Deposit account rates are declining, but the good news is that you can lock in a competitive return on a certificate of deposit (CD) today and preserve your purchasing power. In fact, the best CDs still pay rates of 4% or more. Read on for a rundown of current CD rates and where to find the best deals.
Where are the best CD rates today?
Today, CDs typically offer significantly 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 CD rate is 4% APY. This rate is offered by Marcus by Goldman Sachs on their 9-month CD.
Below are some of the best CD rates currently available from our verified partners.
Historical CD rates
The 2000s were marked by the dot-com bubble and, later, the global financial crisis of 2008. Although relatively higher CD rates were seen in the early 2000s, they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. In 2009, after the financial crisis, the average one-year CD paid about 1% APY, while five-year CDs paid less than 2% APY.
The downward trend in CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Federal Reserve’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 about 0.1% APY, while 5-year CDs averaged 0.8% APY.
However, things changed between 2015 and 2018, when the Federal Reserve began gradually raising rates again. At that time, 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 prompted emergency rate cuts by the Federal Reserve, causing CD rates to fall to new all-time lows.
The situation reversed after the pandemic when inflation began to get out of control. This led to the Federal Reserve raising rates 11 times between March 2022 and July 2023. In turn, this led to higher rates for loans and higher APYs for savings products, including CDs.
Fast forward to September 2024: The Federal Reserve finally decided to start cutting the federal funds rate after determining that inflation was essentially under control. The Federal Reserve cut rates three times in 2025 and we saw CD rates steadily decline from their peak. Even if the Federal Reserve keeps interest rates unchanged so far in 2026, CD rates remain high by historical standards.
Take a look at how CD rates have changed since 2009:
Understand Current CD Rates
Traditionally, longer-term CDs have offered higher interest rates compared to shorter-term CDs. This is because locking up money for a longer period typically carries more risk (i.e. 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 occur during uncertain economic times or when investors expect future interest rates to fall.
Read more: Short-term or long-term CD: which is better for you?
How to choose the best CD rates
When opening a CD, choosing one with a high APY is just one piece of the puzzle. There are other factors that can affect whether a particular CD is best 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 keep your funds. CDs come with fixed terms and withdrawing your money before the term ends can incur penalties. Common terms range from a few months to several years. The right term for you depends on when you anticipate you will need to access your money.
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Type of financial institution: Rates 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 banks, in particular, typically offer higher interest rates than traditional banks because they have lower overhead costs. However, make sure any online bank you consider 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 to see if there is a minimum deposit requirement and, if so, that it fits your budget.
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Inflation: While CDs can offer secure, fixed returns, they may not always keep pace with inflation, especially over longer terms. Consider this when deciding the term and amount to invest.