Goldman Sachs (NYSE: GS) is offering a 14-month certificate of deposit at 4% APY, reflecting a Fed pause that leaves deposit rates above historical averages amid easing inflation.

Key Highlights

  • Goldman Sachs (NYSE: GS) leads with a 14-month CD paying 4% APY, the highest available rate as of June 16, 2026.
  • Average one-year CD rates fell to 1% APY in 2009 following the financial crisis, illustrating the current yield premium.
  • The Federal Reserve’s three rate cuts in 2025 pushed CD yields lower, yet they remain above pre-pandemic levels.
  • Online banks continue to outpace traditional institutions, offering rates near 4% compared to 0.1% seen in 2013.
  • Investors face a flattened yield curve, with 12-month CDs now offering higher returns than longer-term options.

Goldman Sachs (NYSE: GS) is offering a 14-month certificate of deposit at 4% annual percentage yield, the highest rate available to retail depositors as of June 16, 2026. The product reflects a broader trend of elevated deposit yields, even as the Federal Reserve holds its benchmark rate steady after three cuts in 2025.

CD rates have retreated from their post-pandemic peaks but remain well above historical lows. In 2013, six-month CDs averaged just 0.1% APY, while five-year terms paid 0.8%. The contrast underscores how aggressive Fed tightening between 2022 and 2023 lifted savings product returns before inflation cooled. The central bank’s pivot in September 2024 marked the start of a gradual easing cycle, yet deposit rates have not fallen in lockstep.

The current yield curve for CDs is unusual. Typically, longer maturities command higher rates to compensate for duration risk. Today, 12-month CDs offer the most competitive returns, signaling investor expectations of further rate declines. This inversion mirrors broader fixed-income markets, where shorter-duration bonds often yield more than longer-term debt.

Online banks continue to dominate the high-yield CD market. Institutions like Marcus by Goldman Sachs benefit from lower overhead costs, passing savings to customers in the form of higher APYs. Traditional banks, by comparison, have been slower to adjust deposit rates, leaving a widening gap between digital and brick-and-mortar offerings.

Investors weighing CDs must balance yield against liquidity constraints. Early withdrawal penalties can erode returns, making term selection critical. With inflation moderating but still above the Fed’s 2% target, locking in 4% APY may appeal to savers seeking stability over potential future rate cuts.

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