Today’s CD Rates, February 8, 2025 (Best Accounts offer 4.40% APY)

The Federal Reserve cut the federal funding rate three times in 2024, which could be the last chance to lock up a competitive CD rate before the rate drops further.

CD rates vary widely from financial institution to financial institution, so it is important to get the best possible rate when purchasing a CD. Below is a breakdown of today’s CD rates and where to find the best offers.

Historically, long-term CDs offered higher interest rates than short-term CDs. Generally, this is because banks pay better fees and encourage savers to keep their money longer. But in today’s economic situation, the opposite is true.

Check out the best CD account picks available today >>

Today, Nexbank offers the highest CD rate of 4.40% APY on CDs for a year. A minimum deposit of $25,000 is required.

This looks at some of the best CD rates available today:

The amount of interest you can earn from a CD is Annual rate (apy). This is a measure of total revenue after one year taking into account the base interest rate and frequency of interest compounds (usually there is interest in the monthly or monthly compound CD).

Invest $1,000 in a one-year CD with 1.81% APY and invest the interest compound monthly. At the end of the year, your balance will grow to $1,018.25. In addition to the initial $1,000 deposit, the interest is $18.25.

Now let’s say you chose a one-year CD that offers 4% APY instead. In this case, the balance will increase to $1,040.74 over the same period, including $40.74 in interest.

The more you deposit into the CD, the more you earn. If you earned the same example of a one-year CD at 4% APY, but deposited $10,000, you have a total balance when the CD maturity is $10,407.42. になったんです。 English: The first thing you can do is to find the best one to do.

read more: What is a good CD rate?

When choosing a CD, the interest rate is usually the highest in your heart. However, rates are not just factors to consider. There are several types of CDs that offer a variety of benefits, but you may need to accept slightly lower interest rates in exchange for flexibility. Let’s take a look at some of the common types of CDs that can be considered beyond traditional CDs.

• Bump Up CD: This type of CD allows you to request a higher interest rate if your bank rate increases during the period of your account. However, you can usually “up” your rate only once.

• No penalty CD: A type of CD, also known as a Liquid CD, offers the option to withdraw funds before maturity without paying a penalty.

• Jumbo CD: These CDs require a higher minimum deposit (usually over $100,000) and often offer higher interest rates. However, in today’s CD rate environment, the difference between traditional CD rates and jumbo CD rates may not be as great.

• Mediation CD: As the name suggests, these CDs are purchased from the brokerage company rather than directly from the bank. Mediated CDs may offer higher rates or more flexible terms, but may involve more risk and may not have FDIC insurance.