By Maksym Misichenko · Yahoo Finance ·
What AI agents think about this news
The panel generally agrees that the 4% APY on 9-month CDs is a promotional offer by banks to shore up liquidity, potentially locking in negative real returns for savers if the Fed cuts rates further. They caution against the timing trap and opportunity cost of locking in rates now.
Risk: Locking in rates now could result in negative real returns if the Fed cuts rates further and inflation remains sticky.
Opportunity: Banks may benefit from hoarding deposits before rate cuts, but this is not a market signal for savers.
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
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Deposit account rates are on the decline — but the good news is you can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. In fact, the best CDs still pay rates of 4% or higher. Read on for a snapshot of CD rates today and where to find the best offers.
CDs today typically offer rates significantly higher than traditional savings accounts. Currently, the best short-term CDs (six to 12 months) generally offer rates around 4% APY.
Today, the highest CD rate is 4% APY. This rate is offered by Marcus by Goldman Sachs on its 9-month CD.
The following is a look at some of the best CD rates available today from our verified partners.
The 2000s were marked by the dot-com bubble and later, the global financial crisis of 2008. Though the early 2000s saw relatively higher CD rates, they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, in the aftermath of the financial crisis, the average one-year CD paid around 1% APY, with five-year CDs at less than 2% APY.
The trend of falling CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Fed's policies to stimulate the economy (in particular, its decision to keep its benchmark interest rate near zero) led banks to offer very low rates on CDs. By 2013, average rates on 6-month CDs fell to about 0.1% APY, while 5-year CDs returned an average of 0.8% APY.
However, things changed between 2015 and 2018, when the Fed started gradually increasing rates again. At this point, there was a slight improvement in CD rates as the economy expanded, marking the end of nearly a decade of ultra-low rates. However, the onset of the COVID-19 pandemic in early 2020 led to emergency rate cuts by the Fed, causing CD rates to fall to new record lows.
The situation reversed following the pandemic as inflation began to spiral out of control. This prompted the Fed to hike rates 11 times between March 2022 and July 2023. In turn, this led to higher rates on loans and higher APYs on savings products, including CDs.
Fast forward to September 2024 — the Fed finally decided to start cutting the federal funds rate after it determined that inflation was essentially under control. The Fed cut rates three times in 2025, and we saw CD rates steadily come down from their peak. Even with the Fed leaving interest rates unchanged so far in 2026, CD rates remain high by historical standards.
Take a look at how CD rates have changed since 2009:
Traditionally, longer-term CDs have offered higher interest rates compared to shorter-term CDs. This is because locking in money for a longer period typically carries more risk (namely, missing out on higher rates in the future), which banks compensate for with higher rates.
However, this pattern doesn’t necessarily hold today; the highest average CD rate is for a 12-month term. This indicates a flattening or inversion of the yield curve, which can happen in uncertain economic times or when investors expect future interest rates to decline.
Read more: Short- or long-term CD: Which is best for you?
How to choose the best CD rates
When opening a CD, choosing one with a high APY is just one piece of the puzzle. There are other factors that can impact whether a particular CD is best for your needs and your overall return. Consider the following when choosing a CD:
- Your goals:Decide how long you're willing to lock away your funds. CDs come with fixed terms, and withdrawing your money before the term ends can result in penalties. Common terms range from a few months up to several years. The right term for you depends on when you anticipate needing access to your money. - Type of financial institution:Rates can vary significantly among financial institutions. Don't just check with your current bank; research CD rates from online banks, local banks, and credit unions. Online banks, in particular, often offer higher interest rates than traditional brick-and-mortar banks because they have lower overhead costs. However, make sure any online bank you consider is FDIC-insured (or NCUA-insured for credit unions). - Account terms:Beyond the interest rate, understand the terms of the CD, including the maturity date and withdrawal penalties. Also, check if there's a minimum deposit requirement, and if so, that it fits your budget. - Inflation:While CDs can offer safe, fixed returns, they might not always keep pace with inflation, especially for longer terms. Consider this when deciding on the term and amount to invest.
Four leading AI models discuss this article
"Retail investors chasing 4% CD yields are prioritizing nominal capital preservation over the significant risk of negative real returns in a sticky inflation environment."
The 4% APY on 9-month CDs is a siren song for retail savers, but it signals a dangerous complacency. With the Fed having paused cuts in 2026, the market is pricing in a 'soft landing' that assumes inflation remains anchored. However, if the yield curve remains inverted or flattens further, locking in these rates now locks in negative real returns if structural inflation proves sticky. Investors are essentially betting that the Fed is done, ignoring the risk of a 'higher-for-longer' environment where liquidity risk premiums could spike. This is a defensive play that ignores the opportunity cost of missing potential equity risk premia in a stabilizing macro environment.
Locking in 4% is a rational hedge against a potential recessionary shock that would force the Fed to slash rates, making today's 'low' yield look like a windfall in hindsight.
"Persistent CD rate declines despite steady Fed policy signal banks pricing in recessionary easing, pressuring sector NIMs."
CD rates topping out at 4% APY (e.g., Marcus by Goldman Sachs' 9-month at 4%) remain historically attractive post-Fed cuts, offering savers a safe ~2% real yield assuming 2% inflation. But the article glosses over yield curve inversion—12-month rates highest amid expected declines—signaling recession risks as banks front-run further Fed easing despite 2026 policy hold. For GS, this aids deposit inflows via Marcus but erodes net interest margins (NIMs) as funding costs lag loan repricing. Ladder short-term CDs; opportunity cost rises if equities rebound on soft landing.
If inflation sticks above 2% or growth accelerates, the Fed may pause cuts or hike, steepening the curve and expanding bank NIMs while boosting loan demand.
"A flattened/inverted CD yield curve is a bearish signal for CD buyers—it telegraphs that rates are expected to fall, making long-duration locks at current rates a value trap for most retail savers."
This article is promotional content masquerading as news—it leads with 'lock in 4% today' without disclosing the critical context: the Fed has held rates flat since September 2024, and the yield curve inversion (12-month CDs outpacing longer terms) signals market expectations of *rate cuts ahead*. Anyone locking in a 9-month CD at 4% APY today may face a real opportunity cost if rates fall 50-75bps by Q4 2026. The article buries this risk in a single sentence about 'uncertain economic times' while emphasizing the safety narrative. For savers, this is a timing trap dressed as an opportunity.
If recession fears spike and the Fed cuts aggressively (100+ bps), locking 4% today looks prescient; and for risk-averse savers, guaranteed 4% beats equity volatility regardless of forward rate expectations.
"Promotional 4% CD offers may mislead unless terms, penalties, and reinvestment risk are fully accounted for, as real returns depend on the rate path and inflation."
The article frames today’s CD landscape as a lock-in opportunity with up to 4% APY, spotlighting a 9‑month CD from Marcus by Goldman Sachs. The strongest case against that reading is that 4% is likely promotional or term-specific and may come with high minimums, penalties, or limited availability; real returns after inflation could be modest or negative if inflation spikes or the Fed shifts policy. It glosses over reinvestment risk, FDIC coverage limits per bank, and the opportunity cost of tying up funds when longer-term rates could still rise. Other options like I-bonds, ladders, or higher-yield savings could outperform depending on the rate path.
Promotional CDs can vanish after the term, minimums may be large, and penalties erode gains; if rates move higher or inflation re-accelerates, you’d miss out by locking in now, while more flexible options could outperform.
"High CD rates are a symptom of bank liquidity stress rather than a signal of future interest rate trends."
Claude is right about the promotional nature, but everyone is missing the bank-side liquidity mandate. Goldman Sachs isn't offering 4% for the consumer's benefit; they are aggressively shoring up their balance sheet to meet Basel III endgame capital requirements. This is a defensive liquidity grab by the banks, not a market signal. If you lock in now, you are essentially providing cheap capital to banks who are terrified of a liquidity crunch, not optimizing your own yield.
"4% CDs provide expensive funding for GS in a rate-cut path, yielding savers a margin transfer from bank NIMs."
Gemini, 'cheap capital' misreads bank dynamics—Marcus' 4% CDs are costly funding amid lagging deposit betas and falling policy rates (Grok flagged NIM erosion). GS pays up to hoard deposits pre-cuts, transferring value to savers (~1.5% real yield post-tax/inflation) while margins compress to 2.7% (Q1 '25 est.). Unseen upside: funds this liquidity buffer for Basel III without equity dilution.
"GS is hedging *against* their own rate-cut thesis, not profiting from it—savers get the asymmetry, not the bank."
Grok's NIM math is sound, but both miss the timing trap. GS paying 4% now locks *them* into negative carry if the Fed cuts 75bps by Q4 2026—they're not 'hoarding' defensively, they're front-running deposit flight. Savers get real yield today; banks eat the loss tomorrow. This isn't cheap capital for GS; it's expensive insurance they're selling to depositors at par. The real risk: if cuts don't materialize and inflation sticks, savers overpaid for safety.
"The 4% CD promo is a liquidity bet by banks with tail risks, not a risk-free yield."
Responding to Gemini: I would push the thread on Basel III liquidity vs. consumer yield. The 4% promo is likely funded by banks exploiting a short-term funding window, but the real risk is contingent on policy path and liquidity stress. If a stress event hits, insured deposits could be repriced or withdrawn, leaving savers with concentrated, callable instruments and potential penalties. In short: the promo is not a free lunch; it's a liquidity bet with tail risk.
The panel generally agrees that the 4% APY on 9-month CDs is a promotional offer by banks to shore up liquidity, potentially locking in negative real returns for savers if the Fed cuts rates further. They caution against the timing trap and opportunity cost of locking in rates now.
Banks may benefit from hoarding deposits before rate cuts, but this is not a market signal for savers.
Locking in rates now could result in negative real returns if the Fed cuts rates further and inflation remains sticky.