Brokerage firms also sell CDs and typically look for ones with the highest rates and make them available to their clients. All expenses should be considered prior to signing up for the CD with the highest stated rate. Whereas the bank sets most CD rates, some rise with interest rates. These are called rising rate CDs. Generally, the more money deposited into the CD and the longer it stays there, the higher the rate paid.
Any interest earned is taxable.
If you see CD returns quoted for both rate and yield, remember that these are two different things. The rate is what the CD pays. The yield is what the investor receives. The yield is always higher than the rate because the rate is compounded. This means that interest is paid on the interest earned.