Best 12 Month CD Rates Today: Top Short-Term Investment Options in 2025

This guide provides a detailed comparison of the top 12-month CD rates, along with insights into other short-term investment avenues such as high-yield savings accounts, Treasury bills, and money market funds. By the end, you will have a clear understanding of where to invest your money for optimal short-term growth.

Short-term investments are designed to provide returns over a brief period, typically ranging from a few months to three years. These options are ideal for individuals who need access to their funds in the near future or want to minimize risk while earning a steady return. Among the most secure and predictable short-term investments are Certificates of Deposit (CDs), which offer fixed interest rates and guaranteed returns upon maturity. In 2025, 12-month CDs are particularly attractive due to their balance of higher yields and relatively short lock-in periods.

Other short-term investment options include high-yield savings accounts, Treasury bills, and money market funds. Each of these has unique advantages, such as liquidity, tax benefits, or higher interest rates. Choosing the right option depends on your financial goals, risk tolerance, and time horizon. Below, we delve deeper into these options, comparing their features, benefits, and potential drawbacks.

Best 12-Month CD Rates in 2025

Certificates of Deposit (CDs) are time-bound deposits offered by banks and credit unions. They provide fixed interest rates, making them a low-risk investment. Here are some of the best 12-month CD rates available today:

• Ally Bank: 4.25% APY
• Marcus by Goldman Sachs: 4.20% APY
• Discover Bank: 4.15% APY
• Synchrony Bank: 4.10% APY
• Capital One: 4.05% APY

These rates are subject to change, so it is advisable to check with the respective institutions for the latest offers. Early withdrawal penalties may apply, so ensure you can commit to the term before investing.

Alternative Short-Term Investment Options

While CDs are a solid choice, other short-term investments may better suit your needs. Below are some alternatives:

High-Yield Savings Accounts

High-yield savings accounts offer liquidity and competitive interest rates. Unlike CDs, they allow unlimited withdrawals, making them ideal for emergency funds. Some top options include:

• Ally Bank: 3.75% APY
• Marcus by Goldman Sachs: 3.70% APY
• Discover Bank: 3.65% APY

Treasury Bills (T-Bills)

Treasury bills are short-term government securities with maturities ranging from a few days to one year. They are considered one of the safest investments, backed by the U.S. government. Current rates for 12-month T-bills hover around 4.00%.

Money Market Funds

Money market funds invest in short-term, high-quality debt securities. They offer slightly higher returns than savings accounts while maintaining liquidity. Popular options include Vanguard Treasury Money Market Fund (VUSXX) and Fidelity Money Market Fund (SPRXX).

Comparison Table: Short-Term Investment Options

For more information, visit the official websites of Ally Bank , Marcus by Goldman Sachs , and TreasuryDirect.