Best CD rates today, December 13, 2025 (best account provides 4.25% APY)

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced a third rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The highest CD rate currently available is 4.25% APY offered by United Fidelity Bank on a 2-year CD as of December 13, 2025 [3] CD Rates Overview - Best CD rates are generally found on shorter terms of around one year or less, with online banks and credit unions leading in competitive rates [3] - The amount of 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 [3] Interest Earnings Examples - An investment of $1,000 in a one-year CD at 1.70% APY would yield a total balance of $1,017.13, including $17.13 in interest [4] - Conversely, a one-year CD at 4% APY would grow the balance to $1,040.74, resulting in $40.74 in interest [4] - A deposit of $10,000 in a one-year CD at 4% APY would result in a total balance of $10,407.42, earning $407.42 in interest [5] 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 [5] - No-penalty CDs permit early withdrawal without penalties, providing more liquidity [5] - Jumbo CDs require higher minimum deposits (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal in the current environment [5] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms, but they carry additional risks and may not be FDIC-insured [5]