Best CD rates today, October 22, 2025: Lock in up to 4.1% 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][2] 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 4.1% APY available from Marcus by Goldman Sachs, Sallie Mae Bank, and Synchrony Bank [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 economic slowdowns and Federal Reserve rate cuts [3][4] Group 2: Historical Context - The trend of falling CD rates continued into the 2010s, with average rates dropping to about 0.1% APY for 6-month CDs and 0.8% APY for 5-year CDs by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Federal Reserve began gradually increasing rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Federal Reserve started cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [7] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer 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 [8] - When choosing 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 [9]