Deposit account rates are declining, but you can secure a competitive return with a certificate of deposit (CD) above 4%. The highest CD rate is currently 4.1% APY offered by Marcus by Goldman Sachs, Sallie Mae, and Synchrony on various terms.

In the 2000s, CD rates were higher but fell after the 2008 financial crisis. Rates remained low in the 2010s due to Fed policies. From 2015-2018, rates improved, but the pandemic caused a decline. Recently, the Fed raised rates, leading to higher CD rates.

As of September 2024, the Fed began cutting rates with the second cut in 2025, causing CD rates to decrease. Despite this, rates are historically high. Longer-term CDs traditionally offer higher rates, but currently, 12-month CDs have the highest average rate.

When opening a CD, consider factors like your goals, financial institution type, account terms, and inflation. Research rates from various institutions, including online banks, and ensure the bank is 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 4.1% APY