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High CD Rates Available Despite Decline in Deposit Account Rates
ByAinvest
Wednesday, Aug 20, 2025 6:02 am ET1min read
CD rates are declining, but you can still lock in competitive returns. The best short-term CDs offer rates around 4% to 4.5% APY, with the highest rate of 4.4% APY offered by Marcus by Goldman Sachs and Nexbank. Historically, CD rates have fallen due to the global financial crisis and the Fed's policies to stimulate the economy. However, rates have improved since 2015 and were boosted by the Fed's rate hikes between 2022 and 2023. Despite the Fed's recent rate cuts, CD rates remain high by historical standards.
Despite a recent decline in CD rates, savers can still secure competitive returns, particularly with short-term CDs. The best short-term CDs currently offer rates around 4% to 4.5% APY, with Marcus by Goldman Sachs and Nexbank leading the pack at 4.4% APY [1].Historically, CD rates have been influenced by global financial crises and the Federal Reserve's policies. The global financial crisis led to a significant drop in CD rates, but they have since rebounded. The Fed's rate hikes between 2022 and 2023 further boosted CD rates, which have remained high by historical standards despite recent rate cuts.
Morgan Stanley Private Bank, LimelightBank, and Marcus by Goldman Sachs are among the top institutions offering competitive CD rates. Morgan Stanley Private Bank offers terms ranging from six months to five years with no minimum deposit requirement, making it accessible to most savers. LimelightBank, an online bank, offers competitive yields on its CDs, though it requires a minimum deposit of $1,000. Marcus by Goldman Sachs stands out with a $500 minimum deposit and offers no-penalty and bump-rate CDs [1].
To make the most of current CD rates, savers should consider their financial goals and risk tolerance. Short-term CDs are ideal for those seeking immediate liquidity, while longer-term CDs can offer higher yields. It is also essential to compare rates across different institutions and consider the penalties for early withdrawal.
References:
[1] https://www.bankrate.com/banking/cds/cd-rates/
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