Best CD Rates Today, Jan. 16, 2026: Earn Up to 4.18% APY If You Lock In Now

Certificate of deposit (CD) rates remain above 4% as of Jan. 13, 2026, offering a compelling option for savers seeking stable returns. The highest rate currently available is 4.18% APY on a 3-month CD from Citibank. With the Federal Reserve having cut rates three times in 2025, locking in CDs at present levels may prove beneficial.

Short-term CD offerings typically range from 4% to 4.5% APY, with some institutions like Marcus by Goldman Sachs offering competitive rates on 1-year CDs. Longer-term options are also available but generally offer slightly lower returns. Savers are advised to compare rates across institutions to maximize their returns.

Historical CD rates have varied significantly, with ultra-low rates prevailing during the 2000s and early 2010s. The Fed's rate hikes between 2015 and 2018 brought some relief, but the pandemic triggered a new wave of rate cuts, pushing CD yields to record lows. The recent uptick in rates offers a rare opportunity for savers to secure better returns.

Why Are Current Rates Considered Attractive?

The Federal Reserve's 2025 rate cuts have triggered a decline in bank deposit rates, making the current CD offers especially appealing. While rates are expected to continue trending downward, the present environment still favors savers who act quickly to lock in higher yields.

Investors who have not yet committed to a CD may find the current window advantageous. With a relatively short time frame before the end of the current rate cycle, securing a competitive APY could provide a buffer against potential future rate declines.

How Do These Rates Compare to Other Investment Options?

Compared to traditional savings accounts, CDs typically offer higher returns due to their fixed-term structure. While checking accounts and money market accounts remain popular for liquidity, they often fail to match the yields of CDs. For investors prioritizing capital preservation, CDs offer a low-risk, high-yield alternative.

The recent rise in CD rates comes against the backdrop of broader economic uncertainty. Inflation and interest rate fluctuations continue to shape financial markets, making fixed-income products like CDs a strategic choice for risk-averse investors.

What Are Investors Considering as Next Steps?

Many savers are evaluating whether to extend their CD terms to capture higher rates or explore alternative investment vehicles. While CDs provide stability, some investors are also exploring bond markets and dividend-paying stocks as part of a diversified approach.

Financial advisors suggest that savers should assess their liquidity needs and risk tolerance before committing to a CD. For those who can afford to lock in their money for a fixed period, the current rates offer a compelling return.