What's a good 1-year CD account interest rate considered to be now?

Savers hoping for some clarity into the future of the interest rate climate have had some mixed signals in recent weeks.

The Federal Reserve elected to keep interest rates paused at its July meeting, though three officials then had voted for a rate hike . Unemployment , meanwhile, was weaker than expected in the most recent reading, giving the central bank another item to consider. And then, this week, a new report showing inflation declining again could encourage an interest rate cut , if not when the bank meets again in September, then potentially later in the year. All of these developments have left savers unsure of their next steps and it has left many wondering what's actually considered to be a good interest rate on their savings accounts.

That definition is particularly important to get right for those considering a certificate of deposit (CD) account . Because your money will be locked into this account for the full term , you'll want to make sure that you're earning as much as you can. And with a 1-year CD, in particular, that's arguably even more important to get right as an early withdrawal fee on an account of this length could prove to be costly. So, what is a good 1-year CD account interest rate actually considered to be now, amid recent developments? That's what we'll outline below.

CD interest rates will vary by term, with long-term options often having higher rates than short-term accounts that mature in a year or less (a reversal from a trend noticed in recent years). But they will also vary by bank, with online ones typically offering higher rates than their counterparts with physical, in-person branch locations. That said, you may also be able to find competitive rates locally, underlining the importance of shopping around for accounts and rates before making any transfers.

Currently, the top 1-year CD account interest rates range from 4.15% to 4.25%. So if you can find one in that range, you can consider it to be a good one. But if you take the time to shop around, you may see rates as low as 4% for this term and as high as 4.30% or higher, depending on the bank and the requirements associated with an account opening. That not only makes a CD with this term length one of the more profitable you can open, it also makes it markedly more profitable than three other common savings accounts.

High-yield savings account rates, for example, generally top out around 4.10% currently. Money market account rates, meanwhile, range from 3.90% to 4.00%, while traditional savings accounts have the lowest average, coming in at just 0.38% now. And all three have variable rates not well positioned to respond to potential Fed rate cuts. CDs, however, offer fixed rates that will hold even during periods of market uncertainty, such as what many are experiencing now.