Best CD rates today, December 29, 2025 (Lock in up to 4% APY)

Core Insights - The Federal Reserve has reduced its target interest rate three times in 2024 and announced a third rate cut for 2025, impacting deposit account rates and presenting a potential opportunity to lock in high CD rates [1] Group 1: Current CD Rates - The highest CD rate available as of December 29, 2025, is 4.1% APY, offered by Sallie Mae Bank for a 15-month CD and Synchrony Bank for a 9-month CD [2] - Today's average CD rates are among the highest seen in nearly two decades, largely due to the Federal Reserve's actions to combat inflation [3] Group 2: National Average CD Rates - The national average interest rate for a 1-year CD stands at 1.63%, significantly lower than the best available rates [3] - Online banks and credit unions typically offer more competitive rates compared to traditional banks [3] Group 3: Finding the Best CD Rates - It is advisable to shop around and compare CD rates from various financial institutions before making a decision [4] - Online banks often provide higher interest rates on CDs due to lower overhead costs [4] - Potential investors should check minimum deposit requirements and review account terms, including early withdrawal penalties and auto-renewal policies [4]