Guide to CDs
We cover everything from the fundamentals to CD strategies.
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3 Ways to Make the Most of Current Interest Rates
January 28, 2026
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The Federal Reserve has lowered the fed funds rate three times since September 2025. And at the January FOMC meeting, the Fed kept interest rates unchanged at 3.50%-3.75%.
Looking ahead, Goldman Sachs Research expects two more cuts in 2026, penciling in the next 25-basis-point rate cut for June, followed by a final cut in September (as of January 28).
In light of this rate environment, what are some things savers could do to help maximize returns?
Here are three possible options.
1. Transfer funds from a traditional savings account to a high-yield savings account
If you have money parked in a traditional savings account, you’re probably not earning the interest you could be earning with a high-yield savings account.
High-yield savings accounts, as the name implies, can help you earn a higher APY than a standard savings account.
If you’re interested in opening an account, make sure that the bank you choose is a member of the FDIC, so that your deposits are insured up to the maximum amount allowable by law.
With an FDIC-insured high-yield savings account, your money can grow faster with a competitive rate while remaining safe and easily accessible.
Here are some things to keep in mind with high-yield savings accounts.
- You may need to meet minimum balance requirements to earn the highest APY offered by your account.
- You’re subject to variable rates. This means the APY on your account can go up or down.
- You may have limited access to your funds if your bank has a monthly account withdrawal limit.
Read more: What is a high-yield savings account?
2. Lock in the latest rates with high-yield CDs
High-yield CDs typically offer higher interest rates than savings accounts, providing another low-risk way to put your money to work. Because they usually come with a fixed rate, high-yield CDs can be ideal for savers looking for guaranteed, predictable earnings over the CD term.
Keep in mind, however, that CDs typically have less liquidity than savings accounts.
While they may offer more competitive rates, in exchange, you’re committing to keeping your money deposited at the bank over a set term. The length of a term can range anywhere from three months to three years (or more) depending on your account provider.
This means that if you need to withdraw your money early (before maturity), you’ll have to pay an early withdrawal penalty (unless it’s a no-penalty CD).
If you’re ready to open a CD, here are some tips to remember:
- Think about the length of the term you can commit to.
- Find the right type of CD that fits your goals.
- Determine how much money you want to deposit.
- Shop around to find competitive rates.
- Make sure your CD account is held at an FDIC member bank.
3. Build a CD ladder
If you decide to open a CD or multiple CDs, you may want to consider a CD laddering strategy.
The goal is to lock in high APYs across multiple CD terms instead of committing all of your funds into one CD. Those multiple certificates of deposit will mature at different points in time. And as each CD matures, you'll be able to access your funds, which you could roll over to a new CD or take the money out to spend.
In other words, by spreading your money across multiple CDs, CD laddering can offer you some withdrawal flexibility, as each CD reaches maturity.
It’s also worth noting that while fixed-rate CDs provide a predictable rate of return, CD rates available in the market may fluctuate depending on a number of factors. Since CD rates can go up or down at any time, laddering your CDs could help you hedge against the uncertainty of how rates will shift.
Keep in mind that CD ladders can still incur some liquidity risk, as early withdrawals can trigger penalties. Also, a laddering strategy requires you to actively manage the staggering or layering of your CDs.
Read more: How to build a CD ladder and Quick guide to CD barbells
Wrapping up
High-yield savings and CD accounts combined with the right savings strategy can help you make the most of the current interest rate environment.
Carefully consider your options as you put together a savings plan that makes sense for your timeline and goals. If you have questions about your specific financial situation, connect with a financial advisor who can offer more personalized guidance.
Visit Marcus Resources Hub for more timely insights on the Fed and their interest rates decisions.
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. This article is not a product of Goldman Sachs Global Investment Research. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed. You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format without the express written consent of Goldman Sachs. This foregoing restriction includes, without limitation, using, extracting, downloading or retrieving this information, in whole or in part, to train or finetune a machine learning or artificial intelligence system.
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