The Federal Reserve has cut the federal funds rate three times in 2024, leading to a decline in deposit account rates. However, you can still lock in competitive rates above 4% with a certificate of deposit (CD) today. Find the best offers and where to get them.

CDs today offer rates around 4.00% to 4.50% APY for short-term options. The best CD rate as of August 6, 2025, is 5.5% APY on a 5-year CD from Gainbridge®, requiring a $1000 minimum deposit.

Historically, CD rates fluctuated through the 2000s and 2010s due to economic factors. The Fed’s policies greatly influenced CD rates, leading to lows after the financial crisis and eventual increases until the COVID-19 pandemic.

Following the pandemic, the Fed hiked rates, resulting in higher CD rates. However, in September 2024, the Fed began cutting rates due to controlled inflation, causing CD rates to decrease from their peak.

When opening a CD, consider factors like your financial goals, the type of institution offering the CD, account terms, and inflation rates. Research rates from various institutions, including online banks, to find the best option for your needs.

Read more at Yahoo Finance: Best CD rates today, August 6, 2025 (Lock in up to 5.5% APY)