The Federal Reserve cut its federal funds rate 3 times in 2024, so now could possibly be your last likelihood to lock in a competitive CD rate before rates fall further.

CD rates vary widely across financial institutions, so it’s necessary to make sure you’re getting the perfect rate possible when shopping around for a CD. The next is a breakdown of CD rates today and where to search out the perfect offers.

Historically, longer-term CDs offered higher rates of interest than shorter-term CDs. Generally, it’s because banks would pay higher rates to encourage savers to maintain their money on deposit longer. Nonetheless, in today’s economic climate, the alternative is true.

See our picks for the perfect CD accounts available today>>

Today, the best CD rate 4.50% APY, offered by Marcus by Goldman Sachs on its 14-month CD. There’s a $500 minimum opening deposit required.

LendingClub can be offering 4.50% APY on its 10-month CD with a minimum deposit of $2,500.

Here’s a have a look at a few of the perfect CD rates available today:

The quantity of interest you possibly can earn from a CD depends upon the annual percentage rate (APY). It is a measure of your total earnings after one yr when considering the bottom rate of interest and the way often interest compounds (CD interest typically compounds day by day or monthly).

Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the tip of that yr, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest.

Now let’s say you select a one-year CD that gives 4% APY as an alternative. On this case, your balance would grow to $1,040.74 over the identical period, which incorporates $40.74 in interest.

The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures can be $10,407.42, meaning you’d earn $407.42 in interest. ​​

Read more: What’s a superb CD rate?

When selecting a CD, the rate of interest will likely be top of mind. Nonetheless, the speed isn’t the one factor it’s best to consider. There are several forms of CDs that provide different advantages, though chances are you’ll need to simply accept a rather lower rate of interest in exchange for more flexibility. Here’s a have a look at a few of the common forms of CDs you possibly can consider beyond traditional CDs:

• Bump-up CD: This kind of CD permits you to request the next rate of interest in case your bank’s rates go up throughout the account’s term. Nonetheless, you’re normally allowed to “bump up” your rate only once.

• No-penalty CD: Also often called a liquid CD, variety of CD gives you the choice to withdraw your funds before maturity without paying a penalty.

• Jumbo CD: These CDs require the next minimum deposit (normally $100,000 or more), and sometimes offer higher rate of interest in return. In today’s CD rate environment, nonetheless, the difference between traditional and jumbo CD rates is probably not much.

• Brokered CD: Because the name suggests, these CDs are purchased through a brokerage relatively than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but additionally they carry more risk and won’t be FDIC-insured.