CD Yields Remain Above 4% as Savers Look to Secure Rates Before Further Fed Cuts

Certificate of deposit (CD) rates continue to exceed historical norms, giving depositors a limited window to capture returns that may soon fade. As of December 22, 2025, the top annual percentage yield (APY) in the market stands at 4.1%, available on two promotional offers: a 15-month CD from Sallie Mae Bank and an eight-month CD from LendingClub Bank. These products outpace the latest Federal Deposit Insurance Corporation (FDIC) national averages by a wide margin and highlight how aggressive online banks remain despite a shifting interest-rate landscape.

Fed policy keeps the spotlight on deposit accounts

The Federal Reserve cut its benchmark rate three times during 2024 and delivered a third reduction for 2025 earlier this month. Each move filters through to consumer banking products, gradually reducing what institutions are willing to pay on deposits. Although policy makers continue to signal a measured pace of easing, additional adjustments are possible in the new year. That prospect is prompting many savers to lock in current yields before they move lower.

How today’s leading offers compare with the averages

According to FDIC data compiled in November 2025, the average 12-month CD yields 1.63%, the highest national figure across tracked terms. Even so, that average is well below the promotional 4.1% rate now available. In fact, most products on the market return at least two percentage points less than the current leaders, underscoring the benefit of shopping widely—especially among online institutions and credit unions that typically carry lower overhead and can share the savings with customers.

Snapshot of standout CDs on December 22, 2025

• Sallie Mae Bank: 15-month term, 4.1% APY
• LendingClub Bank: eight-month term, 4.1% APY

Both accounts are federally insured up to applicable limits. While interest is the primary draw, depositors should also weigh early-withdrawal penalties, automatic renewal policies, and minimum opening balances before committing funds.

Key considerations when selecting a CD

Choosing the right certificate hinges on more than just the headline yield. Financial planners generally recommend matching the term to a specific goal, ensuring that money will not be needed before maturity. Early withdrawals can trigger penalties that erode—or completely negate—earned interest.

Minimum balance requirements also vary widely. Some online banks accept deposits as low as $250, whereas certain high-yield specials demand $5,000 or more to qualify for the advertised rate. Consumers should verify that their available funds meet any threshold before opening an account.

Account holders may additionally encounter automatic renewal clauses. If no action is taken during the grace period after maturity, many banks will roll the balance into a new CD—often at a lower prevailing rate. Awareness of these policies helps savers avoid being locked into less attractive terms.

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Steps to capture the best available rate

1. Compare multiple providers: Rates can differ significantly from one institution to another. Using online comparison tools and checking both large and niche players can reveal superior offers.
2. Prioritize online banks and credit unions: Digital institutions frequently lead the market because of reduced operating costs.
3. Align the deposit amount with the requirement: Verify that the intended investment meets or exceeds any minimum necessary to earn the advertised APY.
4. Review flexibility features: Some products, such as no-penalty CDs, allow withdrawals without forfeiting interest. These can be attractive for savers who want liquidity alongside a competitive rate.

Why locking in matters now

Though current yields remain high relative to long-term norms, the momentum is already shifting. The Fed’s cumulative rate cuts have begun to put downward pressure on deposit pricing, and additional policy easing would likely accelerate the decline. Consequently, savers waiting for still higher APYs risk missing the peak and may face markedly lower rates in the months ahead.

For those comfortable setting aside funds for a defined period, today’s 4.1% offers represent an opportunity to secure a return that surpasses inflation projections and short-term Treasury yields. Even shorter-term CDs, such as LendingClub Bank’s eight-month product, allow investors to benefit from elevated rates without committing capital for several years.

Before signing, depositors should conduct a thorough review of each institution’s disclosures, understand any potential fees, and ensure that accounts are covered by federal insurance. Taking these steps helps preserve principal and maximize the benefit of an unusually favorable rate environment that may not last.

Crédito da imagem: Getty Images