Deposit account rates are declining, but you can secure a competitive return with a certificate of deposit (CD) above 4%. Learn where to find the best CD rates and lock in your earning power today.

Short-term CDs offer rates around 4% to 4.5% APY, higher than traditional savings accounts. The highest CD rate is currently 4.25% APY from United Fidelity Bank on its 2-year CD.

The 2000s saw falling CD rates due to the dot-com bubble and financial crisis. Rates remained low until 2018 when the Fed increased rates. The pandemic led to record lows in CD rates, but inflation caused a recent increase in rates.

As of September 2024, the Fed began cutting rates post-pandemic, impacting CD rates. Despite the decrease, CD rates are still high historically. Longer-term CDs traditionally offer higher rates, but currently, 12-month CDs have the highest average rate.

Consider factors like financial institution type and account terms when opening a CD. Research rates from online banks and local institutions, ensuring they are FDIC-insured. Understand the maturity date, withdrawal penalties, and minimum deposit requirements before investing in a CD.

Read more at Yahoo Finance: Lock in up to 4.25% APY today