The Federal Reserve has lowered the federal funds rate three times in 2024, making now a good opportunity to secure a competitive CD rate before potential further rate decreases.

When looking for a CD, it's crucial to compare rates offered by different financial institutions to ensure you get the best deal. Today's economic conditions have reversed the trend where longer-term CDs used to offer higher interest rates compared to shorter-term CDs.

Currently, the top CD rate is 4.50% APY, available at Marcus by Goldman Sachs for a 14-month CD with a minimum deposit of $500. LendingClub is also offering a 4.50% APY on a 10-month CD with a minimum deposit of $2,500.

Earning interest from a CD depends on the annual percentage yield (APY), which calculates your total earnings over a year considering the base interest rate and how often interest is compounded.

Depending on the interest rate and the amount deposited, your CD earnings can vary significantly. Beyond the interest rate, there are different types of CDs to consider, such as bump-up CDs, no-penalty CDs, jumbo CDs, and brokered CDs, each offering unique benefits and features that may affect your decision.