High-Yield 14-Month CD from Goldman Sachs Offers 4% APY
GS•Marcus by Goldman Sachs’ 14-month CD now yields 4% APY, the highest among short-term certificates as rates decline from 2023 peaks. Six- to 12-month CDs offer 4% to 4.5% APY, reflecting sustained elevated yields despite recent Fed rate cuts.
1. Goldman Sachs CD Yield Update
The 14-month certificate of deposit from Goldman Sachs now carries a 4% APY, making it the top short-term offering in today’s market. This rate cap positions the bank competitively as broader deposit yields pull back from their early 2023 highs.
2. Current Short-Term Rate Landscape
Short-term CDs of six to 12 months are currently priced between 4% and 4.5% APY, indicating a flattening yield curve as expectations build for future rate cuts. These levels remain elevated relative to the sub-1% yields seen during much of the 2010s.
3. Historical Interest Rate Context
From March 2022 through July 2023, the Federal Reserve delivered 11 rate hikes, driving deposit yields to multi-decade highs. Subsequent cuts beginning in September 2024 have triggered a gradual decline in CD returns, though they still exceed pre-pandemic norms.
4. Implications for Goldman Sachs
Attractive CD yields may accelerate deposit inflows but also raise funding costs, putting pressure on net interest margins. Sustained consumer demand for higher-yield deposits could bolster the bank’s retail franchise performance moving forward.
