Top CD Rates for August 31, 2025: Secure Up to 4.45% APY

Overview of Certificate of Deposit (CD) Rates

• Current CD Rates: As of August 31, 2025, the highest CD rate available is 4.45% APY, offered by LendingClub for an 8-month CD.
• Interest Calculation: The interest earned from a CD is determined by the annual percentage rate (APY), which reflects total earnings after one year, factoring in the base interest rate and compounding frequency.

Interest Earnings Examples

• Example with $1,000 Investment: Investing $1,000 in a one-year CD at 1.81% APY with monthly compounding results in a total balance of $1,018.25 after one year, yielding $18.25 in interest.
• Higher APY Example: A one-year CD at 4% APY would grow the same $1,000 investment to $1,040.74, earning $40.74 in interest.
• Larger Deposits: For a $10,000 deposit in a one-year CD at 4% APY, the total balance at maturity would be $10,407.42, resulting in $407.42 in interest.

Types of CDs and Their Features

• Bump-up CD: Allows one request for a higher interest rate if the bank's rates increase during the term.
• No-penalty CD: Offers the flexibility to withdraw funds before maturity without incurring a penalty.
• Jumbo CD: Requires a minimum deposit of $100,000 or more, typically offering higher interest rates, though the difference may be minimal in the current market.
• Brokered CD: Purchased through a brokerage, these may offer higher rates or flexible terms but carry more risk and may not be FDIC-insured.

Additional CD Options

• Promotional CDs: Limited-time offers that can provide higher rates for a short duration.
• Step-up CDs: Increase interest rates at regular intervals, though they may not be the best option compared to other savings methods.
• Minimum Deposit Considerations: Some CDs have no minimum deposit requirements, making them accessible for new savers.

Conclusion on CD Investments

• Investment Viability: Whether a CD is a good investment depends on individual timelines and financial goals, with various types of CDs available to suit different needs.