Summary: Lock in high CD rates today with rates up to 4.4% APY, consider different CD types

From Yahoo Finance: 2025-06-22 06:00:00

Lock in a high CD rate today to help your savings grow. Rates vary across financial institutions, so it’s important to shop around for the best offers. Historically, longer-term CDs offered higher rates, but in today’s climate, shorter-term CDs may offer better rates. The highest CD rate as of June 22, 2025, is 4.4% APY on a 3-month CD from Western Alliance Bank with a $1 minimum deposit. The interest you earn from a CD depends on the annual percentage rate (APY) and how often interest compounds. For example, investing $1,000 in a one-year CD with 1.81% APY and monthly compounding would grow to $1,018.25. Choosing a one-year CD with 4% APY would grow to $1,040.74, including $40.74 in interest. The more you deposit in a CD, the more you stand to earn. For example, a one-year CD at 4% APY with a $10,000 deposit would grow to $10,407.42, earning $407.42 in interest. When choosing a CD, consider more than just the interest rate. Different types of CDs offer various benefits, such as a Bump-up CD that allows for a higher rate if bank rates go up, a No-penalty CD that allows for withdrawals without penalty, a Jumbo CD that requires a higher minimum deposit for potentially higher rates, and a Brokered CD purchased through a brokerage with potentially higher rates but more risk and no FDIC insurance.

Read more: Best CD rates today, June 22, 2025 (lock in up to 4.4% APY)