Best CD rates today, September 20, 2025 (best account provides 4.45% APY)

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024, making it a critical time for investors to lock in competitive CD rates before potential further declines [1] - The highest CD rate currently available is 4.45% APY, offered by LendingClub for an 8-month CD as of September 20, 2025 [2] Summary of CD Rates - Best CD rates are generally found in shorter terms of around one year or less, with online banks and credit unions leading in competitive offers [2] - The interest earned from a CD is determined by the annual percentage rate (APY), which reflects total earnings after one year, factoring in the base interest rate and compounding frequency [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD at 1.70% APY would yield a total balance of $1,017.13 after one year, with $17.13 earned in interest [3] - Conversely, a one-year CD at 4% APY would grow the same $1,000 investment to $1,040.74, resulting in $40.74 in interest [3] Impact of Deposit Amounts - Increasing the deposit amount in a CD significantly boosts potential earnings; for example, a $10,000 deposit in a one-year CD at 4% APY would result in a total balance of $10,407.42, earning $407.42 in interest [4] Types of CDs - Various types of CDs offer different benefits, including: - Bump-up CD: Allows for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - No-penalty CD: Provides the option to withdraw funds before maturity without incurring a penalty [4] - Jumbo CD: Requires a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal in the current environment [4] - Brokered CD: Purchased through a brokerage, potentially offering higher rates or flexible terms, but may carry more risk and lack FDIC insurance [4]