CD rates today, January 18, 2025 (best account offers 4.27% APY)

Today certificate of deposit (CD) interest rates are some of the highest we’ve seen in over a decade thanks to several rate hikes by the Federal Reserve. However, the Fed finally cut its target rate this month, 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. The following is a breakdown of CD rates today and where to find the best deals.

Historically, longer-term CDs offer higher interest rates than shorter-term CDs. Generally, this is because banks pay better rates to encourage savers to keep their money on deposit longer. However, in today’s economic climate, the opposite is true.

See our picks for the best CD accounts available today >>

Today, the highest CD rate is 4.27% APY, which is offered by NexBank on its 1-year CD term. However, there is a large minimum opening deposit of $25,000.

The next highest rate is 4.25% APY, offered by Marcus from Goldman Sachs on its 1-year CD. A minimum deposit of $500 is required.

Here’s a look at some of the best CD prices available today:

The amount of interest you can earn from a CD depends on the annual percentage (APY). This is a measure of your total earnings after one year when you consider the base interest rate and how often interest is compounded (CD interest typically compounds daily or monthly).

Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance will grow 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 instead. In this case, your balance will increase to $1,040.74 in the same period, which includes $40.74 in interest.

The more you deposit into a CD, the more you will earn. If we took our same example of a one-year CD at 4% APY, but deposited $10,000, your 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 you choose a CD, the interest rate is usually at the top. However, rate is not the only factor you should consider. There are many types of CDs that offer different benefits, but you may need to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the common types of CDs you might consider other than traditional CDs:

• Bump-up CD: : This type of CD allows you to request a higher interest rate if your bank’s rates increase during the life of the account. However, you are usually only allowed to “raise” 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 rate environment, however, the difference between traditional and jumbo CD rates may not be much.

• brokered CDs: : As the name suggests, these CDs are purchased through a brokerage instead of directly from a bank. Brokered CDs can sometimes offer higher fees or more flexible terms, but they also carry more risk and may not be insured by the FDIC.