Certificate of Deposit (CD) Rates Today: Lock in Competitive Rates
Due to recent Federal Reserve rate hikes, certificate of deposit (CD) rates are reaching their highest levels in over a decade. However, the Fed's rate cuts since late 2024 may make now the last opportunity to secure a favorable rate.
Overview of Today's CD Rates
Traditionally, longer-term CDs offered higher rates than shorter-term CDs. Today, the reverse is true due to economic conditions.
Highest CD Rates Today
The top CD rate today is 4.35% APY, offered by Synchrony Bank on its 13-month CD. Additional competitive rates include:
* [Insert CD rates table]
Interest Earned on CDs
The interest earned on a CD depends on the annual percentage yield (APY), which includes the base interest rate and compounding frequency (typically daily or monthly).
For example, investing $1,000 in a one-year CD with 1.81% APY and monthly compounding would yield a balance of $1,018.25 at maturity, including $18.25 in interest.
Types of CDs
Consider more than interest rates when choosing a CD. Explore different types of CDs with unique benefits:
* Bump-up CD: Request a higher rate if the bank's rates increase during the term.
* No-penalty CD: Withdraw funds before maturity without penalties.
* Jumbo CD: Higher minimum deposits but often yield higher rates.
* Brokered CD: Purchased through a brokerage, potentially offering higher rates or more flexible terms.
Find the Best CD Rates
To secure the highest CD rates today, consider:
* Comparing offers from multiple financial institutions
* Opening an account with a bank known for offering competitive rates
* Negotiating a rate with your current financial institution