Best CD rates today, January 29, 2026 (lock in up to 4% APY)

Core Insights - CD rates are currently higher than historical averages, with the best rates reaching 4% APY, particularly from online banks [2][3] - The Federal Reserve has been cutting its target rate, leading to a decline in CD rates since last year, with predictions of further cuts in 2026 [2][4] Group 1: Current CD Rates - The highest CD rate available today is 4% APY, offered by Marcus by Goldman Sachs for its 1-year CD [2] - Several financial institutions are providing competitive rates of 4% APY and above, especially among online banks [2] Group 2: Federal Reserve Impact - The Federal Reserve began decreasing the federal funds rate due to slowing inflation and an improved economic outlook, cutting it three times in late 2024 by a total of one percentage point [3] - The correlation between the federal funds rate and deposit interest rates means that as the Fed lowers rates, CD rates typically follow suit [5] Group 3: Opening a CD - The process for opening a CD account includes researching competitive rates, choosing an account that meets financial needs, preparing necessary documents, completing the application, and funding the account [6] - It is important to consider the CD's term length and minimum deposit requirements to avoid early withdrawal penalties [6]