CD rates are decreasing but still historically high, with the best rate at 4.4% APY.

From Yahoo Finance: 2025-05-20 06:00:00

In 2024, the Federal Reserve lowered the federal funds rate, causing deposit account rates to decline. However, you can still lock in competitive CD rates above 4% today. The highest CD rate is 4.4% APY on a 14-month CD from Marcus by Goldman Sachs. Minimum deposit required is $500.

Since the 2000s, CD rates have fluctuated due to economic conditions. Rates were higher in the early 2000s but fell after the 2008 financial crisis. By 2013, average rates on 6-month CDs were around 0.1% APY. The trend continued until the Fed started raising rates between 2015 and 2018.

After 11 rate hikes due to inflation concerns, the Fed cut rates in 2024. CD rates are now starting to decrease but still remain high historically. Longer-term CDs traditionally offer higher rates, although the highest average CD rate today is for a 12-month term, indicating a flattening yield curve.

When opening a CD, consider factors like financial goals, type of institution, account terms, and inflation. Choose a CD with a high APY that fits your needs and budget. Research rates from online banks, local banks, and credit unions to find the best offer for your financial goals.



Read more at Yahoo Finance: Best CD rates today, May 20, 2025 (Lock in up to 4.4% APY)