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Take Advantage of Today’s Highest CD Interest Rates

The Federal Reserve’s recent rate cut may be your last chance to secure a competitive certificate of deposit (CD) interest rate. With rates at their highest in over a decade, it’s essential to shop around and find the best offer for your savings.

Understanding CD Rates

Historically, longer-term CDs offered higher interest rates than shorter-term CDs. However, the current economic climate has flipped this trend on its head. Today, the highest CD rate is 4.27% APY, offered by NexBank on its 1-year CD, but it comes with a hefty $25,000 minimum opening deposit.

Top CD Rates Available Today

Several banks are offering competitive rates, including Synchrony and Marcus by Goldman Sachs, both with 4.25% APY on their 13-month and 1-year CDs, respectively. Here’s a breakdown of the best CD rates from our verified partners:

How CD Interest Works

The annual percentage rate (APY) determines the total earnings on your CD after one year, considering the base interest rate and compounding frequency. For example, a $1,000 investment in a 1-year CD with 1.81% APY would grow to $1,018.25 after one year, earning $18.25 in interest. A higher APY, such as 5%, would result in a balance of $1,051.16, earning $51.16 in interest.

Choosing the Right CD

While interest rate is a crucial factor, it’s not the only consideration. Different types of CDs offer unique benefits, often with slightly lower interest rates. These include:

• Bump-up CD: Allows you to request a higher interest rate if the bank’s rates increase during the term.
• No-penalty CD: Enables you to withdraw funds before maturity without penalty.
• Jumbo CD: Requires a higher minimum deposit, often offering higher interest rates in return.
• Brokered CD: Purchased through a brokerage, these CDs may offer higher rates or more flexible terms, but carry more risk and might not be FDIC-insured.

Explore Other Savings Options

If you’re searching for the best savings interest rates, money market account rates, or CD rates, we’ve got you covered. Learn more about these options and find the top offers today.