If you’re looking to maximize your savings and earn more on your money, a certificate of deposit (CD) could be a great option for you. By locking in a high CD rate today, you can watch your balance grow over time. However, with rates varying widely across financial institutions, it’s crucial to shop around and ensure you’re getting the best rate possible.
Historically, longer-term CDs typically offered higher interest rates compared to shorter-term CDs. This was because banks wanted to incentivize savers to keep their money on deposit for a longer period. However, in today’s economic climate, the opposite is true.
As of today, Sunday, July 5, 2026, the highest CD rate available is 4.10% APY. This competitive rate is offered by Marcus by Goldman Sachs on its 14-month CD.
When it comes to calculating how much interest you can earn with a CD, it all depends on the annual percentage rate (APY). This figure takes into account the base interest rate and how often interest compounds, which is typically daily or monthly for CDs.
For example, if you invest $1,000 in a one-year CD with a 1.52% APY and monthly compounding, your balance would grow to $1,015.20 at the end of the year. Choosing a higher APY of 4% for the same duration would result in a balance of $1,040.74, including $40.74 in interest.
The more you deposit in a CD, the more you stand to earn in interest. For instance, if you deposited $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 considering the types of CDs available, it’s not just about the interest rate. There are different types of CDs that offer various benefits, even if it means accepting a slightly lower interest rate. Some common types include:
– Bump-up CD: Allows you to request a higher interest rate if rates increase during the CD’s term.
– No-penalty CD: Allows you to withdraw funds before maturity without penalty.
– Jumbo CD: Requires a higher minimum deposit and may offer a higher interest rate.
– Brokered CD: Purchased through a brokerage and may offer higher rates or more flexible terms, but carry more risk.
In conclusion, by exploring your options and finding the best CD rate for your financial goals, you can make the most of your savings and watch your money grow over time.
