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

To maximize earnings, consider a CD with a higher APY. For example, a 4% APY on a one-year CD could earn you $40.74 in interest on a $1,000 investment, or $407.42 on a $10,000 deposit. Interest compounds daily or monthly, affecting total earnings.

When choosing a CD, consider factors beyond just the interest rate. Different types of CDs offer various benefits, such as bump-up CDs that allow for a rate increase, no-penalty CDs for early withdrawals, jumbo CDs that require higher deposits, and brokered CDs purchased through a brokerage for potentially higher rates.

Read more at Yahoo Finance: Best CD rates today, January 31, 2026 (best account provides 4% APY)