Savings account rates are falling – but the good news is that you can lock in competitive returns with a certificate of deposit (CD) today and preserve your income. In fact, the best CDs still pay rates of 4% or more. Read on for an overview of CD rates today and where to find the best deals.
Where are the best CD prices today?
CDs today often offer much higher rates than traditional savings accounts. Currently, the best short-term CDs (six to 12 months) typically offer rates around 4% APY.
Today, the highest rate for CDs is 4% APY. This rate is given to Marcus by Goldman Sachs on its 9-month CD.
The following is a look at some of the best CD rates available today from our verified partners.
Historical CD prices
The 2000s were marked by the dot-com bubble and later, the global financial crisis of 2008. Although the early 2000s saw high CD rates, they began to decline as the economy slowed and the Federal Reserve lowered its target rate to stimulate growth. In 2009, after the financial crisis, a one-year CD paid about 1% APY, and five-year CDs less than 2% APY.
The trend of falling CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Fed’s economic stimulus policies (in particular, its decision to keep interest rates close to zero) have caused banks to offer very low rates on CDs. In 2013, average rates on 6-month CDs fell to around 0.1% APY, while five-year CDs returned an average of 0.8% APY.
However, things changed between 2015 and 2018, when the Fed slowly began to increase rates again. At this point, there has been little improvement in CD rates as the economy has grown, marking the end of nearly a decade of very low rates. However, the onset of the COVID-19 pandemic in early 2020 led to an emergency rate cut by the Fed, causing CD rates to drop significantly.
The situation changed following the pandemic as inflation began to spiral out of control. This prompted the Fed to raise rates 11 times between March 2022 and July 2023. In turn, this led to higher loan rates and higher APYs on savings products, including CDs.
Fast forward to September 2024 – the Fed finally decided to lower the federal funds rate after deciding that inflation was under control. The Fed cut rates three times by 2025, and we saw CD rates gradually decline from their peak. Even if the Fed leaves interest rates unchanged through 2026, CD rates remain high by historical standards.
Check out how CD prices have changed since 2009:
Understanding today’s CD prices
Traditionally, long-term CDs have offered higher interest rates compared to short-term CDs. This is because locking up money for longer periods of time tends to carry more risk (ie, missing out on higher rates in the future), which banks compensate for with higher rates.
However, this pattern does not apply today; average CD rate for a 12-month period. This indicates the flattening or inflection of the yield curve, which may occur in uncertain economic times or when investors expect future interest rates to decline.
Read more: Short-term or long-term CD: Which one is right for you?
How to choose the best CD prices
When opening a CD, choosing the one with the highest APY is one piece of the puzzle. There are other factors that can affect whether a particular CD is right for your needs and your overall return. Consider the following when choosing a CD:
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Your goals: Decide how long you are willing to lock up your funds. CDs come with fixed terms, and withdrawing your money before the end of the term can result in penalties. Common terms range from a few months to a few years. The right time for you depends on when you expect to need access to your money.
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Type of financial institution: Prices can vary greatly from financial institution to financial institution. Don’t just check your current bank; research CD rates from online banks, local banks, and credit unions. Online banks, in particular, tend to offer higher interest rates than traditional brick-and-mortar banks because they have lower overhead costs. However, make sure that any online bank you are considering is FDIC-insured (or NCUA-insured for credit unions).
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Account terms: Beyond the interest rate, understand the terms of the CD, including the maturity date and withdrawal penalties. Also, check if there is a minimum deposit requirement, and if so, is it compatible with your budget.
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Inflation: While CDs can provide a safe, fixed return, they may not always keep pace with inflation, especially over the long term. Consider this when deciding the time and amount to invest.
