Best CD rates today, January 7, 2026: Lock in up to 4.1% APY

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.1% APY available from LendingClub, Sallie Mae Bank, and United Fidelity Bank [2] - The trend of falling CD rates has been observed, but they remain high by historical standards despite recent declines [7] Group 2: Historical Context - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [3] - The 2010s saw continued low rates due to the Fed's policies, with average rates on 6-month CDs falling to about 0.1% APY by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Fed gradually increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Economic Implications - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - The current economic environment shows a flattening or inversion of the yield curve, with the highest average CD rate now for a 12-month term, indicating uncertainty in future interest rates [8] Group 4: Choosing the Right CD - When selecting a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to ensure the best fit for individual needs [9]