Deposit account rates are declining, but you can still lock in rates above 4% with a CD. The best short-term CDs offer around 4% to 4.5% APY. Marcus by Goldman Sachs currently offers the highest CD rate at 4% APY. CD rates have fluctuated over the years due to economic conditions and Fed policies.

The Fed’s rate hikes in response to inflation led to higher CD rates, but recent rate cuts have caused a decline. Despite this, CD rates remain high historically. Longer-term CDs traditionally offer higher rates, but currently, the highest average CD rate is for a 12-month term, possibly due to economic uncertainty.

When opening a CD, consider factors like your goals, the type of financial institution offering the CD, account terms, and inflation. Research CD rates from various institutions, including online banks, and ensure the bank is FDIC-insured. Understand withdrawal penalties and minimum deposit requirements before investing in a CD.

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