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 ...