Core Insights - The Federal Reserve has cut its federal funds rate three times in 2025, making it a critical time for investors to lock in competitive CD rates before potential further declines [1] - The highest CD rate available as of January 31, 2026, is 4% APY, offered by Marcus by Goldman Sachs for a one-year CD [2] CD Rates Overview - Best CD rates are currently found in shorter terms, particularly around one year or less, with online banks and credit unions leading in competitive rates [2] - The amount of 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 [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD with 1.61% APY would yield a total balance of $1,016.22 after one year, including $16.22 in interest [3] - Conversely, a one-year CD with a 4% APY would grow the same investment to $1,040.74, resulting in $40.74 in interest [3] Deposit Impact on Earnings - Increasing the deposit amount in a CD significantly enhances potential earnings; for example, a $10,000 deposit in a one-year CD at 4% APY would result in a total balance of $10,407.42, yielding $407.42 in interest [4] Types of CDs - Various types of CDs offer different benefits, which may include accepting a lower interest rate for added flexibility [4] - Bump-up CD: Allows for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - No-penalty CD: Enables early withdrawal without penalties [4] - Jumbo CD: Requires a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal [4] - Brokered CD: Purchased through a brokerage, potentially offering higher rates or flexible terms but carries more risk and may not be FDIC-insured [4]

Key Takeaways Despite three Fed rate cuts at the end of last year, the top CD rate climbed from 4.30% to 4.50% earlier this month. Banks and credit unions compete for deposits, and a single standout offer can reset the leading CD rate. Shopping around for a competitive rate is important for ensuring your savings stay ahead of today's elevated inflation. The Federal Reserve left its benchmark interest rate unchanged today, marking its first rate hold after cutting it at its final three meetings las ...

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and three times in 2025, indicating a potential decline in competitive CD rates in the future [1] - The best CD rates are currently found in shorter terms, particularly around one year or less, with online banks and credit unions leading in offering competitive rates [2] CD Rates Overview - As of January 3, 2026, the highest CD rate available is 4.1% APY from LendingClub for an 8-month CD [2] - 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 [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD at 1.63% APY would yield a total balance of $1,016.42 after one year, with $16.42 earned in interest [3] - Conversely, a one-year CD at 4% APY would grow the balance to $1,040.74, resulting in $40.74 in interest [3] Deposit Impact on Earnings - A deposit of $10,000 in a one-year CD at 4% APY would result in a total balance of $10,407.42 at maturity, earning $407.42 in interest [4] 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 [4] - No-penalty CDs permit early withdrawal without penalties, providing more liquidity [4] - Jumbo CDs require higher minimum deposits (typically $100,000 or more) and may offer higher interest rates, though the difference may be minimal in the current environment [4] - Brokered CDs are purchased through brokerages and may offer higher rates or flexible terms but carry additional risks and may not be FDIC-insured [4]

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced a second rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The best CD rates are currently found in shorter terms, particularly from online banks and credit unions, with the highest rate at 4.1% APY as of November 29, 2025 [3] CD Rates Overview - The highest CD rates are typically offered for terms of one year or less, with online banks and credit unions leading in competitive rates [3] - As of November 29, 2025, Marcus by Goldman Sachs and Sallie Mae offer the highest CD rates at 4.1% APY for their respective 14-month and 15-month CDs [3] Interest Earnings - 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 $17.13 in interest, while a 4% APY would yield $40.74 [4] Deposit Impact - The amount deposited in a CD significantly affects the total interest earned; a $10,000 deposit in a one-year CD at 4% APY would result in $407.42 in interest [5] Types of CDs - Various types of CDs offer different benefits, including: - Bump-up CD: Allows for a one-time rate increase if bank rates rise during the term [5] - No-penalty CD: Enables early withdrawal without penalties [5] - Jumbo CD: Requires a higher minimum deposit (usually $100,000 or more) and may offer higher rates [5] - Brokered CD: Purchased through a brokerage, potentially offering higher rates but with increased risk and possible lack of FDIC insurance [5]

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced its first rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The highest CD rate available as of November 1, 2025, is 4.1% APY offered by Marcus by Goldman Sachs for a 14-month CD, with shorter-term CDs generally providing the best rates [2] - The interest earned from a CD is influenced by the annual percentage rate (APY) and the frequency of interest compounding, with examples illustrating the difference in earnings based on varying APYs [3] CD Rates Overview - Best CD rates are currently found in shorter terms of around one year or less, particularly from online banks and credit unions [2] - A $1,000 investment in a one-year CD at 1.70% APY would yield a total of $1,017.13 after one year, while a 4% APY would result in $1,040.74 [3] - Increasing the deposit amount significantly boosts potential earnings, as a $10,000 investment at 4% APY would grow to $10,407.42 [4] Types of CDs - Various types of CDs offer different benefits, including Bump-up CDs, No-penalty CDs, Jumbo CDs, and Brokered CDs, each with unique features and potential trade-offs in interest rates [4] - Bump-up CDs allow for a one-time request for a higher interest rate if rates increase during the term [4] - No-penalty CDs permit early withdrawal without penalties, while Jumbo CDs require higher minimum deposits and may offer slightly better rates [4]

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced its first rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The best CD rates are currently found in shorter terms, particularly from online banks and credit unions, with the highest rate at 4.25% APY as of October 18, 2025 [2] CD Rates Overview - The highest CD rate available today is 4.25% APY, offered by LendingClub for an 8-month CD and by United Fidelity Bank for 10- and 18-month CDs [2] - 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 [2] Interest Earnings Example - An investment of $1,000 in a one-year CD at 1.70% APY would yield a total balance of $1,017.13, while a one-year CD at 4% APY would grow to $1,040.74 [3] Deposit Impact on Earnings - A deposit of $10,000 in a one-year CD at 4% APY would result in a total balance of $10,407.42 at maturity, earning $407.42 in interest [4] 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 [4] - No-penalty CDs permit early withdrawal without penalties, providing more flexibility [4] - 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 [4] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms but carry more risk and may not be FDIC-insured [4]

Interest Rate Trends - The nation-leading CD rate was previously 4.60% [1] - Savers can still secure rates of at least 4.50% for terms of 6 to 21 months [1]