Best CD rates today, December 20, 2025 (best account provides 4.1% 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 rates currently available are around 4.1% APY, primarily offered by online banks and credit unions for shorter terms [3] CD Rates Overview - As of December 20, 2025, the best CD rates are 4.1% APY from Sallie Mae Bank for a 15-month CD and LendingClub Bank for an 8-month CD [3] - The interest earned from a CD is determined by the annual percentage rate (APY), which accounts for the base interest rate and compounding frequency [3] Interest Earnings Examples - A $1,000 investment in a one-year CD at 1.63% APY would yield a total of $1,016.42 after one year, while a 4% APY would result in $1,040.74 [4] - Increasing the deposit to $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 flexibility [5] - Jumbo CDs require a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference may be minimal in the current environment [5] - 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 [5]