Best CD rates today, February 4, 2026 (Earn up to 4.05% 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% APY from Marcus by Goldman Sachs for a 1-year term, requiring a minimum deposit of $500 [2] - CD rates today are significantly higher than traditional savings accounts, indicating a favorable environment for investors seeking fixed returns [2] Group 2: Historical Context - CD rates experienced a decline following the 2008 financial crisis, with average one-year CDs paying around 1% APY by 2009 and five-year CDs at less than 2% APY [3] - The trend of falling CD rates continued into the 2010s, with average rates on 6-month CDs dropping to about 0.1% APY by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Federal Reserve began increasing rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Federal Reserve started cutting the federal funds rate, leading to a steady decline in CD rates from their peak, although they remain high by historical standards [7] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates, but the current highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation considerations [9]