Best CD rates today, April 20, 2025 (up to 4.40% APY)

A certificate of deposit (CD) is a great way to earn a competitive rate on your savings and watch your balance grow over time. With rates varying widely across financial institutions, it’s essential to shop around to ensure you’re getting the best possible rate on your CD. Historically, longer-term CDs typically offered higher interest rates than shorter-term CDs, as banks incentivized savers to keep their money in the account for longer periods. However, in today’s economic climate, the opposite is true.

Today, one of the highest CD rates available is 4.40% APY, offered by Marcus by Goldman Sachs on its 14-month CD with a minimum opening deposit of $500. When investing in a CD, the amount of interest you can earn depends on the annual percentage rate (APY), which considers the base interest rate and how often interest compounds. For example, investing $1,000 in a one-year CD with 1.81% APY and monthly compounding would result in a balance of $1,018.25 at the end of the year.

If you opt for a one-year CD with a 4% APY instead, your balance would grow to $1,040.74, including $40.74 in interest. The more you deposit in a CD, the more you stand to earn. For instance, depositing $10,000 in a one-year CD with 4% APY would result in a total balance of $10,407.42 at maturity, earning $407.42 in interest.

While interest rates are crucial when selecting a CD, it’s essential to consider other factors as well. There are various types of CDs available, each offering different benefits and flexibility. Some common types of CDs beyond traditional CDs include:

– Bump-up CD: Allows you to request a higher interest rate if your bank’s rates increase during the account’s term, typically with a one-time rate adjustment.
– No-penalty CD: Also known as a liquid CD, this type allows you to withdraw funds before maturity without incurring a penalty.
– Jumbo CD: Requires a higher minimum deposit (usually $100,000 or more) and may offer higher interest rates, although the difference in rates between traditional and jumbo CDs may be minimal.
– Brokered CD: Purchased through a brokerage rather than directly from a bank, these CDs may offer higher rates or more flexible terms but carry more risk and may not be FDIC-insured.

When choosing a CD, consider the interest rate, type of CD, and your financial goals to find the best option for your savings. With the right CD, you can watch your money grow steadily while ensuring it’s safe and secure.