Ever since the Federal Reserve began lowering the federal funds rate late last year, deposit account rates have been on the decline as well.

The good news: You can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. Read on for a snapshot of CD rates today and where to find the best offers.

CD rates have remained high by historical standards, especially for shorter terms. For example, it’s possible to find rates of 4.00% APY or higher for terms of about one year and under. Although interest rates for longer-term CDs aren’t quite as high, the best available rates still hover near 3%-4% APY for terms of three years or more.

Today, the highest CD rate 4.35% APY, offered by Synchrony on its 13-month CD. There is no minimum opening deposit required.

Here is a look at some of the best CD rates available today from our verified partners:

See our picks for the best CD accounts available today>>

CD rates are tied to the federal funds rate; when the Fed increases its target rate, deposit account rates usually follow suit, and vice versa.

The Fed held interest rates steady for most of 2024, with a target rate of 5.25% – 5.50%. However, as inflation cooled and economic growth improved, it finally slashed the federal funds rate by 50 basis points in September, and another 25 basis points in November and December. Experts believe there will be additional rate cuts in 2025.

As a result, CD rates have begun falling. That means now might be the last chance for savers to lock in today’s higher CD rates.

Read more: APY vs. interest rate: What’s the difference?

Whether or not you should put your money in a CD depends on several factors. Earning a competitive interest rate is important, but it’s not the only consideration to keep in mind. Here’s a closer look at some of these key factors to think about:

• Interest rates: CDs make for a more attractive investment option when interest rates are high or trending downward since they lock in the current rate for the entire term. Considering the recent trends in interest rates, it could be a good time to put your money in a CD and secure a guaranteed rate of return.

• Financial goals: CDs are a safe investment choice if you’re looking to preserve capital and earn a steady return. They are insured by the FDIC up to the federal limit and can’t lose money in most cases, making them a low-risk option. That said, if you’re saving for a long-term goal like retirement, a CD may not be the best choice since market investments tend to provide higher returns, on average.

• Liquidity needs: CDs require you to lock in your money for a set period, known as the term. If you think you’ll need to access your money before the term ends, you may want to avoid CDs, as they come with early withdrawal penalties. A high-yield savings account or other type of deposit account may be a better option.

Read more: How much do you need to open a CD?

CDs are available from most banks. However, if you’re interested in opening a CD, it’s important to look beyond your current bank. Not all CDs offer competitive rates, even in a high interest rate environment. That’s why comparing multiple CD account options is important, especially among financial institutions that are known for offering higher rates.

• Online banks: One of the best places to find high-yield CDs is online banks. Since they are less expensive to operate than traditional brick-and-mortar banks, online banks can pass on those savings to customers in the form of lower fees and higher rates on deposits. So, if you’re interested in opening a CD with a high rate, online institutions are a great place to start.

• Credit unions: As not-for-profit financial cooperatives, credit unions tend to offer better rates and lower fees than for-profit banks. Research the local credit unions in your area, as well as online credit unions, and find out if you qualify to join any.

• Community banks: Local banks strive to serve their communities and often provide more affordable and personalized service than large, national banks. They also typically offer more competitive interest rates on deposits.

Read more: Can you gift a CD?