The Federal Reserve reduced its federal fund rate three times by 2024, so it could now be your last chance to block -on a competitive CD rate before rates down. CD rates vary widely among financial institutions, so it is important to ensure -you get the best possible price when buying a CD.

The following is a breakdown of the CD rates today and where to find the best offers.

Historically, long -term CDs offered higher interest rates than short -term CDs. This is generally due to the fact that banks would pay better rates to encourage savers to keep the money in the deposit longer. However, in the current economic climate, the opposite is true.

Check out our options for the best CD accounts available today >>

Today, the highest CD rate than 4.50% APY, which offers Marcus of Goldman Sachs On its 14 -month CD. A minimum opening deposit of $ 500 is required.

Lendclub It also offers 4.50% APY on its ten -month CD with a minimum deposit of $ 2,500.

Here is a look at some of the best CD rates available today:

The amount of interest you can win from a CD depends on the Annual percentage rate (APY). This is a measure of your total benefit after one year when considering the basic interest rate and the frequency with which the interest compounds (CD’s interest is usually composed daily or monthly).

Say to invest $ 1,000 on a one -year CD with a 1.81% APY and interest compounds monthly. By the end of this year, your balance would grow up to $ 1,018.25 – your $ 1,000 initial deposit, plus $ 18.25.

Now say you choose a one -year -old CD that offers 4% APY. In this case, your balance would grow up to $ 1,040.74 during the same period, which includes $ 40.74 in interest.

The more you place on a CD, the more you stay to win. If we took the same example of CD of a year to 4% APY, but we place $ 10,000, the total balance when the CD ripens would be $ 10,407.42, which means that it would win 407.42 $ interest. ​​

Read -Ne More: What is a good CD rate?

When choosing a CD, the interest rate is usually more important. However, the rate is not the only factor you should consider. There are several types of CDs that offer different benefits, although you may need to accept a slightly lower interest rate in exchange for more flexibility. Here are some of the common types of CDs that you can consider beyond traditional CDs:

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

• CD without penalty: Also known as the liquid CD, the type of CD offers you the option of removing your funds before the 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. However, in the environment of the current CD rate, the difference between traditional CD rates and Jumbo may not be much.

• CD intermediary: As the name implies, these CDs are bought through a corridor instead of directly from a bank. Sometimes CD Corredors can offer higher or more flexible terms or terms, but they are also more risk and may not be secured by the FDIC.