In light of the Federal Reserve's rate cuts in 2024, consider locking in a competitive CD rate before further declines. CD rates vary across institutions, so comparison shopping is crucial.
Overview of CD Rates
Historically, longer-term CDs offered higher rates. However, in today's economy, shorter-term CDs may offer higher rates.
Current CD Rates
As of February 2025, LendingClub offers the highest CD rate of 4.35% APY on its 10-month CD. Other top CD rates include:
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Interest Earnings
Interest earnings on CDs depend on the APY. For example, a $1,000 deposit in a one-year CD with 1.81% APY would earn $18.25 in interest. A $1,000 deposit in a one-year CD with 4% APY would earn $40.74 in interest.
Types of CDs
Consider different types of CDs beyond traditional options:
* Bump-up CD: Request a higher interest rate if bank rates increase.
* No-penalty CD: Withdraw funds before maturity without penalty.
* Jumbo CD: Higher minimum deposits with potentially higher rates.
* Brokered CD: Purchased through a broker, may offer higher rates or flexibility.
Top CD Accounts
Based on interest rates, fees, and other factors, our top picks for CD accounts include:
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Additional Resources
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