Popular Direct leads current certificate-of-deposit offers with 4.50% APYs on three-, four- and five-year terms as rate cuts keep pressure on deposit yields.
The most competitive certificates of deposit currently offer rates up to 4.50% APY as of August 4, 2026, with Popular Direct posting that top yield on three-year, four-year and five-year terms. The update comes after the Federal Reserve cut its benchmark federal funds rate three times in 2025, prompting many banks to lower CD and savings rates and making it more attractive for savers to lock in still-elevated yields. The article, using data from Curinos, spans CDs from one month to 10 years and argues that comparing offers across institutions can materially increase returns, particularly versus lower-paying brick-and-mortar banks. It illustrates the difference with examples showing a $5,000 deposit compounded monthly earning $203.71 over one year at 4.00% APY versus $82.62 at 1.64%, and $1,044.43 over five years at 3.80% versus $346.28 at 1.34%. The piece also places current rates in historical context, noting double-digit CD yields in the 1980s, five-year CDs just above 3.00% in 2019, and rates above 5.00% in the early 2020s before settling more commonly into the 3.00% to 4.00% range. It says the federal funds rate now stands at 3.50% to 3.75%, with the Federal Open Market Committee next scheduled to meet on Sept. 15-16, and reiterates that CD yields tend to move with Federal Reserve policy. The article advises savers to weigh term length, APY, minimum deposit requirements, early withdrawal penalties and FDIC or NCUA insurance, while also comparing CDs with high-yield savings accounts that may offer APYs in the 4.00% to 5.00% range but do not lock in a fixed return.