Are you looking to maximize your savings and earn more from your money? One way to do that is by investing in a certificate of deposit (CD) with a high interest rate. A CD allows you to lock in a competitive rate and watch your balance grow over time. However, with rates varying widely across financial institutions, it’s important to shop around and find the best offer available.
Historically, longer-term CDs used to offer higher interest rates than shorter-term CDs. Banks would incentivize savers to keep their money on deposit for longer periods by offering better rates. However, in today’s economic climate, the opposite is true.
As of March 8, 2026, the highest CD rate available is 4% APY offered by Marcus by Goldman Sachs on their 1-year CD. This rate can help your savings grow significantly over time.
The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base interest rate and how often interest compounds (usually daily or monthly).
For example, if you invest $1,000 in a one-year CD with a 1.55% APY and interest compounds monthly, your balance would grow to $1,015.61 at the end of the year. However, if you choose a one-year CD with a 4% APY instead, your balance would grow to $1,040.74, earning you $40.74 in interest.
The more you deposit in a CD, the more you stand to earn. For instance, if you deposit $10,000 in a one-year CD with a 4% APY, your total balance at maturity would be $10,407.42, earning you $407.42 in interest.
When selecting a CD, it’s important to consider factors beyond just the interest rate. There are different types of CDs that offer various benefits, although you may need to accept a slightly lower interest rate for added flexibility. Some common types of CDs include:
– Bump-up CD: Allows you to request a higher interest rate if your bank’s rates go up during the account’s term.
– No-penalty CD: Also known as a liquid CD, this type allows you to withdraw funds before maturity without paying a penalty.
– Jumbo CD: Requires a higher minimum deposit and often offers higher interest rates in return.
– Brokered CD: Purchased through a brokerage and can offer higher rates or more flexible terms, but may carry more risk and not be FDIC-insured.
By exploring these different CD options and finding the best rate available, you can make the most of your savings and watch your money grow over time.
