CDs in October 2025: Here's What $10,000 Can Earn You Right Now
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CD shoppers had a great run the past two years, but that window is closing. As of October 2025, the Fed has already trimmed rates and most analysts expect more cuts before year-end and into 2026. Naturally, CD rates are starting to follow suit.
The good news is that APYs haven't fallen off a cliff yet. Many online banks are still paying around 4.00% APY on 12-month CDs -- which is excellent compared to the national average of just 1.68%, according to FDIC data.
If you've been waiting for the "perfect" time to open a CD, this might be your cue.
How much $10,000 can earn you
The best thing about CDs is that the return is guaranteed. You know exactly what you'll earn and when you'll get it.
If you lock in a 12-month CD at 4.00% APY, your $10,000 would grow to $10,400 by next October.
Now compare that to the national average of 1.68%, which would leave you with just $10,168 after a year.
| CD Term | APY | Ending Balance |
|---|---|---|
| 12 months | 4.00% | $10,400 |
| 12 months | 1.68% (national average) | $10,168 |
That's a $232 difference. So it really pays to shop around because rates vary wildly across banks.
Even better, some "oddball" CD terms (like 8-month or 14-month options) can actually pay slightly higher yields than the standard 12-month term.
Banks occasionally use these limited-run maturities to stand out in a competitive market, and savvy savers can benefit from it.
A standout option right now is LendingClub's 8 Mo. CD at 4.10% APY, a flexible pick that still pays above 4.00%.
Check out our LendingClub CD review for the full lineup of rates and terms.
LendingClub CD
On LendingClub's Secure Website.
A smart move before the next rate cut
When the Fed cuts rates, banks follow suit and lower their APYs on savings accounts, CDs, money markets, etc. They all gradually pay less.
So if you open a CD before the next rate drop, you lock in that higher yield for the full term.
It's kind of like buying tickets early for a plane flight. Sure, you could wait and see what happens to prices. But odds are you'll end up paying more (or earning less) later.
If you've got cash sitting idle -- maybe an emergency fund overflow or savings you won't need for 12 months -- a CD gives it purpose and protection. You earn a guaranteed return, and you're not tempted to touch it in the meantime.
When a high-yield savings account might be better
High-yield savings accounts (HYSAs) are still holding their own, even as rates begin to taper.
Right now, the best HYSAs are offering about 3.50% to 4.50% APY -- right around what the top CDs offer.
HYSA rates can change at any time, which means they're vulnerable to immediate rate cuts when the Fed makes a move. That said, they come with one huge perk: flexibility. You can move your money in or out whenever you want.
Personally, I'm fine taking the risk of earning a little less interest as rates drop, in exchange for the freedom to grab my money at any point. But that's just me. It's all about balancing certainty with flexibility, and knowing which one matters more to you right now.
Explore today's best high-yield savings accounts, featuring flexible, FDIC-insured options still paying near 4.00% APY.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.