Today’s deposit receipt (CD) interest rates are some of 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 in September, so now may be your last chance to get a competitive rate.
CD prices vary widely among financial institutions, so it’s important to make sure you’re getting the best possible price when buying a CD. The following is an overview of today’s CD prices and where to find the best deals.
Historically, longer-term CDs have offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage depositors to keep their money on deposit for longer. However, in today’s economic climate, the opposite is true.
Check out our picks for the best CD accounts available today>>
As of January 5, 2025, CD prices remain high by historical standards. However, the highest CD prices can be found for shorter periods of about a year or less.
Today, the highest CD rate of 4.25% APY, offered by Marcus by Goldman Sachs on its 1-year CD. A minimum deposit of $500 is required.
Here’s a look at some of the best CD prices available today from our trusted partners:
The amount of interest you can earn from a CD depends on annual percentage rate (APY). This is a measure of your total earnings after one year when taking into account the base interest rate and how often interest is charged (CD interest is usually charged daily or monthly).
Let’s say you invest $1,000 in a one-year CD with 1.81% APY, and interest is compounded monthly. At the end of that year, your balance will grow to $1,018.25 — the initial $1,000 deposit, plus $18.25 in interest.
Let’s say instead you choose a one-year CD that offers 4% APY. In that case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest.
The more you deposit into a CD, the more you’ll earn. If we take our same example of a 1-year CD with 4% APY, but deposit $10,000, your total balance when the CD matures will be $10,407.42, meaning you would earn $407.42 in interest.
Read more: What is a good CD rate?
When choosing a CD, the interest rate is usually on the mind. However, rate is not the only factor you should consider. There are several types of CDs that offer different benefits, although you may have to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the more common types of CDs to consider besides traditional CDs:
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Bump-up CD: This type of CD allows you to claim a higher interest rate if your bank’s rates rise over the life of the account. However, you are usually only allowed to “raise” your rate once.
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CD without penalty: Also known as a current CD, this type of CD gives you the ability to withdraw funds before maturity without paying a penalty.
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Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more) and often offer a higher interest rate in return. However, in today’s CD speed environment, the difference between traditional and jumbo CD rates may not be large.
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Mediated by CD: As the name suggests, these CDs are purchased through a brokerage, not directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and may not be FDIC insured.
