Best CD rates today, January 31, 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 available as of January 31, 2026, is 4% APY, offered by Marcus by Goldman Sachs for a one-year CD [2] CD Rates Overview - Best CD rates are currently found in shorter terms, particularly around one year or less, with online banks and credit unions leading in competitive rates [2] - The amount of interest earned from a CD is determined by the annual percentage rate (APY), which reflects total earnings after one year, factoring in the base interest rate and compounding frequency [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD with 1.61% APY would yield a total balance of $1,016.22 after one year, including $16.22 in interest [3] - Conversely, a one-year CD with a 4% APY would grow the same investment to $1,040.74, resulting in $40.74 in interest [3] Deposit Impact on Earnings - Increasing the deposit amount in a CD significantly enhances potential earnings; for example, a $10,000 deposit in a one-year CD at 4% APY would result in a total balance of $10,407.42, yielding $407.42 in interest [4] Types of CDs - Various types of CDs offer different benefits, which may include accepting a lower interest rate for added flexibility [4] - Bump-up CD: Allows for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - No-penalty CD: Enables early withdrawal without penalties [4] - Jumbo CD: Requires a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal [4] - Brokered CD: Purchased through a brokerage, potentially offering higher rates or flexible terms but carries more risk and may not be FDIC-insured [4]