Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best rates exceeding 4% [1] Group 1: Current CD Rates - The best short-term CDs (6 to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.15% APY from First National Bank of America for a 7-month CD [2] - CDs generally provide higher rates than traditional savings accounts, making them an attractive option for savers [2] Group 2: Historical Context - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [3] - The trend of falling CD rates continued into the 2010s, with average rates dropping to about 0.1% APY for 6-month CDs by 2013 [4] - A slight recovery in CD rates occurred between 2015 and 2018 as the Fed gradually increased 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 Fed 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 Fed has started cutting the federal funds rate, leading to a gradual decrease 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 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 [9]

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 4.1% APY from various institutions [2] - Institutions offering the highest CD rates include Sallie Mae, Marcus by Goldman Sachs, Synchrony Bank, and LendingClub [2] Group 2: Historical CD Rate Trends - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [4] - 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 [5] - Between 2015 and 2018, CD rates improved slightly as the Fed increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [6] - Following the pandemic, the Fed raised rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [7] Group 3: Understanding Today's CD Rates - Traditionally, longer-term CDs offered higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8][9] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation [10]

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 4.1% APY available from Marcus by Goldman Sachs, Sallie Mae, and Synchrony [2] - The trend of falling CD rates has reversed since the pandemic, with the Federal Reserve hiking rates 11 times between March 2022 and July 2023, leading to higher APYs on savings products, including CDs [6] Group 2: Historical Context - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, reaching around 1% APY for one-year CDs by 2009 [3] - The 2010s saw continued low rates due to the Fed's near-zero benchmark interest rate policy, with average rates for 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 Fed gradually increased rates, but the onset of the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [7][8] - When choosing 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 [9]

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] CD Rates Overview - Current best short-term CDs (6 to 12 months) offer rates around 4% to 4.5% APY, with the highest rate at 4.4% APY from LendingClub for an 8-month CD as of October 8, 2025 [2] - Historical trends show that CD rates were higher in the early 2000s but fell significantly after the 2008 financial crisis, with average one-year CDs at around 1% APY by 2009 [2] - The trend of falling CD rates continued into the 2010s, with average rates for 6-month CDs dropping to about 0.1% APY by 2013 [3] Economic Impact on CD Rates - The Federal Reserve's policies, including keeping benchmark interest rates near zero, led to very low CD rates post-Great Recession [3] - A slight improvement in CD rates occurred between 2015 and 2018 as the Fed gradually increased rates, but the COVID-19 pandemic caused emergency rate cuts, leading to new record lows [4] - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [5] Current Trends and Future Expectations - As of September 2024, the Fed began cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [6] - Traditionally, longer-term CDs offered higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [7] 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]