Are you looking to make the most of your savings by locking in a high CD rate? A certificate of deposit (CD) can be a great way to grow your balance with a competitive interest rate. However, with rates varying widely across financial institutions, it’s crucial to find the best offer available. Let’s dive into the current landscape of CD rates and where to find the top deals.
In the past, longer-term CDs typically offered higher interest rates compared to shorter-term CDs. This was a strategy used by banks to incentivize savers to keep their money deposited for a longer period. However, in today’s economic climate, the opposite is true.
As of August 10, 2025, GainbridgeĀ® is offering the highest CD rate at 5.5% APY on their 5-year CD, with a minimum opening deposit requirement of $1000. The interest you can earn from a CD is determined by the annual percentage rate (APY), which takes into account the base interest rate and how often interest compounds.
For example, if you invest $1,000 in a one-year CD with 1.81% APY and monthly compounding, your balance would grow to $1,018.25 at the end of the year, including $18.25 in interest. Choosing a one-year CD with a 4% APY would result in a balance of $1,040.74 at the end of the year, with $40.74 in interest.
The more you deposit in a CD, the more you can earn. If you deposit $10,000 in a one-year CD at 4% APY, your total balance at maturity would be $10,407.42, earning you $407.42 in interest.
When selecting a CD, the interest rate is important, but there are other factors to consider as well. Different types of CDs offer various benefits, and you may have to trade a slightly lower interest rate for more flexibility. Some common types of CDs include:
– Bump-up CD: Allows you to request a higher interest rate if your bank’s rates increase, usually limited to one rate adjustment.
– No-penalty CD: Also known as a liquid CD, this type allows you to withdraw funds before maturity without penalties.
– Jumbo CD: Requires a higher minimum deposit (often $100,000 or more) and may offer a higher interest rate in return.
– Brokered CD: Purchased through a brokerage instead of directly from a bank, potentially offering higher rates or more flexible terms, but with added risk and possible lack of FDIC insurance.
Consider these options when exploring CD offers to find the best fit for your financial goals. Locking in a high CD rate today can help your savings grow steadily over time.
