The Federal Reserve recently announced its second rate cut of 2025, making it a good time to lock in a competitive CD rate before rates fall further. Online banks and credit unions typically offer the best CD rates on shorter terms, with the highest CD rate currently at 4.1% APY.

Interest earned from a CD depends on the APY and how often interest compounds. For example, a one-year CD at 4% APY could earn you $40.74 in interest on a $1,000 deposit. The more you invest in a CD, the more you stand to earn, with a $10,000 deposit potentially earning you $407.42 in interest.

When choosing a CD, consider factors beyond just the interest rate. Different types of CDs offer varying benefits, such as bump-up CDs that allow you to request a higher rate, no-penalty CDs that let you withdraw funds early, jumbo CDs that require 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, November 29, 2025 (best account provides 4.1% APY)