Deposit account rates have begun to decline, but competitive certificate of deposit rates persist, reaching as high as 4% APY from Goldman Sachs and others.

Key Highlights

  • The highest certificate of deposit (CD) rate as of June 24, 2026, is 4% APY from Marcus by Goldman Sachs.
  • Current competitive shorter-term CDs yield between 4% and 4.5% APY, appealing to cautious investors.
  • Historical CD rates have shown a significant decline from an average of 1% APY in 2009 following the financial crisis.
  • The Federal Reserve has cut rates three times in 2025, contributing to downward pressure on deposit account rates.

Current Market Overview

As of June 24, 2026, the landscape for certificates of deposit (CDs) is marked by competitive rates, with some financial institutions offering returns of up to 4% APY. This comes amid a general trend of declining deposit account rates, making the performance of these CDs particularly attractive for investors seeking shelter from market volatility.

CD Rate Trends

Historically, the average CD rate experienced a steep decline following the financial crisis of 2008, where various one-year CDs paid around 1% APY. Moreover, the average yield on five-year CDs dipped to less than 2% APY. As the Federal Reserve (Fed) implemented measures to stimulate economic growth through rate cuts, these rates fell to unprecedented lows by 2013, with six-month CDs averaging only around 0.1% APY.

Fed Policy Impact

The recent trajectory of CD rates is closely tied to the Fed's monetary policy interventions. After aggressively raising rates from March 2022 to July 2023 to combat inflation, the Fed began cutting rates again in 2024, adjusting to what it considered controlled inflation. Following three additional cuts in 2025, deposit rates have declined, yet remain higher than historical averages, indicating ongoing strength in the banking sector.

Short-Term vs. Long-Term CDs

Market dynamics typically dictate that longer-term CDs offer higher interest rates compared to their shorter-term counterparts, reflecting the increased risk associated with locking in funds. However, the present scenario is somewhat atypical, as the highest average rates currently belong to 12-month CDs. This inversion suggests cautious positioning by investors, anticipating future declines in interest rates.

Navigating Competitive Offers

Investors looking for CDs today should evaluate their cash flow needs and compare rates across different financial institutions. Offers vary, especially between online banks and traditional establishments, given that online banks often provide higher APYs due to lower operational costs. Critical factors include understanding withdrawal penalties and ensuring FDIC insurance for added security.

Inflation Considerations

While CDs present a low-risk avenue with locked-in returns, investors must remain vigilant regarding inflation. If inflation rates surge, the purchasing power of interest earned on CDs could erode, especially for longer terms. As such, investors need to assess their investment horizon and potential economic conditions while selecting suitable CDs.

Investor Insights

For investors, the current competitive environment surrounding CDs could serve as a buffer against potential economic downturns. Observing further actions from the Federal Reserve regarding interest rates will be crucial, as these decisions will directly influence the future landscape of banking products and investment opportunities in the sector.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.