Today’s certificate of deposit (CD) rates of interest are a number of the highest we’ve seen in greater than a decade because of several rate hikes by the Federal Reserve. Nonetheless, the Fed finally cut its goal rate in September, 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 very best rate possible when shopping around for a CD. The next is a breakdown of CD rates today and where to seek out the very best 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.

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As of January 12, 2025, CD rates remain high by historical standards. Nonetheless, the best CD rates might be found for shorter terms of around one 12 months or less.

Today, the best CD rate 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD. There’s a minimum deposit of $500 required.

Here’s a take a look at a few of the very best CD rates available today from our verified partners:

The quantity of interest you’ll be able to earn from a CD will depend on the annual percentage rate (APY). This can be a measure of your total earnings after one 12 months 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 12 months, 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 very good CD rate?

When selecting a CD, the rate of interest is generally top of mind. Nonetheless, the speed isn’t the one factor you must consider. There are several sorts of CDs that provide different advantages, though you could need to simply accept a rather lower rate of interest in exchange for more flexibility. Here’s a take a look at a number of the common sorts of CDs you’ll be able to consider beyond traditional CDs:

• Bump-up CD: This sort of CD permits you to request a better rate of interest in case your bank’s rates go up through the account’s term. Nonetheless, you’re often allowed to “bump up” your rate only once.

• No-penalty CD: Also referred to as a liquid CD, sort 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 (often $100,000 or more), and infrequently offer higher rate of interest in return. In today’s CD rate environment, nevertheless, 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 slightly than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but additionally they carry more risk and may not be FDIC-insured.