The Federal Reserve has cut its federal funds rate three times in 2025, making now a good time to lock in a competitive CD rate before rates fall further. CD rates vary across financial institutions, with the highest rate currently at 4% APY offered by Marcus by Goldman Sachs on its 1-year CD.

When investing in a CD, the annual percentage rate (APY) determines your total earnings after one year. For example, a $1,000 investment in a 1-year CD with 4% APY would grow to $1,040.74, including $40.74 in interest. The more you deposit, the more you can earn, as seen with a $10,000 deposit earning $407.42 in interest.

Consider different types of CDs beyond traditional ones, like a Bump-up CD that allows a one-time rate increase, a No-penalty CD for early withdrawals, a Jumbo CD with higher minimum deposits, and a Brokered CD purchased through a brokerage. Each type offers different benefits and risks to consider when choosing a CD.

Read more at Yahoo Finance: Best CD rates today, January 17, 2026 (best account provides 4% APY)