Exploring Today’s Certificate of Deposit (CD) Interest Rates: Where to Find the Best Offers

Today’s certificate of deposit (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. Still, CD rates vary widely across financial institutions, so it’s important to ensure you’re getting the best rate possible when shopping around for a CD. As of June 15, 2024, CD rates remain competitive across the board, with the highest rates for shorter terms of around one year or less standing at about 5.00% APY and slightly higher.

The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds. For example, investing $1,000 in a one-year CD with 5% APY would result in a balance of $1,051.16 at the end of the year, including $51.16 in interest.

When choosing a CD, the interest rate is usually top of mind, but there are also different types of CDs to consider. These include bump-up CDs, which allow you to request a higher interest rate if rates go up, no-penalty CDs that allow for early withdrawals without penalty, jumbo CDs that require a higher minimum deposit for potentially higher rates, and brokered CDs purchased through a brokerage with potentially higher rates but more risk.

Overall, with CD rates at some of the highest levels in years, it’s a good time to explore your options and find the best CD rate for your financial goals.