Deposit account rates are on the decline. The good news: You can secure a competitive yield on a certificate of deposit (CD) today and preserve your earning power. In fact, the best cds they still pay rates above 4%. Read on for a snapshot of today’s CD rates and where to find the best deals.

Today’s CDs often offer significantly higher rates than traditional savings accounts. Today, the best short-term CDs (six to 12 months) generally offer rates around 4% to 4.5% APY.

Today, the highest CD rate is 4% APY. This rate offers it Marcus from Goldman Sachs on your 1 year CD.

Below are some of the best CD rates available today from our verified partners:

The 2000s were marked by the dot-com bubble and later the global financial crisis of 2008. Although the early 2000s saw relatively higher CD rates, they began to fall as the economy slowed and the Federal Reserve lowered its target rate to stimulate growth. In 2009, in the wake of the financial crisis, the average one-year CD was paying around 1% APY, with five-year CDs paying less than 2% APY.

The downward trend in CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Fed’s policies to stimulate the economy (in particular, its decision to keep its benchmark interest rate near zero) led banks to offer very low rates on CDs. In 2013, average rates on 6-month CDs fell to 0.1% APY, while 5-year CDs returned an average of 0.8% APY.

However, things changed between 2015 and 2018, when the Fed gradually increased rates again. At this point, there was a slight improvement in CD rates as the economy expanded, marking the end of nearly a decade of ultra-low rates. However, the onset of the COVID-19 pandemic in early 2020 led to emergency rate cuts by the Fed, causing CD rates to fall to new record lows.

The situation was reversed after the pandemic as inflation began to spiral out of control. This led 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 start cutting the federal funds rate after determining that inflation was essentially under control. In 2025, it announced three additional rate cuts. Today, we see CD rates steadily declining from their peak. Even so, CD rates remain high by historical standards.

Take a look at how CD rates have changed since 2009:

Long-term CDs have traditionally offered higher interest rates compared to short-term CDs. This is because locking up money for a longer period usually carries more risk (ie missing out on higher rates in the future), which banks compensate for with higher rates.

However, this pattern does not necessarily hold today; the highest average CD rate is for a 12-month term. This indicates a flattening or inversion of the yield curve, which can happen in uncertain economic times or when investors expect future interest rates to decline.

Read more: Short-Term or Long-Term CDs: Which Is Best for You?

when open a CDchoosing one with a high APY is only one piece of the puzzle. There are other factors that can affect whether a particular CD is best for your needs and your overall performance. Consider the following when choosing a CD:

• Your goals: Decide how long you are willing to lock up your funds. CDs have fixed terms and withdrawing money before the term ends can result in penalties. Common terms range from a few months to several years. The right time frame for you depends on when you anticipate needing access to your money.

• Type of financial institution: Fees can vary significantly between financial institutions. Don’t just check with your current bank; research CD rates from online banks, local banks and credit unions. Online banksin particular, they often offer higher interest rates than traditional banks because they have lower overhead costs. However, make sure that any online bank you consider is Insured by the FDIC (or insured by NCUA for credit unions).

• 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, does it fit your budget.

• Inflation: While CDs can offer safe and fixed returns, they may not always follow through inflationespecially for longer terms. Keep this in mind when deciding the term and amount to invest.