Banks offer up to 4% APY on short-term CDs despite prior Fed rate cuts, outpacing national averages.
Banks are offering certificate of deposit rates up to 4% APY for shorter terms, with Marcus by Goldman Sachs leading at 4% for a 14-month CD as of June 26, 2026. These rates remain competitive despite declines over the past two years.
The Federal Reserve cut its benchmark rate six times in 2024 and 2025, pressuring CD yields downward. However, the Fed’s pause in 2026 has allowed some institutions to maintain higher rates, particularly for terms of one year or less. National averages lag significantly behind top offers.
Online banks continue to provide the highest CD rates, reflecting lower overhead costs compared to traditional brick-and-mortar institutions. Savers are advised to compare rates before committing to an account.