Top CD Rate Holds at 4% APY as Deposit Yields Retreat After Fed Cuts

The highest nationally available certificate of deposit rate remains at 4% annual percentage yield as of May 27, 2026, even as deposit yields steadily decline following a series of Federal Reserve rate cuts. Marcus by Goldman Sachs offers the 4% APY on a 14-month term, leading a market where short-term CDs of six to 12 months typically yield 4% to 4.5%. The yield curve has flattened, with the highest average rate now on a 12-month CD, an inversion that signals market expectations for further monetary easing. CD rates have retreated from their 2023 peak but hold at historically elevated levels after the Fed raised its benchmark rate 11 times between March 2022 and July 2023 to combat spiraling inflation. The central bank shifted stance in September 2024, implementing its first cut after determining inflation was under control, followed by three additional cuts in 2025. Average one-year CDs, which paid around 1% in 2009 and fell to record lows during the pandemic, briefly surged before the current downward trend.