Banks are offering varying CD rates, with some still competitive despite recent Fed rate cuts. Top rates can reach 4% APY, especially for shorter terms. The highest CD rate as of December 19, 2025, is 4.1% APY from Sallie Mae Bank and LendingClub Bank. Compare these rates to national averages, which are significantly lower.

Online banks and credit unions are offering competitive CD rates as well, with online banks often providing higher rates due to lower overhead costs. Credit unions, as not-for-profit cooperatives, also offer favorable rates. CDs are considered safe and stable but may not provide the growth potential of market investments for long-term goals.

Consider your savings goals before investing in a CD. While CDs provide security and fixed rates, early withdrawals may incur penalties. For flexible access to funds, high-yield savings or money market accounts may be better options. CDs may not offer the growth potential of market investments for long-term goals like retirement.

Read more at Yahoo Finance: Best CD rates today, December 19, 2025 (up to 4.1% APY return)