Core Insights - CD rates are currently declining due to the Federal Reserve's decision to cut its benchmark rate three times in late 2024 and a recent cut in September 2025 [2] - The highest CD rate available as of October 3, 2025, is 4.20% APY, offered by United Fidelity Bank for a 2-year CD and First National Bank of America for a 7-month CD [3] - Online banks and neobanks typically offer the best CD rates due to lower overhead costs, allowing them to provide higher interest rates on deposit accounts [4] CD Rate Comparisons - Top CD rates currently reach about 4% APY, particularly for shorter terms of one year or less [2] - National averages for CD rates are significantly lower than the top rates available, emphasizing the need for consumers to shop around [3] Financial Institutions Offering Competitive Rates - Online banks are not the only institutions with competitive CD rates; credit unions also offer attractive rates, returning profits to their member-owners [5] - Some credit unions have strict membership requirements, but many are accessible to a broader audience [5] Considerations for Opening a CD - CDs are considered a safe and stable savings vehicle, backed by federal insurance, and allow locking in current rates [6] - Early withdrawal penalties apply if funds are accessed before the term ends, making high-yield savings accounts or money market accounts alternatives for those needing flexibility [7] - While current CD rates are high by historical standards, they may not provide sufficient growth for long-term savings goals compared to market investments [8]

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 4.45% APY for an 8-month CD from LendingClub as of September 30, 2025 [2] - CD rates today are significantly higher than traditional savings accounts, indicating a favorable environment for investors seeking fixed returns [2] Group 2: Historical Context - CD rates experienced a decline following the dot-com bubble and the 2008 financial crisis, with average one-year CDs paying around 1% APY by 2009 [3] - The trend of falling CD rates continued into the 2010s, with average rates for 6-month CDs dropping to about 0.1% APY by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Federal Reserve began increasing rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Federal Reserve started cutting the federal funds rate, leading to 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 offered 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] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation [9]

Core Insights - Current CD rates are declining due to the Federal Reserve's decision to cut its benchmark rate three times in late 2024, yet some banks still offer competitive rates, with top rates reaching about 4% APY, particularly for terms of one year or less [2][3] - The highest CD rate as of September 26, 2025, is 4.45% APY, offered by LendingClub on its 8-month CD [2] - National averages for CD rates are significantly lower than the top rates available, emphasizing the need for consumers to shop around for the best options [3] Group 1: Online Banks and Credit Unions - Online banks and neobanks typically offer the best CD rates due to lower overhead costs, allowing them to provide higher interest rates and lower fees [4] - Credit unions, as not-for-profit financial cooperatives, also offer competitive CD rates, returning profits to their member-owners, although some have strict membership requirements [5] Group 2: Considerations for Opening a CD - CDs are considered a safe and stable savings vehicle, backed by federal insurance, allowing customers to lock in current rates [6] - There are drawbacks to consider, such as early withdrawal penalties if funds are accessed before the term ends, and the potential for lower returns compared to market investments for long-term savings goals [7][8]

Group 1 - The Federal Reserve has reduced its target interest rate three times in 2024 and announced its first rate cut of 2025, impacting deposit account rates and presenting a potential opportunity to lock in high CD rates [1] - As of September 22, 2025, the highest CD rate available is 4.45% APY offered by LendingClub for an 8-month CD, indicating competitive offerings in the market [2] - The national average CD rates are significantly lower than the best available rates, with the highest national average for a 1-year term at 1.70%, reflecting the impact of the Federal Reserve's actions to combat inflation [3] Group 2 - To find the best CD rates, it is advisable to shop around and compare rates from various financial institutions, particularly online banks which typically offer more competitive rates due to lower overhead costs [4] - It is important to check minimum deposit requirements as higher rates may come with higher minimums, ensuring alignment with the amount intended for deposit [4] - Reviewing account terms and conditions is crucial, including early withdrawal penalties and auto-renewal policies, with some CDs offering no-penalty options for greater flexibility [4]

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024, making it a critical time for investors to lock in competitive CD rates before potential further declines [1] - The highest CD rate currently available is 4.45% APY, offered by LendingClub for an 8-month CD as of September 20, 2025 [2] Summary of CD Rates - Best CD rates are generally found in shorter terms of around one year or less, with online banks and credit unions leading in competitive offers [2] - 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 [2] 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 after one year, with $17.13 earned in interest [3] - Conversely, a one-year CD at 4% APY would grow the same $1,000 investment to $1,040.74, resulting in $40.74 in interest [3] Impact of Deposit Amounts - Increasing the deposit amount in a CD significantly boosts potential earnings; for example, a $10,000 deposit in a one-year CD at 4% APY would result in a total balance of $10,407.42, earning $407.42 in interest [4] Types of CDs - Various types of CDs offer different benefits, including: - **Bump-up CD**: Allows for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - **No-penalty CD**: Provides the option to withdraw funds before maturity without incurring a penalty [4] - **Jumbo CD**: Requires 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 [4] - **Brokered CD**: Purchased through a brokerage, potentially offering higher rates or flexible terms, but may carry more risk and lack FDIC insurance [4]

Core Insights - CD rates are currently declining due to the Federal Reserve's decision to cut its benchmark rate three times in late 2024, yet some banks still offer competitive rates reaching up to 4.45% APY for shorter terms [2][3] Group 1: Current CD Rates - The highest CD rate available as of September 19, 2025, is 4.45% APY offered by LendingClub on its 8-month CD [2] - National averages for CD rates are significantly lower than the top rates available, emphasizing the need for consumers to shop around [3] Group 2: Online Banks and Credit Unions - Online banks and neobanks typically offer the best CD rates due to lower overhead costs, allowing them to provide higher interest rates and lower fees [4] - Credit unions also offer competitive CD rates as not-for-profit institutions that return profits to their members, although some have strict membership requirements [5] Group 3: Considerations for Opening a CD - CDs are considered a safe and stable savings vehicle, backed by federal insurance, making them a reliable option for locking in current rates [6] - However, early withdrawal penalties apply if funds are accessed before the term ends, and for those seeking flexible access, high-yield savings accounts may be more suitable [7] - While current CD rates are high by historical standards, they may not provide sufficient growth for long-term savings goals compared to market investments [8]

Group 1 - The Federal Reserve has reduced its target interest rate three times in 2024, impacting deposit account rates and creating an opportunity to lock in high CD rates [1] - As of September 15, 2025, the highest CD rate available is 4.45% APY offered by LendingClub for an 8-month CD [2] - The national average CD rates are significantly lower, with the highest average rate for a 1-year term at 1.76% as of August 2025, reflecting the highest rates seen in nearly two decades due to the Federal Reserve's actions against inflation [3] Group 2 - To find the best CD rates, it is advisable to shop around and compare rates from various financial institutions, particularly online banks which typically offer more competitive rates due to lower overhead costs [4] - Higher CD rates may come with higher minimum deposit requirements, so it is essential to ensure that the planned deposit aligns with these requirements [4] - Reviewing account terms and conditions is crucial, including early withdrawal penalties and auto-renewal policies, with some CDs offering no-penalty options for greater flexibility [4]

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024, indicating a potential decline in competitive CD rates, making it crucial for investors to lock in high rates now [1] - The best CD rates are currently found in shorter terms, particularly around one year or less, with online banks and credit unions leading in offers [2] CD Rates Overview - As of September 13, 2025, the highest CD rate available is 4.45% APY from LendingClub for an 8-month CD [2] - 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 [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD at 1.81% APY with monthly compounding results in a total balance of $1,018.25 after one year, yielding $18.25 in interest [3] - Conversely, a one-year CD at 4% APY would grow the same $1,000 to $1,040.74, resulting in $40.74 in interest [3] Deposit Impact on Earnings - Increasing the deposit amount significantly boosts potential earnings; for instance, a $10,000 deposit in a one-year CD at 4% APY would yield a total balance of $10,407.42, translating to $407.42 in interest [4] Types of CDs - Various types of CDs offer different benefits, including: - **Bump-up CD**: Allows for a one-time request to increase the interest rate if bank rates rise during the term [4] - **No-penalty CD**: Enables early withdrawal without penalties [4] - **Jumbo CD**: Requires a higher minimum deposit (typically $100,000 or more) and may offer higher rates, though the difference from traditional CDs may be minimal in the current environment [4] - **Brokered CD**: Purchased through a brokerage, potentially offering higher rates or flexible terms but with increased risk and possible lack of FDIC insurance [4]

Core Insights - Current CD rates are beginning to decline due to the Federal Reserve's decision to cut its benchmark rate three times in late 2024, yet some banks still offer competitive rates reaching up to 4.45% APY for shorter terms [2][3] Group 1: CD Rates Overview - The highest CD rate available as of September 12, 2025, is 4.45% APY offered by LendingClub on its 8-month CD [2] - National averages for CD rates are significantly lower than the top rates available, emphasizing the need for consumers to shop around [3] Group 2: Online Banks and Credit Unions - Online banks and neobanks typically offer the best CD rates due to lower overhead costs, allowing them to provide higher interest rates and lower fees [4] - Credit unions also offer competitive CD rates as not-for-profit financial cooperatives return profits to their members, although some have strict membership requirements [5] Group 3: Considerations for Opening a CD - CDs are considered a safe and stable savings vehicle, backed by federal insurance, making them a good option for locking in current rates [6] - However, there are drawbacks such as early withdrawal penalties and limited access to funds, which may make high-yield savings accounts or money market accounts more suitable for those needing flexibility [7] - While current CD rates are high by historical standards, they may not provide sufficient growth for long-term savings goals compared to market investments [8]

Over the past week, leading CD rates in three different terms have climbed, as banks and credit unions wait for a still-uncertain Fed rate cut. The top overall APY is 4.60%. https://t.co/V9xsdRxcMI ...