Highest CD rate hits 4% APY on 14-month term
A certificate of deposit (CD) allows savers to lock in a competitive rate on their savings. Historically, longer-term CDs offered higher interest rates than shorter-term CDs.
The highest CD rate is currently 4% APY, offered by Marcus on its 14-month CD. This rate can earn significant interest, with a $1,000 investment growing to $1,040.74 over one year.
For comparison, a one-year CD with 1.52% APY would earn $15.20 in interest on a $1,000 deposit, growing to $1,015.20. CD rates vary widely across financial institutions, making it essential to shop around for the best rate.
CD interest typically compounds daily or monthly, with the annual percentage rate (APY) measuring total earnings after one year.