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. However, the Fed finally lowered its target rate in September, so now could be your last chance to lock in a competitive rate.

CD rates vary widely among financial institutions, so it’s important to make sure you’re getting the best possible rate when buying a CD. Below is a breakdown of current CD rates and where to find the best deals.

Historically, long-term CDs offered higher interest rates than short-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in the current economic climate, the opposite is true.

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As of January 12, 2025, CD rates remain high by historical standards. However, the highest CD rates can be found for shorter terms of one year or less.

Today, the highest CD rate 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 rates available today from our verified partners:

The amount of interest you can earn on a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year if you take into account the base interest rate and how often the interest is compounded (CD interest is usually compounded daily or monthly).

Let’s say you invest $1,000 in a one-year CD with an APY of 1.81% and interest compounded monthly. At the end of this year, your balance would increase to $1,018.25: your initial deposit of $1,000, plus $18.25 in interest.

Now let’s say you choose a one-year CD that offers 4% APY. In this case, your balance would increase to $1,040.74 over the same period, which includes $40.74 in interest.

The more you deposit into a CD, the more you earn. If we took our same example of a one-year CD at 4% APY, but deposited $10,000, the total balance when the CD matured would 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 the most important thing. However, fee 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 are some common types of CDs you might consider beyond traditional ones:

• CD Bump-up: This type of CD allows you to request a higher interest rate if your bank’s rates rise during the life of the account. However, you are usually only allowed to “up” your rate once.

• CD without penalty: Also known as a liquid CD, this type of CD gives you the option to withdraw your funds before maturity without paying a penalty.

• Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more) and often offer a higher interest rate in return. In today’s CD speed environment, however, the difference between traditional and jumbo CD rates may not be much.

• brokered CD: As the name suggests, these CDs are purchased through a brokerage and 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 insured by the FDIC.