Best CD rates today, October 1, 2025: Lock in up to 4.45% APY

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] CD Rates Overview - Current best short-term CDs (6 to 12 months) 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 October 1, 2025 [2] - Historical context shows that CD rates were higher in the early 2000s but fell significantly after the 2008 financial crisis, with one-year CDs averaging around 1% APY by 2009 [2] - The trend of falling CD rates continued into the 2010s, with average rates for 6-month CDs dropping to about 0.1% APY by 2013 [3] Economic Impact on CD Rates - The Federal Reserve's policies, particularly the decision to keep benchmark interest rates near zero, contributed to low CD rates during the Great Recession [3] - A slight improvement in CD rates occurred between 2015 and 2018 as the Fed gradually increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows for CD rates [4] - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher rates on loans and savings products, including CDs [5] Current Trends and Future Expectations - As of September 2024, the Fed began cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [6] - 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] Choosing the Best CD - When selecting a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to ensure the best fit for individual needs [8]