Best Certificate of Deposit Rates Hold at 4% APY as of February 5, 2026

The highest nationally available certificate of deposit (CD) rate is holding at 4% annual percentage yield (APY) on February 5, 2026, giving savers an opportunity to secure earnings that still outpace many standard savings and checking accounts. Marcus by Goldman Sachs is offering that top yield on its one-year CD, while several other financial institutions—primarily online banks—remain competitive at or near the same threshold.

Current landscape for CD returns

CD yields remain elevated compared with long-term historical averages, even though returns have drifted downward since the Federal Reserve began easing monetary policy. The central bank lowered its target for the federal funds rate three times in late 2024, cutting a combined one percentage point, and announced a third reduction for 2025 in December of that year. Additional rate decreases are possible later in 2026, but the timing and magnitude of any moves have not been outlined.

Although the federal funds rate does not directly determine deposit rates, banks typically adjust yields in tandem with Federal Reserve actions. As a result, CD rates have edged lower in recent months. Locking in an interest rate now can protect savers from further declines should the Fed continue its easing cycle.

Leading offers available today

The standout product remains the Marcus by Goldman Sachs 12-month CD at 4% APY, with no information in the market pointing to a higher nationally advertised rate. Other institutions are clustered just below that level, especially in the online banking segment, which tends to operate with lower overhead costs and therefore passes more yield to depositors. Traditional brick-and-mortar banks, by contrast, generally post lower rates on equivalent terms.

While the one-year maturity is currently the most lucrative, some banks are offering comparable yields on six-month to 18-month CDs. Longer terms, such as three-year or five-year certificates, typically carry lower APYs because investors are compensated for a longer commitment in a falling-rate environment.

Why consider opening a CD now

The primary attraction of a CD is the certainty of a fixed yield for a set period. With the prospect of further rate cuts on the horizon, opening a CD today may allow savers to preserve an above-average return regardless of future market moves. CDs also provide federal deposit insurance—up to $250,000 per depositor, per bank, and per ownership category—through the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), depending on the institution.

A CD can complement other savings vehicles by offering a predictable rate without the volatility associated with market-based investments. However, the trade-off is limited liquidity: withdrawing funds before the maturity date normally triggers an early withdrawal penalty that can negate a portion of the earned interest.

Key steps to open a CD

Procedures differ from one financial institution to another, but applicants generally follow the same sequence:

• Compare rates and terms: Start by reviewing current APYs across multiple banks and credit unions. Online rate tables and bank websites make it straightforward to see how the 4% top rate stacks up against other options.
• Select the appropriate term: Choose a maturity that aligns with personal cash-flow needs. Opting for a period that is too long can lead to penalties if funds are required before the CD matures.
• Confirm minimum deposit requirements: Most CDs stipulate an initial deposit amount. Minimums vary widely, from as little as $500 to several thousand dollars.
• Prepare identification: Institutions generally request a Social Security number, residential address, and a government-issued photo ID such as a driver’s license or passport.
• Complete the application: Many banks allow fully digital applications, and approval often arrives within minutes. Some applicants may need to visit a branch depending on the bank’s policies and the applicant’s residency status.
• Fund the account: Transfers from existing bank accounts are common, though a mailed check remains an option at certain institutions.

Influence of Federal Reserve policy

The link between the federal funds rate and deposit products is indirect yet significant. When the Federal Reserve adjusts its benchmark, banks reassess how much they are willing to pay for deposits. A lower federal funds rate usually leads to reduced CD yields because institutions can fund lending operations more cheaply. A detailed explanation of this mechanism is available from the Federal Reserve Board, which outlines how policy decisions filter through to consumer financial products.

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Given the recent cycle of rate cuts and the likelihood of additional easing, market watchers expect deposit rates to trend modestly lower through at least the first half of 2026. Savers monitoring CD yields may want to act sooner rather than later if locking in the current 4% APY aligns with their objectives.

Balancing CDs with other savings choices

While a CD offers a fixed return, high-yield savings accounts and money market accounts provide more flexibility because funds can be withdrawn without penalties. The downside is that those variable-rate products may adjust downward quickly if the broader rate environment continues to soften. A laddering strategy—dividing funds among multiple CDs with staggered maturities—can provide both liquidity and the opportunity to reinvest at prevailing rates as each rung matures.

Investors who require immediate access to cash may prefer to keep a portion of their reserves in a liquid account, using CDs only for money that can remain untouched for the chosen term length. As always, aligning deposit decisions with short- and long-term financial goals is critical.

Next steps for potential CD buyers

Savers interested in securing today’s leading 4% APY should verify the current rate directly with Marcus by Goldman Sachs or any other institution under consideration, as yields can change without notice. Reviewing the fine print—especially regarding minimum deposits and early withdrawal penalties—will help ensure the selected CD fits within an overall savings strategy.

With deposit rates still historically strong yet trending lower, the window for capturing top CD yields could narrow if the Federal Reserve pursues additional cuts later in 2026. Evaluating account options now may position savers to benefit from the most favorable terms currently on the market.

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