Deposit account rates are declining, but you can still get competitive returns with a certificate of deposit (CD). The best CDs are paying rates above 4%, with short-term CDs offering rates around 4% to 4.5% APY. LendingClub currently offers the highest CD rate at 4.45% APY on an 8-month CD. CD rates have fluctuated over the years, with rates falling after the dot-com bubble and 2008 financial crisis, then gradually increasing from 2015 to 2018. The Fed’s recent rate cuts have caused CD rates to decline slightly, but they still remain high compared to historical standards.

When opening a CD, consider factors like your financial goals, the type of financial institution, account terms, and inflation rates. Longer-term CDs traditionally offer higher interest rates, but currently, the highest average CD rate is for a 12-month term. Research CD rates from online banks, local banks, and credit unions to find the best offer for your needs. While CDs offer safe returns, they may not always keep pace with inflation, so consider this when choosing a term and amount to invest.

Read more at Yahoo Finance: Lock in up to 4.45% APY