Today’s CD rates remain above the national average, influenced by the Federal Reserve’s interest rate cuts in 2025. The highest CD rate is currently 4% APY, offered by Marcus by Goldman Sachs. Online banks and credit unions typically offer more competitive rates compared to traditional banks.

The national average interest rate for a 1-year CD is 1.61%, one of the highest in nearly two decades. The Federal Reserve’s efforts to combat inflation have kept interest rates elevated, contributing to the high CD rates. It’s important to choose a CD with a high APY and matching term length.

When considering a CD, shop around to compare rates from different financial institutions. Online banks often offer competitive rates due to lower overhead costs. Be mindful of minimum deposit requirements and review account terms, including early withdrawal penalties and auto-renewal policies.

To find the best CD rates, consider factors like online banks’ competitive rates, minimum deposit requirements, and account terms. With average CD rates at a high point, it’s a good time to explore options before locking in a rate.

Read more at Yahoo Finance: Best CD rates today, February 16, 2026 (Lock in up to 4% APY)