Core Insights - The current economic climate has led to shorter-term CDs offering higher interest rates compared to longer-term CDs, which is a reversal of historical trends [2] Group 1: CD Rates Overview - As of October 12, 2025, the highest CD rate available is 4.1% APY, offered by Marcus by Goldman Sachs on a 14-month CD [2] - The amount of interest earned from a CD is determined by the annual percentage rate (APY), which accounts for the base interest rate and compounding frequency [3] Group 2: Interest Earnings Examples - Investing $1,000 in a one-year CD with 1.70% APY results in a total balance of $1,017.13 after one year, yielding $17.13 in interest [4] - A one-year CD with 4% APY would grow the same $1,000 investment to $1,040.74, resulting in $40.74 in interest [4] - A $10,000 investment in a one-year CD at 4% APY would mature to $10,407.42, earning $407.42 in interest [5] Group 3: Types of CDs - Bump-up CDs allow for a one-time request to increase the interest rate if the bank's rates rise during the term [5] - No-penalty CDs permit early withdrawal without penalties, providing more flexibility [5] - Jumbo CDs require a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal in the current environment [5] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms, but they carry more risk and may not be FDIC-insured [5]

Core Insights - The article discusses the current landscape of certificate of deposit (CD) rates, highlighting the importance of securing competitive rates for savings [1][2]. Group 1: CD Rates Overview - Historically, longer-term CDs offered higher interest rates than shorter-term CDs, but the current economic climate has reversed this trend [2]. - As of September 28, 2025, the highest CD rate available is 4.45% APY, offered by LendingClub for an 8-month CD [2]. Group 2: Interest Earnings from CDs - The interest earned from a CD is determined by the annual percentage rate (APY), which reflects total earnings after one year, factoring in the base interest rate and compounding frequency [3]. - For example, a $1,000 investment in a one-year CD at 1.70% APY would yield a total balance of $1,017.13, while a 4% APY would result in a balance of $1,040.74 [4]. Group 3: Deposit Amount Impact - The amount deposited in a CD directly affects the interest earned; a $10,000 deposit in a one-year CD at 4% APY would grow to $10,407.42, earning $407.42 in interest [5]. Group 4: Types of CDs - Various types of CDs offer different benefits, which may include: - Bump-up CD: Allows for a one-time request for a higher interest rate if bank rates increase during the term [5]. - No-penalty CD: Enables early withdrawal without penalties [5]. - Jumbo CD: Requires a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates [5]. - Brokered CD: Purchased through a brokerage, potentially offering higher rates or flexible terms but with increased risk and possible lack of FDIC insurance [5].

Core Insights - The current economic climate has led to shorter-term CDs offering higher interest rates compared to longer-term CDs, which is a reversal of historical trends [2] Group 1: CD Rates Overview - As of September 21, 2025, the highest CD rate available is 4.45% APY, offered by LendingClub for an 8-month CD [2] - The amount of interest earned from a CD is determined by the annual percentage rate (APY), which accounts for the base interest rate and compounding frequency [3] Group 2: Interest Earnings Examples - Investing $1,000 in a one-year CD with 1.70% APY results in a total balance of $1,017.13 after one year, yielding $17.13 in interest [4] - A one-year CD with 4% APY would grow the same $1,000 investment to $1,040.74, resulting in $40.74 in interest [4] - A $10,000 investment in a one-year CD at 4% APY would yield a total balance of $10,407.42, earning $407.42 in interest [5] Group 3: Types of CDs - Bump-up CDs allow for a one-time request to increase the interest rate if the bank's rates rise during the term [5] - No-penalty CDs permit early withdrawal without penalties, providing more liquidity [5] - Jumbo CDs require a higher minimum deposit, typically $100,000 or more, and may offer higher interest rates, though the difference may be minimal in the current environment [5] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms, but they carry more risk and may not be FDIC-insured [5]