Current CD Rates and How to Find the Best Offers

Overview of CD Rates

In the current economic climate, short-term CDs often offer higher interest rates than longer-term CDs. Today, the highest CD rate available is 4.45% APY, offered by NexBank on its 1-year CD.

Interest Calculation

The annual percentage rate (APY) determines the amount of interest earned on a CD. It reflects the base interest rate and the frequency of compounding. For example, a $1,000 investment in a one-year CD with 4% APY would yield $40.74 in interest.

Types of CDs

Beyond traditional CDs, consider these options:

* Bump-up CD: Allows for a rate increase if bank rates rise.
* No-penalty CD: Offers the flexibility to withdraw funds early without penalty.
* Jumbo CD: Requires a higher minimum deposit ($100,000+) and typically offers higher interest rates.
* Brokered CD: Purchased through a brokerage, sometimes offering higher rates but carrying more risk.

Current Best CD Rates

We recommend the following CD accounts based on interest rates and fees:

* 6-Month Term: Discover Bank (3.60% APY)
* 1-Year Term: NexBank (4.45% APY)
* 18-Month Term: Bask Bank (4.20% APY)

Additional Resources

* [What is a High-Yield CD?](link)
* [Why a CD should be part of your retirement savings plan](link)
* [What is a good CD rate in 2025?](link)