Banks offer up to 4% APY on short-term CDs despite broader declines following Fed rate cuts in 2024-2025.
Banks are offering certificate of deposit (CD) rates up to 4% APY, with the highest yield available on a 14-month term from Marcus by Goldman Sachs. This follows a period of declining rates after the Federal Reserve cut its benchmark rate six times in 2024 and 2025, though policy has remained steady in 2026.
National averages for CD rates remain significantly lower than the top offers, underscoring the variability among institutions. Shorter-term CDs, particularly those with maturities of one year or less, continue to provide the most competitive yields. Online banks and neobanks are leading the market in higher rates due to lower operational costs.
The Fed’s decision to hold rates unchanged in 2026 has contributed to the stabilization of CD yields, though rates remain below peaks seen in earlier years. Investors seeking secure returns are advised to compare offers across institutions to maximize earnings.