Savings account rates are falling — but the good news is that you can get a competitive return on a certificate of deposit (CD) today and keep your earning power. In fact, the best CDs still pay rates above 4%. Read on for a snapshot of CD prices today and where to find the best deals.
CDs today generally offer significantly higher interest rates than traditional savings accounts. Currently, the best short-term CDs (six to 12 months) typically offer rates around 4% APY.
As of March 3, 2026, the highest CD rate is 4% APY. This rate is quoted by Marcus from Goldman Sachs on its 1-year CD.
Below is a look at some of today’s best CD prices from our verified partners.
The 2000s were marked by the dot-com bubble and the subsequent 2008 global financial crisis. Although CD rates were relatively high in the early 2000s, they began to decline as the economy slowed and the Federal Reserve lowered its target to stimulate growth. Until 2009, in the wake of the financial crisis, the average one-year CD paid about 1% APY, with five-year CDs less than 2% APY.
The downward trend in CD rates continued in 2010, especially after the Great Recession of 2007-2009. The Fed’s policies to stimulate the economy (specifically, its decision to keep its benchmark interest rate close to zero) have led banks to offer extremely low rates on CDs. In 2013, the average rate 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 gradually started raising rates again. During this time, CD rates improved slightly as the economy expanded, marking the end of nearly a decade of extremely low rates. However, the onset of the COVID-19 pandemic in early 2020 led to emergency rate cuts by the Fed, which dropped CD rates to new record lows.
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. Consequently, this led to higher loan rates and higher APYs on savings products, including CDs.
Fast forward to September 2024 – the Fed finally decides to start cutting the federal funds rate after realizing that inflation is essentially under control. Fed rates are cut three times by 2025 and we see CD rates steadily falling below their peak. Even so, CD prices are high by historical standards.
Take a look at how CD prices have changed since 2009:
Traditionally, long-term CDs offer higher interest rates than short-term CDs. This is because locking up money for a long period of time usually carries more risk (ie missing out on higher rates in the future), which banks compensate with higher rates.
However, this pattern is not relevant today; The highest average CD rate is for a 12-month period. It indicates the flattening or inflection of the yield curve, which can occur in uncertain economic times or when investors expect future interest rate declines.
Read more: Short or Long Term CD: Which is Better for You?
When opening a CD, choosing the one with the highest APY is only one part 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 points when choosing a CD:
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Your goals: Decide how long you want 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 term for you depends on when you expect to need access to your money.
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Type of financial institution: Rates can vary significantly between financial institutions. Don’t just stick with your current bank; Research CD rates from online banks, local banks, and credit unions. Online banks, in particular, often 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, it fits your budget.
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Inflation: While CDs can offer safe, steady returns, they may not always keep pace with inflation, especially over the long term. Keep this in mind when deciding on the duration and amount of investment.
