The Federal Reserve has reduced its federal funds rate three times in 2024, indicating a possible upcoming decline in CD rates. It is advisable to act soon and secure a competitive CD rate before rates drop further.

CD rates can vary significantly among different financial institutions, emphasizing the importance of researching and comparing rates to find the most favorable offer. Here is an analysis of current CD rates and recommendations on where to find the best deals.

Traditionally, longer-term CDs used to provide higher interest rates compared to shorter-term CDs as an incentive for savers to maintain their deposits for a longer period. However, in the present economic situation, this trend has reversed.

As of now, Marcus by Goldman Sachs is offering the highest CD rate of 4.50% APY on its 14-month CD with a minimum opening deposit of $500. LendingClub also has a 10-month CD with a 4.50% APY and requires a minimum deposit of $2,500.

To calculate how much interest you can earn with a CD, consider the annual percentage rate (APY) by factoring in the base interest rate and compounding frequency, which is typically daily or monthly for CD interest.

Beyond the interest rate, there are different types of CDs available, each offering distinct benefits. These include Bump-up CD, No-penalty CD, Jumbo CD, and Brokered CD, with varying features such as the ability to request a higher interest rate, penalty-free early withdrawals, higher minimum deposits for better rates, and CDs purchased through a brokerage instead of directly from a bank, respectively.