Best CD rates today, December 27, 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 best CD rates are currently found at online banks and credit unions, particularly for shorter terms of around one year or less [3] CD Rates Overview - As of December 27, 2025, the highest CD rate available is 4.1% APY, offered by Sallie Mae Bank for a 15-month CD and Synchrony Bank for a 9-month CD [3] - The 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 with 1.63% APY, compounded monthly, would yield a total of $1,016.42 at maturity, resulting in $16.42 in interest [4] - If the same amount is invested in a one-year CD with 4% APY, the total balance would grow to $1,040.74, earning $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 at maturity, 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 a higher minimum deposit, 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]