The Federal Reserve has cut its federal funds rate three times in 2024, making it a good time to lock in a competitive CD rate before rates fall further. CD rates vary across financial institutions, with the best rates typically offered on shorter terms of one year or less, especially by online banks and credit unions.

As of July 12, 2025, Gainbridge® offers the highest CD rate of 5.5% APY on its 5-year CD with a minimum opening deposit of $1000. The interest you earn from a CD depends on the annual percentage rate (APY) and how often interest compounds, as it can significantly impact your total earnings.

For example, investing $1,000 in a one-year CD with 4% APY would result in a total balance of $1,040.74 at the end of the year, including $40.74 in interest. The more you deposit in a CD, the more you stand to earn, with $10,000 in a one-year CD at 4% APY resulting in a total balance of $10,407.42 at maturity.

When choosing a CD, consider the various types beyond traditional CDs that offer different benefits, such as Bump-up CDs that allow you to request a higher rate once, No-penalty CDs that let you withdraw funds without penalties, Jumbo CDs requiring higher minimum deposits for potentially higher rates, and Brokered CDs purchased through a brokerage with potentially higher rates but more risk.

Read more at Yahoo Finance: Best CD rates today, July 12, 2025 (best account provides 5.5% APY)