Savers looking to maximize returns may want to act quickly as best CD rates today remain competitive despite recent Federal Reserve rate cuts. Following three federal funds rate reductions in 2025, financial experts suggest that current certificate of deposit offerings could represent the last opportunity to secure higher yields before rates decline further. According to current market data, the top CD rates are predominantly available through online banks and credit unions, with shorter-term products offering the most attractive returns.
As of February 7, 2026, Marcus by Goldman Sachs leads the market by offering 4% APY on its one-year CD, representing the highest rate currently available. Online financial institutions and credit unions continue to outpace traditional brick-and-mortar banks in competitive rate offerings, particularly for terms of one year or less.
Understanding CD Rate Returns and Interest Calculations
The annual percentage yield determines how much interest depositors can earn from their certificates of deposit. APY calculations incorporate both the base interest rate and compounding frequency, which typically occurs daily or monthly at most financial institutions.
For example, a $1,000 deposit in a one-year CD offering 1.61% APY with monthly compounding would grow to $1,016.22 at maturity, earning $16.22 in interest. However, the same deposit in a CD offering 4% APY would yield a balance of $1,040.74, including $40.74 in interest earnings.
The relationship between deposit size and earnings becomes more significant with larger investments. A $10,000 deposit in that same one-year CD at 4% APY would mature at $10,407.42, generating $407.42 in interest income over the term.
Different Types of Certificates of Deposit
While interest rates remain a primary consideration, various CD products offer distinct features that may appeal to different savings goals. Traditional CDs typically provide the highest rates but require funds to remain locked until maturity.
Bump-up CDs allow account holders to request a rate increase if the issuing bank raises its rates during the CD term, though this option is usually limited to one adjustment. Meanwhile, no-penalty CDs, also called liquid CDs, permit early withdrawals without incurring standard penalty fees, providing greater flexibility at potentially lower rates.
Additionally, jumbo CDs require substantial minimum deposits of $100,000 or more and historically offered premium rates. However, in the current rate environment, the yield advantage over standard CDs has narrowed considerably at many institutions.
Brokered CD Options and Considerations
Brokered CDs, purchased through investment brokerages rather than directly from banks, sometimes feature higher certificate of deposit rates or more flexible terms. Nevertheless, these products carry additional risks and may not always include FDIC insurance protection, requiring careful evaluation before investing.
Market observers expect CD rates to continue declining as financial institutions adjust to the Federal Reserve’s recent policy changes. Savers considering certificates of deposit should compare offerings across multiple institutions soon, as the current competitive environment may not persist if additional rate cuts occur throughout 2026.
