The Federal Reserve lowered the federal funds rate twice this year. As a result, deposit account rates are on the decline.The good news: You can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. In fact, the best CDs still pay rates above 4%. Read on for a snapshot of CD rates today and where to find the best offers.CDs today typically offer rates significantly higher than traditional savings accounts. As of December 2024, the best short-term CDs (six to 12 months) generally offer rates around 4.00% to 4.50% APY.Today, the highest CD rate 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD. There is a minimum opening deposit of $500 required.The following is a look at some of the best CD rates available today from our verified partners.See our picks for the best CD accounts and rates>>The 2000s were marked by the dot-com bubble and later, the global financial crisis of 2008. Though the early 2000s saw relatively higher CD rates, they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, in the aftermath of the financial crisis, the average one-year CD paid around 1% APY, with five-year CDs at 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 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. By 2013, average rates on 6-month CDs fell to about 0.1% APY, while 5-year CDs returned an average of 0.8% APY.However, things changed between 2015 and 2018, when the Fed started gradually increasing 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 reversed following the pandemic as inflation began to spiral out of control. This prompted the Fed to hike rates 11 times between March 2022 and July 2023. In turn, this led to higher rates on loans and higher APYs on savings products, including CDs.Fast forward to September 2024 — the Fed finally decided to cut the federal funds rate after it determined that inflation was essentially under control. Today, we’re beginning to see CD rates come down from their peak. Even so, CD rates remain high by historical standards.Take a look at how CD rates have changed since 2009: Traditionally, longer-term CDs have offered higher interest rates compared to shorter-term CDs. This is because locking in money for a longer period typically carries more risk (namely, missing out on higher rates in the future), which banks compensate for with higher rates.However, this pattern doesn’t necessarily hold today; the highest average CD rate is for a 12-month term. This indicate
Gio. Gen 9th, 2025
