CD Rates Decline but Remain Competitive for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
0mins
Should l Buy GS?
Source: Yahoo Finance
- Current CD Rate Overview: The best short-term CDs (6 to 12 months) currently offer rates around 4% APY, with Marcus by Goldman Sachs providing the highest at 4.05% APY on its 9-month CD, indicating attractive investment opportunities despite overall declining rates.
- Historical Rate Trends: Since 2009, CD rates have seen significant declines, particularly after the 2008 financial crisis, where the average one-year CD rate fell to about 1% and five-year CDs dropped below 2%, reflecting the economic slowdown's impact on deposit products.
- Impact of Economic Policies: Following 11 rate hikes by the Fed between 2022 and 2023, leading to increased loan rates and higher APYs on savings products, CD rates remain elevated by historical standards even as the Fed began cutting rates in 2024, indicating market expectations for future rate changes.
- Factors for Choosing the Best CD: When selecting a CD, investors should consider the duration for locking away funds, the type of financial institution and its rates, account terms, and the impact of inflation on real returns to ensure sound investment decisions and maximize yields.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 948.470
Low
604.00
Averages
951.45
High
1100
Current: 948.470
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Current CD Rates Exceed National Average
- Rate Trends: The Federal Reserve's three interest rate cuts in 2025 and subsequent stability in 2026 have led to rising deposit account rates, making it an opportune time to lock in high CD rates, with the current highest rate at 4% APY.
- Competitive Edge: Marcus by Goldman Sachs offers a leading 4% APY on its 9-month CD, significantly surpassing the national average of 1.53% for a 1-year CD, highlighting the competitive advantage of online banks and credit unions.
- Market Opportunity: Today's CD rates represent the highest levels seen in nearly two decades, primarily due to the Federal Reserve's efforts to combat inflation by maintaining elevated rates, providing investors with a chance to secure high returns amid increasing economic uncertainty.
- Selection Strategy: When choosing a CD, investors are advised to compare rates from various financial institutions, consider the advantages of online banks, and pay attention to minimum deposit requirements and account terms to ensure they secure the best rates and flexibility.
See More
CD Rates Decline but Remain Competitive for Investors
- Current CD Rates: Short-term CDs (6 to 12 months) currently offer rates around 4% APY, with the highest rate of 4% APY available from Marcus by Goldman Sachs, allowing investors to lock in competitive returns despite declining rates.
- Historical Rate Trends: Since 2009, CD rates have significantly declined, particularly after the financial crisis, with average five-year CD rates falling below 2%, reflecting the impact of economic slowdown and the Fed's low-rate policies on the market.
- Economic Environment Changes: As inflation surged, the Fed raised rates 11 times between 2022 and 2023, leading to a rebound in CD rates; although the Fed began cutting rates in 2024, CD rates remain high by historical standards, indicating market expectations for future rate changes.
- Factors in Choosing CDs: When selecting a CD, investors should consider the duration for locking funds, the rate differences among financial institutions, and account terms to ensure they choose the product that best meets their needs.
See More
Foreign Holdings of U.S. Treasuries Decline Amid Geopolitical Tensions
- Foreign Treasury Selloff: Foreign governments reduced their U.S. Treasury holdings to $9.25 trillion in March from $9.49 trillion in February, reflecting concerns over liquidity amid increased financial volatility due to geopolitical tensions.
- China's Holdings Decline: China's U.S. Treasury holdings fell to $652.3 billion in March, down approximately 6% from February, marking the lowest level since September 2008, indicating a strategic shift in response to energy shocks.
- Japan's Liquidation Trend: Japan, the largest foreign holder of U.S. debt, shed about $47 billion in March, bringing its holdings down to $1.191 trillion, highlighting its strategy to manage pressures from yen depreciation and rising energy costs.
- Stable Shadow Holdings: Despite a decrease in China's direct Treasury holdings,
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Trump Halts Military Action Against Iran Amid Global Energy Concerns
- Military Action Halted: Trump announced a pause in military action against Iran following requests from leaders in Saudi Arabia, the UAE, and Qatar, while still threatening a large-scale assault if necessary, which could significantly impact geopolitical stability in the Middle East.
- Oil Price Fluctuations: International benchmark Brent crude futures fell over 2% to $109.15 per barrel, while West Texas Intermediate futures declined 1.27% to $107.28, reflecting market concerns over energy supply tightness that may lead to future price increases.
- Pressure on Airlines: Ryanair's CFO warned of a potential
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- Significant Revenue Growth: CoreWeave's revenue surged by 112% year-over-year in Q1 2026 to $2.1 billion, while its revenue backlog skyrocketed by 284% to $99.4 billion, indicating strong demand and market positioning in the AI infrastructure sector.
- Data Center Expansion Plans: The company aims to operate 8 GW of active data center capacity by 2030, having increased its active capacity from 420 MW to 1 GW across 49 data centers in the U.S. and Europe, reflecting its proactive approach to meet market demand.
- Close Partnership with Nvidia: Nvidia's $2 billion investment in CoreWeave in January 2026 aims to accelerate AI infrastructure development, providing CoreWeave with robust technical support and market credibility, further driving its business growth.
- Future Profitability Expectations: Despite short-term cost increases due to expansion, CoreWeave anticipates its adjusted operating margin will return to low double digits by Q4 2026, showcasing its potential for long-term profitability and market confidence.
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Goldman Sachs Reports Record M&A Earnings in Q1
- Surge in M&A Activity: The first quarter saw a 50% year-over-year increase in global M&A deal value, significantly boosting Goldman Sachs' revenue from investment banking and reinforcing its market leadership.
- Strong Financial Performance: Goldman Sachs reported Q1 revenue of $17.2 billion, a 14% year-over-year increase, with net income reaching $5.6 billion and earnings per share of $17.55, surpassing analysts' expectations and demonstrating robust profitability.
- Investment Banking Strength: The investment banking division experienced a 48% year-over-year revenue spike to $2.84 billion, with $1.49 billion from advisory services, reflecting strong momentum from M&A activity and enhancing the company's competitive edge in the industry.
- Optimistic Future Outlook: The CEO noted that despite geopolitical tensions, the backlog of M&A deals is at a four-year high, with expectations for continued robust activity in the coming years, supported by declining interest rates and a favorable regulatory environment.
See More
Current CD Rates Exceed National Average
- Rate Trends: The Federal Reserve's three interest rate cuts in 2025 and subsequent stability in 2026 have led to rising deposit account rates, making it an opportune time to lock in high CD rates, with the current highest rate at 4% APY.
- Competitive Edge: Marcus by Goldman Sachs offers a leading 4% APY on its 9-month CD, significantly surpassing the national average of 1.53% for a 1-year CD, highlighting the competitive advantage of online banks and credit unions.
- Market Opportunity: Today's CD rates represent the highest levels seen in nearly two decades, primarily due to the Federal Reserve's efforts to combat inflation by maintaining elevated rates, providing investors with a chance to secure high returns amid increasing economic uncertainty.
- Selection Strategy: When choosing a CD, investors are advised to compare rates from various financial institutions, consider the advantages of online banks, and pay attention to minimum deposit requirements and account terms to ensure they secure the best rates and flexibility.
See More
CD Rates Decline but Remain Competitive for Investors
- Current CD Rates: Short-term CDs (6 to 12 months) currently offer rates around 4% APY, with the highest rate of 4% APY available from Marcus by Goldman Sachs, allowing investors to lock in competitive returns despite declining rates.
- Historical Rate Trends: Since 2009, CD rates have significantly declined, particularly after the financial crisis, with average five-year CD rates falling below 2%, reflecting the impact of economic slowdown and the Fed's low-rate policies on the market.
- Economic Environment Changes: As inflation surged, the Fed raised rates 11 times between 2022 and 2023, leading to a rebound in CD rates; although the Fed began cutting rates in 2024, CD rates remain high by historical standards, indicating market expectations for future rate changes.
- Factors in Choosing CDs: When selecting a CD, investors should consider the duration for locking funds, the rate differences among financial institutions, and account terms to ensure they choose the product that best meets their needs.
See More
Foreign Holdings of U.S. Treasuries Decline Amid Geopolitical Tensions
- Foreign Treasury Selloff: Foreign governments reduced their U.S. Treasury holdings to $9.25 trillion in March from $9.49 trillion in February, reflecting concerns over liquidity amid increased financial volatility due to geopolitical tensions.
- China's Holdings Decline: China's U.S. Treasury holdings fell to $652.3 billion in March, down approximately 6% from February, marking the lowest level since September 2008, indicating a strategic shift in response to energy shocks.
- Japan's Liquidation Trend: Japan, the largest foreign holder of U.S. debt, shed about $47 billion in March, bringing its holdings down to $1.191 trillion, highlighting its strategy to manage pressures from yen depreciation and rising energy costs.
- Stable Shadow Holdings: Despite a decrease in China's direct Treasury holdings,
See More
Trump Halts Military Action Against Iran Amid Global Energy Concerns
- Military Action Halted: Trump announced a pause in military action against Iran following requests from leaders in Saudi Arabia, the UAE, and Qatar, while still threatening a large-scale assault if necessary, which could significantly impact geopolitical stability in the Middle East.
- Oil Price Fluctuations: International benchmark Brent crude futures fell over 2% to $109.15 per barrel, while West Texas Intermediate futures declined 1.27% to $107.28, reflecting market concerns over energy supply tightness that may lead to future price increases.
- Pressure on Airlines: Ryanair's CFO warned of a potential
See More
CoreWeave Accelerates AI Infrastructure Development
- Significant Revenue Growth: CoreWeave's revenue surged by 112% year-over-year in Q1 2026 to $2.1 billion, while its revenue backlog skyrocketed by 284% to $99.4 billion, indicating strong demand and market positioning in the AI infrastructure sector.
- Data Center Expansion Plans: The company aims to operate 8 GW of active data center capacity by 2030, having increased its active capacity from 420 MW to 1 GW across 49 data centers in the U.S. and Europe, reflecting its proactive approach to meet market demand.
- Close Partnership with Nvidia: Nvidia's $2 billion investment in CoreWeave in January 2026 aims to accelerate AI infrastructure development, providing CoreWeave with robust technical support and market credibility, further driving its business growth.
- Future Profitability Expectations: Despite short-term cost increases due to expansion, CoreWeave anticipates its adjusted operating margin will return to low double digits by Q4 2026, showcasing its potential for long-term profitability and market confidence.
See More
Goldman Sachs Reports Record M&A Earnings in Q1
- Surge in M&A Activity: The first quarter saw a 50% year-over-year increase in global M&A deal value, significantly boosting Goldman Sachs' revenue from investment banking and reinforcing its market leadership.
- Strong Financial Performance: Goldman Sachs reported Q1 revenue of $17.2 billion, a 14% year-over-year increase, with net income reaching $5.6 billion and earnings per share of $17.55, surpassing analysts' expectations and demonstrating robust profitability.
- Investment Banking Strength: The investment banking division experienced a 48% year-over-year revenue spike to $2.84 billion, with $1.49 billion from advisory services, reflecting strong momentum from M&A activity and enhancing the company's competitive edge in the industry.
- Optimistic Future Outlook: The CEO noted that despite geopolitical tensions, the backlog of M&A deals is at a four-year high, with expectations for continued robust activity in the coming years, supported by declining interest rates and a favorable regulatory environment.
See More
