Best CD rates today, March 4, 2026 (Earn up to 4% 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 Marcus by Goldman Sachs offering the highest rate of 4% APY on its 1-year CD [2] - Historical trends show that average one-year CD rates fell to around 1% APY by 2009, with five-year CDs at less than 2% APY following the 2008 financial crisis [2] Group 2: Historical Context - The trend of falling CD rates continued into the 2010s, with average rates on 6-month CDs dropping to about 0.1% APY and 5-year CDs returning an average of 0.8% APY by 2013 [3] - Between 2015 and 2018, the Federal Reserve's gradual rate increases led to a slight improvement in CD rates, but the COVID-19 pandemic caused emergency rate cuts, resulting in new record lows for CD rates [4][5] Group 3: Recent Developments - Following the pandemic, the Federal Reserve hiked rates 11 times between March 2022 and July 2023, leading to higher APYs on savings products, including CDs [5] - As of September 2024, the Federal Reserve began cutting the federal funds rate, resulting in a steady decline of CD rates from their peak, although they remain high by historical standards [6] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates compared to shorter-term CDs, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [6][7] Group 5: Choosing the Best 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 [8]