Discover how much you can potentially earn by securing a high certificate of deposit (CD) rate today. A certificate of deposit (CD) enables you to secure a favorable rate on your savings, aiding in the growth of your balance. However, rates can significantly differ among financial institutions, making it crucial to ensure you’re obtaining the best possible rate while exploring CD options. Below, we provide a summary of current CD rates and where to find the most competitive offers.
Traditionally, longer-term CDs offered superior interest rates compared to their shorter-term counterparts, as banks typically provided better rates to incentivize savers to maintain their deposits for extended periods. However, in the current economic conditions, this trend has reversed.
As of October 12, 2025, the pinnacle CD rate stands at 4.1% APY, offered by Marcus by Goldman Sachs on their 14-month CD.
The interest you can accrue from a CD is contingent on the annual percentage rate (APY). This metric reflects your total earnings over a year, factoring in the base interest rate and the frequency of compounding (CD interest generally compounds daily or monthly).
For instance, if you invest $1,000 in a one-year CD with a 1.70% APY, and the interest compounds monthly, your balance at the year’s end would increase to $1,017.13 — consisting of your initial $1,000 deposit and $17.13 in interest.
Conversely, if you opt for a one-year CD with a 4% APY, your balance would grow to $1,040.74 over the same duration, which incorporates $40.74 in interest.
The greater your deposit in a CD, the higher your potential earnings. If we revisit our one-year CD example at a 4% APY but with a $10,000 deposit, when the CD matures, your total balance would amount to $10,407.42, resulting in an interest gain of $407.42.
Read more: What constitutes a good CD rate?
When selecting a CD, the interest rate is often the primary focus. Nevertheless, it’s not the sole consideration. Many types of CDs provide varied advantages, although you might have to accept a slightly lower interest rate for added flexibility. Here’s an overview of some common CD types that go beyond the traditional options:
-
Bump-up CD: This variety of CD permits you to request a higher interest rate if your bank’s rates increase during the term of the account. However, typically, you can only “bump up” your rate once.
-
No-penalty CD: Frequently referred to as a liquid CD, this type allows you to withdraw your funds before maturity without incurring penalties.
-
Jumbo CD: These CDs necessitate a higher minimum deposit, generally starting at $100,000, and usually provide a higher interest rate in return. However, in the present CD rate landscape, the disparities between traditional and jumbo CD rates may be minimal.
-
Brokered CD: As indicated by the name, these CDs are acquired via a brokerage rather than directly through a bank. Brokered CDs may offer superior rates or more adaptable terms, but they also entail greater risk and might not be FDIC-insured.
