Best CD rates today, October 18, 2025 (best account provides 4.25% APY)

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced its first rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The best CD rates are currently found in shorter terms, particularly from online banks and credit unions, with the highest rate at 4.25% APY as of October 18, 2025 [2] CD Rates Overview - The highest CD rate available today is 4.25% APY, offered by LendingClub for an 8-month CD and by United Fidelity Bank for 10- and 18-month CDs [2] - 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 Example - An investment of $1,000 in a one-year CD at 1.70% APY would yield a total balance of $1,017.13, while a one-year CD at 4% APY would grow to $1,040.74 [3] Deposit Impact on Earnings - A deposit of $10,000 in a one-year CD at 4% APY would result in a total balance of $10,407.42 at maturity, earning $407.42 in interest [4] Types of CDs - Bump-up CDs allow for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - No-penalty CDs permit early withdrawal without penalties, providing more flexibility [4] - Jumbo CDs require a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal [4] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms but carry more risk and may not be FDIC-insured [4]