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 secure high certificate of deposit (CD) rates [1] Group 1: Current CD Rates - As of December 22, 2025, the highest CD rate available is 4.1% APY, offered by Sallie Mae Bank for a 15-month CD and LendingClub Bank for an 8-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 by maintaining elevated interest rates [3] Group 2: National Average CD Rates - The highest national average interest rate for CDs is 1.63% for a 1-year term, significantly lower than the best available rates [3] - Online banks and credit unions typically provide more competitive rates compared to traditional banks, contributing to the higher average rates observed [3] Group 3: Finding the Best CD Rates - It is advisable for consumers to shop around and compare CD rates from various financial institutions to find the best options [4] - Online banks often offer higher interest rates on CDs due to lower overhead costs, making them a preferred choice for consumers seeking competitive rates [4] - Consumers should check minimum deposit requirements and review account terms, including early withdrawal penalties and auto-renewal policies, to ensure alignment with their financial goals [4]