In today’s uncertain global economic climate, more savers in the U.S. and Europe are taking a fresh look at how they manage their cash. One traditional yet increasingly appealing option has made a strong comeback—Certificates of Deposit, or CDs.
These time deposits are gaining renewed attention for their stability, predictable returns, and insulation from market volatility, especially in a high-interest-rate environment like the one we’re seeing in 2025.
According to recent data from July 2025, CD rates remain impressively high, with most offerings yielding over 4% APY. In fact, one of the highest rates currently tracked by analysts is a 4.45% APY from Morgan Stanley Private Bank for terms ranging from six months to five years—and with no minimum deposit required, it’s accessible even to those with modest savings.
Marcus by Goldman Sachs is another standout, offering CD terms from six months to six years, with APYs reaching up to 4.40%. The minimum deposit is just $500, and the bank even provides a 10-day rate guarantee: if the APY increases shortly after opening your CD, you’ll still benefit from the higher rate. This kind of flexibility, paired with competitive yields, has made Marcus a favorite among retail savers.
Several other institutions are also offering top-tier CD options. Limelight Bank provides APYs up to 4.45% with a minimum deposit of $1,000. Popular Direct goes as high as 4.40% but requires a much higher $10,000 minimum deposit, making it more suited to those with larger cash reserves.
First Internet Bank of Indiana, Salem Five Direct, and Bask Bank all round out the list of banks offering reliable, well-structured CD products tailored to a range of needs and deposit sizes.
The core appeal of CDs lies in their low risk and guaranteed return. Unlike other investment vehicles that fluctuate with market performance, CDs provide a fixed rate of return for a specified period. And in the U.S., deposits up to $250,000 are FDIC-insured, offering an additional layer of security. This makes CDs an ideal solution for conservative investors looking for predictable growth without exposure to volatility.
The current interest rate environment—driven by central banks’ inflation-fighting policies—has made even short- and mid-term CDs highly attractive. In fact, you no longer need to commit to a multi-year term to get solid returns.
A great example is the 7-month No-Penalty CD from Marcus, offering a 4.15% APY. This product allows full withdrawal after just seven days from the funding date, with no penalties—a powerful combination of liquidity and yield.
However, choosing the right CD requires more than just chasing the highest rate. Investors should align their CD term with their cash flow needs. Funds placed in a traditional CD are locked in until maturity, and early withdrawals may trigger penalties. For this reason, some prefer no-penalty CDs for short-term flexibility, even if the rate is slightly lower.
Minimum deposit requirements are another factor to weigh. While some banks offer CDs with no minimum or a low entry point (like Marcus at $500), others, like Salem Five Direct or Popular Direct, require upwards of $10,000. For many households and younger savers, those lower thresholds are significantly more practical.
It’s also important to remember that CDs are a preservation-focused tool. While they won’t deliver the explosive growth of equities or cryptocurrencies, they provide something those assets often cannot—stability.
For example, Helen, a retired schoolteacher from New York, recently shifted a portion of her pension into a CD with a 4.35% APY. Her goal was simple: to ensure two years of predictable income during uncertain market conditions.
Looking ahead, the current rate environment won’t last forever. If inflation continues to ease and central banks begin to lower rates, the opportunity to lock in today’s high CD yields will disappear. In fact, now may be the ideal time to build what many advisors call a "CD ladder"—investing in multiple CDs with staggered maturities. This strategy allows you to capture high rates now while maintaining liquidity and reinvestment opportunities in the future.
Thomas, a financial advisor based in Berlin, encourages clients to think about CDs not just as savings tools, but as an integral part of a diversified financial plan. “Clients often overlook how powerful CDs can be in stabilizing a portfolio, especially in times of economic stress,” he says. “When you can get 4.5% guaranteed for 12 months, that’s not just safe—it’s smart.”
In summary, CDs have gone from being seen as a passive savings option to an actively chosen tool among savvy investors in the U.S. and Europe. With interest rates still elevated and economic uncertainty lingering,
Certificates of Deposit offer a unique balance of security, predictability, and solid returns. For those who value safety but still want their money to work for them, a well-structured CD investment may be one of the most rational choices in today’s financial landscape.