CD rates today, December 28, 2024 (best account provides 4.25% APY)

Today’s certificate of deposit (CD) rates are among the highest we’ve seen in more than a decade thanks to several rate hikes by the Federal Reserve. However, the Fed finally lowered its target rate this month, so now may be your last chance to lock in a competitive rate. :

CD rates vary widely among financial institutions, so it’s important to ensure you’re getting the best rate possible when purchasing a CD. Below is a summary of CD rates today and where to find the best deals.

Historically, longer-term CDs have offered higher interest rates than shorter-term CDs, generally because banks will pay better interest rates to encourage savers to keep their money on deposit longer. But in today’s economic climate, the opposite is true.

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

The highest CD rate available today from our verified partners is 4.25% APY offered by Marcus on its 1-year CD term.$500 minimum deposit required.

Here are some of the best CD prices available today.

The amount of interest you can earn on a CD depends on it the annual interest rate (APY): This measures your total return after a year, taking into account the base rate and how often interest is compounded (a CD’s interest is usually compounded daily or monthly).

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

Now let’s say you choose a one-year CD that offers a 4% APY, in which case your balance will grow to $1,040.74 over the same period, which includes $40.74 in interest.

If we take our same example of a one-year CD with a 4% APY but deposit $10,000, your total balance when the CD matures will be $10,407.42, which means you will earn $407.42 in interest

Read more. What is a good CD rate?

When choosing a CD, the rate is usually not the only factor you should consider a few common types of video discs that you might consider outside of traditional CDs;

• Blister-up CD: This type of CD allows you to claim a higher interest rate if your bank’s interest rates rise during the life of the account.

• No penalty CD: Also known as a liquid CD, a type of CD allows you to withdraw your funds before maturity without paying a penalty.

• Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more) and often offer a higher interest rate in return.In today’s CD rate environment, however, the difference between traditional and Jumbo CD rates may not be much.

• mediated CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry greater risks and may not be insured by the FDIC.