Best CD rates today, October 15, 2025: Lock in up to 4.25% 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] 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 4.25% APY for an 8-month CD from LendingClub as of October 15, 2025 [2] - Historical trends show that CD rates were significantly higher in the early 2000s but fell to around 1% APY for one-year CDs by 2009 due to the financial crisis [2][3] Group 2: Historical Context - 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] - The Federal Reserve's policies, including keeping the benchmark interest rate near zero, contributed to low CD rates during this period [3] Group 3: Recent Developments - Following the COVID-19 pandemic, the Fed raised rates 11 times between March 2022 and July 2023, leading to higher APYs on savings products, including CDs [5] - As of September 2024, the Fed began cutting the federal funds rate, resulting in a decrease in CD rates 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] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation [8]