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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, now is the time to shop around for the best CD offers.

Understanding CD Rates

Historically, longer-term CDs offered higher interest rates than shorter-term CDs. However, in today’s economic climate, the opposite is true. CD rates vary widely across financial institutions, making it essential to find the best rate possible.

Top CD Rates Today

The highest CD rate currently stands at 4.27% APY, offered by NexBank on its 1-year CD term, with a minimum opening deposit of $25,000. Marcus by Goldman Sachs follows closely with a 4.25% APY on its 1-year CD, requiring a minimum deposit of $500.

How CD Interest Works

The annual percentage rate (APY) determines the interest you can earn from a CD. This measure considers the base interest rate and how often interest compounds. 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. In contrast, a 1-year CD with 4% APY would yield $40.74 in interest, bringing the total balance to $1,040.74.

Types of CDs

While interest rate is a crucial factor, it’s not the only consideration when choosing a CD. Different types of CDs offer unique benefits, often at the cost of a slightly lower interest rate. 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 incurring a penalty.
• Jumbo CD: Requires a higher minimum deposit (usually $100,000 or more) and often offers a higher interest rate 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 or money market account rates, we’ve got you covered. Learn more about these options and discover the top offers available today.