From Yahoo Finance: 2025-03-25 06:00:00

In 2024, the Federal Reserve cut the federal funds rate, causing deposit account rates to decline. However, you can still secure a competitive return with a certificate of deposit (CD) offering rates above 4%. The best short-term CDs currently offer rates around 4.00% to 4.50% APY.

Marcus by Goldman Sachs and LendingClub are offering the highest CD rates at 4.50% APY. Marcus requires a $500 minimum opening deposit for its 14-month CD, while LendingClub’s 10-month CD has a $2,500 minimum deposit.

Since the dot-com bubble in the 2000s and the financial crisis of 2008, CD rates have fluctuated. The economy’s expansion led to higher CD rates between 2015-2018, but the COVID-19 pandemic caused rates to plummet. The Fed’s recent rate cuts have brought CD rates back down.

Longer-term CDs traditionally offer higher rates, but the highest average CD rate is currently for a 12-month term. This could indicate uncertain economic times or expectations of declining future interest rates. When opening a CD, consider factors like your goals, financial institution, account terms, and inflation’s impact on returns.



Read more at Yahoo Finance: CD rates today, March 25, 2025 (Lock in up to 4.50% APY)