Deposit account rates are declining, but you can lock in a competitive return on a certificate of deposit (CD) today. The best CDs still pay rates above 4%, offering a snapshot of today’s rates and where to find the best offers.

Currently, short-term CDs (six to 12 months) generally offer rates around 4% to 4.5% APY, significantly higher than traditional savings accounts.

The highest CD rate today is 4% APY, offered by Marcus by Goldman Sachs on its 1-year CD, showcasing some of the best CD rates available from verified partners.

In the 2000s, CD rates fell due to the dot-com bubble and financial crisis, hitting an average one-year CD rate of around 1% APY by 2009, with five-year CDs at less than 2% APY.

The trend of falling CD rates continued into the 2010s following the Great Recession, with average rates on 6-month CDs at about 0.1% APY and 5-year CDs at 0.8% APY by 2013.

Between 2015 and 2018, the Fed increased rates slightly, improving CD rates as the economy expanded. However, the COVID-19 pandemic in 2020 led to emergency rate cuts and record-low CD rates.

Following the pandemic, the Fed hiked rates 11 times between March 2022 and July 2023, leading to higher rates on loans and savings products, including CDs.

As of September 2024, the Fed started cutting rates after inflation stabilized, with CD rates coming down from their peak but remaining high by historical standards.

Longer-term CDs traditionally offer higher rates, but the highest average CD rate today is for a 12-month term, indicating a flattening or inversion of the yield curve.

When opening a CD, consider factors like your goals, type of financial institution, account terms, and inflation to ensure it aligns with your needs and offers the best return.

Read more at Yahoo Finance: Lock in up to 4% APY today