Today's certificate of deposit (CD) rates are the highest in more than a decade, thanks to multiple rate hikes by the Federal Reserve. However, the Fed finally lowered its target rate in September, so now may be your last chance to lock in a competitive rate.

CD interest rates vary widely from financial institution to financial institution, so it's important to make sure you're getting the best rate possible when purchasing a CD. Here's a breakdown of today's CD rates and where to find the best offers.

Historically, long-term CDs have had higher interest rates than short-term CDs. Generally speaking, this is because banks pay higher interest rates to encourage savers to keep their money for longer. In today's economy, however, the opposite is true.

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Today, NexBank offers a top CD rate of 4.27% APY for a 1-year CD term. However, the minimum opening deposit is $25,000.

The second-highest rate is 4.25% APY, offered by Marcus at Goldman Sachs on its 1-year CD. The minimum deposit is $500.

Here are some of the best CD rates currently available from our verified partners:

The amount of interest you can earn on a CD depends on the annual percentage rate (APY). This is a measure of total income after one year when taking into account the base interest rate and the frequency of compounding (CD interest is typically compounded daily or monthly).

Let's say you invest $1,000 in a one-year CD with an annual interest rate of 1.81%, compounded monthly. By the end of that year, your balance will have grown to $1,018.25 - your initial deposit of $1,000, plus $18.25 in interest.

Now let's say you choose a one-year CD that offers 4% APY. In this case, your balance would grow to $1,040.74 over the same period, including $40.74 in interest.

The more money you put into a CD, the more money you earn. If we take the example of a one-year CD with an annual interest rate of 4%, but deposit $10,000, your total balance at maturity of the CD will be $10,407.42, which means you will have earned $407.42 in interest. ​​

Read more: What is a good CD rate?

When choosing a CD, interest rate is usually the first factor to consider. However, rate isn’t the only factor you should consider. There are several types of CDs that offer different benefits, but you may need to accept a slightly lower interest rate in exchange for more flexibility. Here are some common CD types you can consider in addition to traditional CDs:

• Bump CD: If your bank's interest rate increases during the life of the account, this type of CD allows you to request a higher interest rate. However, you are generally only allowed to "increase" your rate once.

• No penalty CD: Also known as a liquid term deposit, this type of term deposit gives you the option to withdraw your funds before maturity without penalty.

• Jumbo CD: These CDs require higher minimum deposits (usually $100,000 or more) and often offer higher interest rates in return. However, in today's CD speed environment, the difference between traditional CD speeds and jumbo CD speeds may not be significant.

• Broker CD: As the name suggests, these CDs are purchased through a brokerage firm rather than directly from a bank. Brokered CDs can sometimes offer higher interest rates or more flexible terms, but they also carry greater risk and may not be FDIC insured.