Today’s certificate of deposit (CD) rates of interest are among the highest we’ve seen in greater than a decade due to several rate hikes by the Federal Reserve. Nonetheless, the Fed finally cut its goal rate this month, so now may very well be your last likelihood to lock in a competitive rate.

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

Historically, longer-term CDs offered higher rates of interest than shorter-term CDs. Generally, it is 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 most effective CD accounts available today>>

Today, the very best CD rate available from our verified partners is 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD term. There’s a minimum deposit of $500 required.

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

The quantity of interest you possibly can earn from a CD will depend on the annual percentage rate (APY). This can be 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 each day or monthly).

Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the top 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 provides 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 is normally top of mind. Nonetheless, the speed isn’t the one factor you must consider. There are several kinds of CDs that supply different advantages, though chances are you’ll need to just accept a rather lower rate of interest in exchange for more flexibility. Here’s a have a look at among the common kinds of CDs you possibly can consider beyond traditional CDs:

• Bump-up CD: The sort of CD lets you request a better 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, form of CD gives you the choice to withdraw your funds before maturity without paying a penalty.

• Jumbo CD: These CDs require a better minimum deposit (normally $100,000 or more), and infrequently 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 quite 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.