With the Federal Reserve cutting rates, it’s a good time to lock in high CD rates. The best offers are usually found on shorter terms, with online banks and credit unions leading the way. Sallie Mae Bank and Synchrony Bank offer the highest rates at 4.1% APY.

Interest earned on a CD depends on the APY and compounding frequency. Investing $1,000 in a one-year CD with 1.63% APY and monthly compounding would yield $16.42 in interest. Opting for a 4% APY CD would result in $40.74 in interest.

The more you deposit in a CD, the more you can earn. For instance, a $10,000 investment in a one-year CD at 4% APY would yield $407.42 in interest. Different CD types offer various benefits, like the Bump-up CD, No-penalty CD, Jumbo CD, and Brokered CD.

Read more at Yahoo Finance: Best CD rates today, December 27, 2025 (best account provides 4.1% APY)