While deposit account rates have been declining, consumers can still lock in competitive returns on certificates of deposit (CDs) and preserve their earning power. Unlike savings or money market accounts, where rates can shift at any time, a CD's APY is fixed for the full term—meaning today's elevated rates can be preserved even if the broader rate environment continues to fall. The best CDs available continue to offer rates of 4% APY or higher as of Tuesday, August 4, 2026.

Where to Find the Best CD Rates Today

CDs today typically offer rates significantly higher than traditional savings accounts. The best short-term CDs (six to 12 months) generally provide rates around 4% APY.

The highest CD rate currently available is 4.15% APY, offered by Synchrony Bank on its 14-month CD.

When evaluating offers, confirm that the institution is federally insured. FDIC coverage protects up to $250,000 per depositor, per insured bank, per ownership category, and the NCUA provides equivalent coverage of $250,000 at participating credit unions.

Historical CD Rate Trends

The 2000s were shaped by the dot-com bubble and, later, the global financial crisis of 2008. Although CD rates were relatively high in the early part of the decade, they began falling as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, following the financial crisis, the average one-year CD paid approximately 1% APY, while five-year CDs yielded less than 2% APY.

Declining CD rates persisted into the 2010s, particularly after the Great Recession of 2007–2009. The Federal Reserve's accommodative policies—especially its decision to hold its benchmark interest rate near zero—led banks to offer very low rates on CDs. By 2013, average rates on 6-month CDs had fallen to roughly 0.1% APY, and 5-year CDs returned an average of 0.8% APY.

Conditions shifted between 2015 and 2018, when the Fed began gradually raising rates. CD rates improved modestly during this period of economic expansion, bringing an end to nearly a decade of ultra-low returns. However, the COVID-19 pandemic in early 2020 prompted emergency rate cuts by the Fed, pushing CD rates to new record lows.

The landscape reversed after the pandemic as inflation surged. The Fed raised rates 11 times between March 2022 and July 2023, resulting in higher borrowing costs and, in turn, higher APYs on savings products including CDs.

By September 2024, the Fed determined that inflation was essentially under control and began cutting the federal funds rate. The Fed reduced rates three times in 2025, and CD rates steadily declined from their peak. Even with the Fed leaving interest rates unchanged through the first part of 2026, CD rates remain elevated by historical standards—though they are well below the 5%–5.5% APY peaks seen in 2023 and early 2024.

Understanding Today's CD Rate Environment

Traditionally, longer-term CDs have offered higher interest rates than shorter-term CDs, since locking funds away for an extended period carries greater risk—specifically, the opportunity cost of potentially higher rates in the future. Banks have historically compensated for this risk with higher rates.

However, this pattern does not hold in the current environment. The highest average CD rate is now on a 12-month term, indicating a flattening or inversion of the yield curve. Such conditions can arise during periods of economic uncertainty or when investors anticipate future interest rate declines.

For savers, this inversion has a practical implication: locking in a shorter-term CD today may yield more than a longer commitment, while still preserving the option to reinvest at maturity if rates rise again.

How to Choose the Best CD

Selecting a CD with a high APY is only one consideration. Several other factors can influence whether a particular CD suits your needs and affects your overall return:

Personal goals and timeline: Determine how long you are willing to commit your funds. CDs come with fixed terms, and early withdrawals may incur penalties. Common terms range from a few months to several years. The appropriate term depends on when you expect to need access to your money. Some savers use a strategy called CD laddering—dividing funds across multiple CDs with staggered maturity dates—to balance higher rates with periodic access to cash.

Type of financial institution: Rates can vary significantly across institutions. Beyond your current bank, research CD rates from online banks, local banks, and credit unions. Online banks often offer higher interest rates than traditional brick-and-mortar banks due to lower overhead costs. Ensure that any online bank you consider is FDIC-insured (or NCUA-insured for credit unions).

Account terms: Beyond the interest rate, review the full terms of the CD, including the maturity date and early withdrawal penalties. Also check whether there is a minimum deposit requirement and whether it fits your budget.

Inflation: While CDs offer safe, fixed returns, they may not always keep pace with inflation, particularly over longer terms. This factor is worth considering when deciding on the term and deposit amount.