Best CD rates today, December 10, 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] 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 from various institutions [2] - Notable offers include Sallie Mae's 15-month CD, Marcus by Goldman Sachs' 14-month CD, Synchrony Bank's 9-month CD, and LendingClub's 8-month CD [2] Group 2: Historical Context - CD rates were relatively higher in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [3] - The trend of falling CD rates continued into the 2010s, with average rates on 6-month CDs dropping to about 0.1% APY by 2013 [4] - Between 2015 and 2018, the Federal Reserve's gradual rate increases led to a slight improvement in CD rates, but the COVID-19 pandemic caused emergency rate cuts, resulting in record low CD rates [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, leading to higher APYs on savings products, including CDs [6] - As of September 2024, the Federal Reserve began cutting the federal funds rate, resulting in 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 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 [9]