The rates on CDs are still high right now, but some accounts could be smarter options than others right now.
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If you're comparing saving options, you'll find that most certificates of deposit (CDs) still offer competitive interest rates. But while CD interest rates are still relatively high, they've fallen from their recent peaks, when savers could score a 5% APY or higher on certain terms.
And, it's possible that CD rates will fall further if the Federal Reserve cuts rates at the September meeting. While many are projecting a rate cut, mixed economic data can make it tough to predict what the agency will do.
Given the current environment, what CD terms offer savers the biggest returns in September 2025? We spoke to banking and financial professionals about their CD interest rate predictions to learn what savers should consider when deciding where to put their hard-earned money.
Compare your CD options to find the right fit for your needs.
What CD terms offer the biggest returns this September?
If you have funds you want to set aside for a future purchase, a CD can be a good option, as you'll lock in your rate for the full CD term. The catch is that you agree to lock up your funds until the CD term ends or face an early withdrawal penalty. So, savers looking to get the best CD rates have to balance that and their need for liquidity when selecting a CD term.
When looking at your options, some of the CD terms offering the biggest returns this September include:
Six months is the sweet spot, experts say
CD terms can vary from months to years. Historically, longer CD terms provided savers with higher APYs, but we're not in a typical environment right now. Currently, short-term CD rates offer the biggest returns this September.
"Across the industry, the most attractive rates are concentrated around six months," says Derik Farrar, head of everyday banking and borrowing at U.S. Bank.
A 6-month CD, for example, could give you an above-average rate and a shorter CD maturity date. That way, you can earn more on your deposit, but can access the funds if you need them when the CD term ends.
Explore the CD options and rates available to you here.
Short-term CDs offer better returns in September
While 6-month CDs may be the sweet spot right now, short-term CDs in general are offering greater returns.
"Currently, we are seeing the short-term CD rates remain very attractive," says Wenni Wu, chief growth officer at Piermont Bank. "I think the short-term CD rates will remain competitive compared to the longer term."
CD account rates vary by financial institution. However, when there's uncertainty in the rate environment, or when a rate cut is likely at some point soon, most shorter-term CDs will offer savers higher APYs.
"I think until…a lot of the uncertainty that's out there in the market is resolved, then probably the most attractive CD rates are going to remain in relatively short terms," says Farrar.
If you compare CD accounts, you may still find shorter-term CD APYs at 4% or higher.
"I've seen everything from three to six months, ranging from 4.25% to 4.40%," says Gavin Nelson, the client deposit services sales officer at Merchants Bank.
Medium-term CDs may surprise you
Most of the best CD interest rates are being offered on short-term options right now, experts say. However, some medium-term CDs are also offering solid returns this September.
Nelson explains that there are a few outliers on 1-year CD terms.
"In this environment, that's not typically the case. Usually, you go out a year, the rates start to reduce," says Nelson.
As an example, Capital One offers its highest CD rate at 4.20% on a 12-month CD (as of September 1, 2025), whereas the 6-month CD rate is 3.50%. And, in general, CD terms of 12 months, 18 months and 24 months may still provide a relatively high yield and offer some flexibility in terms of liquidity. As a result, a medium-term CD could be a good option if you want to stash away funds for a purchase at a later date, such as paying for tuition or putting a down payment on a car.
Long-term CD terms used in a CD ladder
The experts we spoke to agree that short-term CD terms are generally where you'll find the biggest returns this September, but that doesn't necessarily mean you need to avoid long-term CDs. Depending on your strategy and liquidity needs, a CD ladder may or may not make sense.
With a CD ladder, you put your money in multiple CD accounts with varying terms. This typically includes short-term CDs and long-term CDs. For example, you would split your deposit across a 6-month CD, a 12-month CD, a 2-year CD and a 3-year CD so that you're locking in today's great rates while ensuring liquidity at regular intervals as the CD accounts mature.
"We think overall the rates are going to come down, then it is a good opportunity to lock in part of the ladder in longer terms, so that you can preserve the higher rate," says Wu."However, if you only care about maximizing the returns, then I think the shorter-term CDs currently pay the most."
If you'll need to access your funds sooner, then stick to short-term CDs. But if you want to preserve your cash and have a safe, predictable savings vehicle, a CD ladder strategy can be a smart option.
"We would say CD laddering is a great idea. Having a 1- to 5-year ladder really helps investors buffer against interest rate risk," says Jason R. Fannon, certified financial planner and senior partner of Cornerstone Financial Services.
The bottom line
Certificate of deposit interest rates may no longer be at their peak, but they're still relatively high. For the biggest returns this September, short-term CDs may be where you'll find the greatest yields. But the CD interest rate forecast shows a potential drop, so locking in rates now, whether short-term or long-term, could be a good option.
When looking at CD term maturity dates, make sure you won't need to access those funds before your CD matures. Have liquid savings available and review the early withdrawal penalties. As part of your strategy, you can also look into non-traditional CDs.
"What I would suggest is that they [savers] should mix in some no-penalty CDs. I think right now, the no-penalty CD rates are also pretty attractive," adds Wu.
To help meet your financial goals, research CD terms and rates, early withdrawal penalties and have a plan for what you want to do once the CD matures.
