Deposit account rates are declining, but you can lock in competitive returns with a certificate of deposit (CD) at rates above 4%. The highest CD rate currently sits at 4.2% APY with United Fidelity Bank offering it on their 2-year CD.

CD rates have fluctuated over the years, with the 2000s seeing higher rates due to economic conditions. The trend of falling rates continued into the 2010s, but a slight improvement occurred between 2015 and 2018 as the economy expanded.

After the pandemic, the Fed hiked rates, leading to higher APYs on savings products, including CDs. However, in September 2024, the Fed started cutting rates due to inflation, causing CD rates to decline from their peak.

Choosing a CD with a high APY is essential, but other factors like financial institution type, account terms, and inflation rate should also be considered. Longer-term CDs traditionally offer higher rates, but this pattern may not hold true in uncertain economic times.

Consider your goals, financial institution type, account terms, and inflation rate when choosing a CD. Different factors can impact your overall return, so research thoroughly before making a decision.

Read more at Yahoo Finance: Lock in up to 4.2% APY