The Federal Reserve has cut its federal funds rate three times in 2025, making now a good time to lock in a competitive CD rate before rates fall further. CD rates vary widely, so it’s important to shop around for the best rate. Online banks and credit unions typically offer the top CD rates on shorter terms.

As of January 24, 2026, the highest CD rate is 4% APY, offered by Marcus by Goldman Sachs on its 1-year CD. The amount of interest you can earn from a CD depends on the annual percentage rate (APY) and how often interest compounds. The more you deposit in a CD, the more you stand to earn in interest.

When choosing a CD, consider factors beyond just the interest rate. There are different types of CDs, like Bump-up CDs, No-penalty CDs, Jumbo CDs, and Brokered CDs, each offering different benefits. Some CDs may offer more flexibility but come with a slightly lower interest rate. It’s important to choose the right CD for your financial goals.

Read more at Yahoo Finance: Best CD rates today, January 24, 2026 (best account provides 4% APY)