Sallie Mae leads with a 4.20% APY on 2-year CDs amid stable Fed policy and slowing rate cuts.
Certificate of deposit rates remain elevated, with the highest yield reaching 4.20% APY on a 2-year term from Sallie Mae. Online banks continue to offer competitive rates above 4%, outpacing traditional savings accounts despite a broader decline since late 2024.
The Federal Reserve has paused rate cuts in 2026 after three reductions in late 2024 and one in December 2025, totaling a 1 percentage point decrease. Markets now anticipate a potential rate hike before year-end, reflecting shifting economic conditions and inflation trends.
CD rates, while lower than 2025 peaks, remain above historical averages, providing savers with relatively attractive yields in a stable rate environment.