Federal reserve cuts rates, CD rates may decrease, best CD rate at 4.50%

From Yahoo Finance: 2025-04-12 06:00:00

The Federal Reserve has cut its federal funds rate three times in 2024, signaling potential CD rate decreases. It’s crucial to secure a competitive rate now. Online banks and credit unions typically offer the best CD rates on shorter terms of one year or less. Marcus by Goldman Sachs currently offers the highest CD rate at 4.50% APY on a 14-month CD with a $500 minimum opening deposit. Interest earned on a CD depends on the annual percentage rate (APY) and compounding frequency. For example, a one-year CD with 4% APY could earn $40.74 in interest on a $1,000 investment. The more you invest in a CD, the more interest you can earn. A $10,000 deposit in a one-year CD at 4% APY could yield $407.42 in interest. When selecting a CD, consider factors beyond just interest rates. Different types of CDs like bump-up, no-penalty, jumbo, and brokered CDs offer various benefits that may suit your financial goals better.



Read more at Yahoo Finance: Best CD rates today, April 12, 2025 (best account provides 4.50% APY)