Best CD rates today, December 4, 2025 (lock in up to 4.1% APY)

Core Insights - CD rates are currently higher than historical averages, with some financial institutions offering rates of 4% APY and above, particularly online banks [2][3] - The highest CD rate as of December 4, 2025, is 4.1% APY from Marcus by Goldman Sachs for a 14-month CD [2] - The Federal Reserve has been cutting its target rate, which has led to a decline in CD rates since last year [2][4] Group 1: Current CD Rates - CD rates are relatively high compared to historical averages, but they have been declining since the Federal Reserve began cutting rates [2][3] - Several financial institutions are offering competitive rates of 4% APY and up, with the highest being 4.1% APY from Marcus by Goldman Sachs [2] Group 2: Federal Reserve Actions - The Federal Reserve has cut its target rate three times in late 2024 by a total of one percentage point due to slowing inflation and an improved economic outlook [3] - The Fed announced its second rate cut of 2025 in October, with uncertainty regarding future cuts [4] Group 3: Impact on CD Rates - The federal funds rate does not directly impact deposit interest rates, but they are correlated; when the Fed lowers rates, financial institutions typically follow suit [5] - As the Fed lowers its rate, CD rates are beginning to fall again, suggesting that now may be a good time to lock in current rates [5] Group 4: Opening a CD - The process for opening a CD account varies by institution but generally includes researching rates, choosing an account that meets financial needs, preparing necessary documents, completing the application, and funding the account [6]