How does the Current CD Rate differ from the Theoretical APY?
All certificates of deposit (CDs) earn a rate of interest. It is the contractual rate of interest the issuer agrees to pay for the time of deposit. This interest rate can be paid out periodically, such as monthly, or it can be paid at maturity. The CD rates that FISN posts on its CD web site are representative of the best CD rates for each term that we see in the market when the table was last updated. We label them on our table as the Current CD Rates. They don’t necessarily relate to just one institution’s rates. There could be one or many issuers paying the top rate. And, the CD market is changing all the time.
