CD Systems: Attractive Interest Rate Environment Despite Declining Trends

Although interest rates on deposit accounts are in decline, certificates of deposit (CDs) still offer an attractive way to ensure a return on capital. Currently, short-term CDs, with maturities between six and twelve months, are particularly interesting and offer interest rates of over 4% APY, placing them significantly above traditional savings accounts. As of September 24, 2025, Marcus by Goldman Sachs entices with a top interest rate of 4.25% APY on their 6-month CD. This offer stands out in a market shaped by changes after the economic turbulence of recent decades. During the dotcom bubble and the 2008 financial crisis, interest rates fell significantly, and this trend continued during the 2010s. It was only after 2015 that a slight turnaround in interest rates occurred. The years 2022 to 2023 eventually brought eleven Fed rate hikes, revolutionizing the savings environment. However, with the post-pandemic recovery and declining inflation, the Fed began to lower rates again in 2024, which also impacted CD rates. Interestingly, the current highest rate on a 12-month CD exceeds all longer-term options. This flattening of the yield curve might indicate economic uncertainty or expectations of declining interest rates in the future. Despite all fluctuations, it remains essential to focus on more than just high interest rates when selecting CDs to make a choice that suits individual needs.