Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced a second rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The highest CD rate currently available is 4.1% APY from Marcus by Goldman Sachs for a 14-month CD as of November 22, 2025 [3] CD Rates Overview - Best CD rates are generally found in shorter terms of around one year or less, with online banks and credit unions leading in competitive rates [3] - The amount of interest earned from a CD is determined by the annual percentage rate (APY), which reflects total earnings after one year, factoring in the base interest rate and compounding frequency [3] Interest Earnings Examples - An investment of $1,000 in a one-year CD at 1.70% APY would yield a total of $1,017.13 after one year, while a 4% APY would result in a balance of $1,040.74 [4] - Increasing the deposit amount significantly boosts interest earnings; for instance, a $10,000 deposit at 4% APY would grow to $10,407.42, earning $407.42 in interest [5] Types of CDs - Various types of CDs offer different benefits, including: - **Bump-up CD**: Allows for a one-time request to increase the interest rate if the bank's rates rise during the term [5] - **No-penalty CD**: Provides the option to withdraw funds before maturity without incurring a penalty [5] - **Jumbo CD**: Requires a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference from traditional CDs may be minimal in the current environment [5] - **Brokered CD**: Purchased through a brokerage, potentially offering higher rates or flexible terms, but may carry more risk and lack FDIC insurance [5]