CD Rates Today, August 31, 2024 (best account offers 4.70% APY)

Interest rates on certificates of deposit (CDs) today are some of the highest we’ve seen in more than a decade, thanks to several rate hikes by the Federal Reserve. However, CD rates vary widely among financial institutions, so it’s important to make sure you’re getting the best possible rate when shopping for a CD. Below is a breakdown of today’s CD rates and where you can find the best deals.

Overview of CD rates today

Historically, longer-term CDs have offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit for longer. However, in today’s economic climate, the opposite is true.

See our picks for the best CD accounts available today>>

As of August 31, 2024, CD rates remain competitive overall. However, the highest CD rates can be found for shorter periods of about a year or less.

Today, the highest CD rate available is offered by Marcus by Goldman Sachs on its 1-year CD. Account holders can earn 4.70% APY with a minimum deposit of $500.

You may also find CDs with longer terms of two years or more that offer competitive rates, though they’re closer to about 4% to 4.5% APY.

Here’s a look at some of the best CD prices available today from our verified partners:

How much interest can I earn with a CD?

The amount of interest you can earn on 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 the interest is compounded (CD interest is usually compounded daily or monthly).

Let’s say you invest $1,000 in a one-year CD with 1.81% APY and interest compounded monthly. At the end of that year, your balance will grow to $1,018.25 – your original $1,000 deposit, plus $18.25 in interest.

Now let’s say you choose a one-year CD that offers 5% APY instead. In this case, your balance would increase to $1,051.16 over the same period, which includes $51.16 in interest.

The more you put into a CD, the more you earn. If we take the same example of a one-year CD at 5% APY, but deposit $10,000, your total balance when the CD matures would be $10,511.62, meaning you would earn $511.62 in interest. ​

Read more: What is a good CD rate?

Types of CDs

When choosing a CD, the interest rate is usually the most important. However, rate is not the only factor you should consider. There are several types of CDs that offer different benefits, although you may have to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the common types of CDs you might consider beyond traditional CDs:

• Bump-up CD: This type of CD allows you to claim higher interest if your bank’s rates rise over the life of the account. However, you are usually only allowed to “step up” your rate once.

• CD without penalty: Also known as a liquid CD, this type of CD gives you the option to withdraw your funds before maturity without paying a penalty.

• Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more) and often offer a higher interest rate in return. In today’s CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.

• Intermediate CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and may not be insured by the FDIC.