As of September, a $40,000 3-year certificate of deposit (CD) can earn interest at rates as high as 4.50%, according to a recent report. These rates are up from earlier in the year, such as July, when the highest rate available was 4.15%, and June 2025, where rates were typically around 4.00%. CDs are a type of savings account that offers a fixed interest rate for a set period, typically with penalties for early withdrawal. At a 4.35% interest rate, a $40,000 CD would earn about $5,450.36 in interest over three years. At 4.40%, the interest would be approximately $5,646.64, and at 4.50%, it would reach $5,515.73. These figures assume no early withdrawal penalties and that the CD is held until its maturity date. However, not all banks offer the same rates, so it's important for savers to shop around and compare options before making a long-term commitment. The Federal Reserve, the central banking system of the United States, is expected to make a decision on interest rates during a meeting on September 16. According to the CME Group’s FedWatch tool, there is a 58% chance that the Fed will raise interest rates at this meeting. Such a move could further impact CD rates, potentially increasing them further, though the exact effect remains uncertain. It’s important to note that a 3-year CD requires the investor to leave their money in the account for the full term. If the funds are needed earlier, the account holder may face penalties, which can significantly reduce the overall return. For those looking to maximize their savings, careful planning and an understanding of the terms of the CD are essential before committing to this type of investment.