Best CD rates today, January 17, 2026 (best account provides 4% APY)

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2025, making it a critical time for investors to lock in competitive CD rates before potential further declines [1] - The highest CD rate currently available is 4% APY, offered by Marcus by Goldman Sachs for a one-year CD as of January 17, 2026 [2] CD Rates Overview - Best CD rates are generally found in shorter terms of around one year or less, with online banks and credit unions leading in competitive offers [2] - The amount of interest earned from a CD is determined by the annual percentage rate (APY), which accounts for the base interest rate and compounding frequency [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD with 1.63% APY would yield a total balance of $1,016.42 after one year, including $16.42 in interest [3] - Conversely, a one-year CD with a 4% APY would result in a total balance of $1,040.74, yielding $40.74 in interest [3] Deposit Impact on Earnings - A deposit of $10,000 in a one-year CD at 4% APY would grow to $10,407.42 at maturity, resulting in $407.42 in interest earned [4] Types of CDs - Bump-up CDs allow for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - No-penalty CDs permit early withdrawal without penalties, providing more flexibility [4] - Jumbo CDs require higher minimum deposits (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal in the current environment [4] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms, but they carry more risk and may not be FDIC-insured [4]