Yields on certificates of deposit in the US remain relatively attractive and, according to Yahoo Personal Finance, the best offer available on September 19 is 4.40% APY. That rate is being offered by Happen Bank on its 2-year CD.
The report notes that the Federal Reserve cut the federal funds rate three times in 2025, while leaving rates unchanged so far in 2026. Against that backdrop, savers may be looking at one of their last opportunities to lock in a competitive CD yield if market rates move lower from here.
Yahoo Personal Finance also says CD rates vary significantly across financial institutions. The strongest offers are generally found on shorter maturities of around one year or less, particularly at online banks and credit unions.
How much a CD can earn
Returns on a CD depend on the annual percentage yield, or APY, which measures total earnings over one year after accounting for both the base interest rate and compounding frequency. CD interest is typically compounded daily or monthly.
For example, a $1,000 deposit in a 1-year CD paying 1.52% APY with monthly compounding would grow to $1,015.20 after one year. That means the depositor would earn $15.20 in interest on top of the original principal.
By comparison, a 1-year CD offering 4% APY would turn the same $1,000 into $1,040.74 over the same period, including $40.74 in interest. If the deposit were $10,000 at the same 4% APY, the balance at maturity would rise to $10,407.42, generating $407.42 in interest.
Common types of CDs
The article stresses that the interest rate is not the only factor to consider when choosing a CD. Several common structures offer different trade-offs between yield and flexibility.
Bump-up CD — allows the depositor to request a higher rate if the bank raises its rates during the term, although that option is usually available only once.
No-penalty CD — also called a liquid CD, this option allows funds to be withdrawn before maturity without paying a penalty.
Jumbo CD — requires a larger minimum deposit, usually $100,000 or more, and often pays a higher rate. In the current market, however, the gap between traditional and jumbo CD yields may be limited.
Brokered CD — is purchased through a brokerage rather than directly from a bank. It can sometimes offer higher yields or more flexible terms, but it may involve additional risk and might not be FDIC-insured.
In effect, the piece serves as a reminder that savers comparing high-yield CDs should look beyond the headline rate and weigh the term, withdrawal rules and account structure as well. Those details can make a meaningful difference to overall returns in the current rate environment.
