Best CD rates today, September 17, 2025: Lock in up to 4.45% APY ahead of the next Fed rate cut

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.45% APY for an 8-month CD from LendingClub as of September 17, 2025 [2] - Historical trends show that CD rates were higher in the early 2000s but fell significantly after the 2008 financial crisis, with average one-year CDs at around 1% APY by 2009 [2][3] Group 2: Historical Context - The trend of falling CD rates continued into the 2010s due to the Federal Reserve's policies, with average rates on 6-month CDs dropping to about 0.1% APY by 2013 [3] - Between 2015 and 2018, CD rates improved slightly as the Fed increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows in CD rates [4] Group 3: Recent Developments - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [5] - As of September 2024, CD rates are beginning to decline from their peak, although they remain high by historical standards [6] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offered higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [6][7] - When choosing a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to maximize returns [8]