If you’re in the market for a secure place to grow your savings, a certificate of deposit (CD) could be a great option for you. CD accounts typically offer higher interest rates than traditional checking and savings accounts, making them a popular choice for those looking to maximize their savings. However, CD rates can vary greatly, so it’s important to stay informed on where they stand and how to find the best rates available.
Currently, CD rates are relatively high compared to historical averages, despite experiencing a decline since the Federal Reserve began cutting its target rate last year. The good news is that there are several financial institutions, particularly online banks, that offer competitive rates of 4% APY and higher. As of now, the highest CD rate available is 4% APY, offered by Marcus by Goldman Sachs on its 1-year CD.
The Federal Reserve has been decreasing the federal funds rate in response to slowing inflation and an overall improved economic outlook. With three rate cuts in late 2024 totaling one percentage point, the Fed announced another rate cut in December 2025, with the possibility of more cuts in 2026. While the federal funds rate doesn’t directly impact deposit interest rates, they are correlated, meaning that when the Fed lowers rates, financial institutions typically follow suit. As a result, CD rates are beginning to fall again, making now a good time to secure a CD and lock in today’s best rates.
When opening a CD account, the process may vary by financial institution, but there are general steps to follow. First, research CD rates online to find the best offers. Consider factors like the CD’s term length, minimum opening deposit requirements, and fees to ensure the account meets your financial needs. Gather necessary documents such as your Social Security number, address, and identification to streamline the application process. Complete the application, which can often be done online, and fund the account once approved by transferring money from another account or mailing a check.
For step-by-step instructions on opening a CD account, visit our website for more information. Stay informed on the latest CD rates and make the most of your savings by locking in a competitive rate today.
