nationwide CDs.
CD Rates Have Been Holding Steady—But These 3 Big Banks Just Raised Theirs
After cutting its benchmark interest rate three times in late 2024, the Federal Reserve has remained in a holding pattern throughout this year. It has left rates unchanged at four consecutive meetings—and is widely expected to do so again next week.
As a result, the best CD rates have been mostly flat, following a slight dip at the end of last year. While certificates of deposit (CDs) are still offering historically strong returns, with top APYs around 4.60%, this calm rate environment means any yield improvements are both welcome and newsworthy.
4 CD Rate Hikes Just Rolled Out From Marcus by Goldman Sachs
Marcus by Goldman Sachs kicks off the positive CD news, raising not one, but four CD rates today. Here’s what’s new:
- 6-month CD: 4.40% (up from 4.25%)
- 9-month CD: 4.30% (up from 4.20%)
- 12-month CD: 4.20% (up from 4.10%)
In addition, Marcus boosted the rate on its 13-month no-penalty CD. Though it pays slightly less than the 12-month option, it lets you withdraw early without penalty. That certificate is now paying 4.15%, up from 4.00%.
Marcus is an online-only bank operated by Goldman Sachs, the fifth-largest U.S. retail bank by assets. Only Chase, Bank of America, Citigroup, and Wells Fargo are bigger.
Capital One and Discover Just Raised Their 6-Month CD Rates
Capital One and Discover may have merged under one corporate umbrella this spring, but so far they continue to operate as separate brands with their own product menus. Today, both raised the rates on their 6-month CDs to 4.20%. Discover had been paying 3.70% on its 6-month certificate while Capital One was offering 3.80%.
Capital One also raised rates on six additional CDs, spanning terms from 18 months to 5 years. But even with the increases, none of those APYs top 4%, making them less competitive compared to the best offers available in the 18-month and 5-year term lengths.
Before the merger, Capital One ranked as the 11th-largest U.S. retail bank by assets, with Discover at 33rd. Together, the combined institution now ranks among the nation’s top 10 banks by asset size—and is also the largest credit card issuer in the U.S.
Why It’s Smart to Lock In a CD Right Now
Financial markets are currently pricing in a 95% probability that the Fed will leave interest rates where they are at next week’s meeting, according to the CME Group’s FedWatch Tool. But by the September meeting, the odds of a Fed rate cut are about 60%. If that comes to pass, CD rates will begin to fall—making now a smart time to lock in the high rates available today.
You’ll Still Find the Best CD Rates at Smaller Banks and Credit Unions
If you want to lock in the highest possible rate, better offers continue to come from smaller banks and credit unions.
Though it may feel safer to stick with a brand-name bank, your deposits are equally protected at any FDIC-insured bank or NCUA-insured credit union. Coverage extends up to $250,000 per person, per institution—regardless of the size or name recognition of the institution.
CDs are also a great fit for this kind of rate-hunting, thanks to their “set it and forget it” nature. In most cases, you’ll only interact with your CD account twice: when you open it, and when it matures. While interest may be credited monthly or quarterly, and you’ll receive regular statements, those typically require no action—making it easy to open a CD outside your primary bank.
If you’re open to choosing a lesser-known institution, our daily ranking of the top CD rates highlights more than a dozen options that beat the offers from Marcus, Capital One, and Discover. We also publish daily term-by-term rankings (linked below the chart), including the top national APYs for each CD term.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more.
For more about how we choose the best rates, read our full methodology.
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