Looking for the best CD rates? Several banks are offering competitive rates of 4% APY and up, especially online banks. The highest CD rate today is 4% APY, offered by Marcus by Goldman Sachs on its 1-year CD. CD rates have been declining since the Federal Reserve began lowering its target rate in 2024.

The Federal Reserve has cut its target rate three times in late 2024 by a total of one percentage point. Additional rate cuts could be on the horizon in 2026. When the Fed lowers rates, financial institutions typically follow suit, affecting CD rates. Now may be a good time to lock in today’s best rates.

When opening a CD account, research CD rates online to find the best offers. Consider factors like term length, minimum deposit requirements, and fees. Have necessary documents ready, like your Social Security number and ID, to streamline the application process. Once approved, fund the account by transferring money from another account or mailing a check.

Read more at Yahoo Finance: Best CD rates today, February 5, 2026 (lock in up to 4% APY)