Federal Reserve cuts signal potential decrease in CD rates, highest at 4.40% APY from Marcus by Goldman Sachs.

From Yahoo Finance: 2025-04-19 06:00:00

The Federal Reserve has cut its federal funds rate three times in 2024, signaling a potential decrease in CD rates. Currently, the highest CD rate is 4.40% APY on a 14-month CD with a $500 minimum deposit at Marcus by Goldman Sachs. Online banks and credit unions typically offer the best CD rates on shorter terms.

Earning potential from a CD depends on the annual percentage rate (APY) and how often interest compounds. A one-year CD with 1.81% APY and monthly compounding would yield $18.25 in interest on a $1,000 deposit. Choosing a CD with 4% APY could earn $40.74 in interest on the same deposit.

The more you deposit in a CD, the more you can earn in interest. For example, a $10,000 deposit in a one-year CD with 4% APY could yield $407.42 in interest. It’s important to consider the interest rate, but also explore different types of CDs for added benefits and flexibility, such as bump-up CDs, no-penalty CDs, jumbo CDs, and brokered CDs.



Read more at Yahoo Finance: Best CD rates today, April 19, 2025 (best account provides 4.40% APY)