Few questions about investing in CD?

Question

How does APY work exactly? Does that rate only apply if I reinvest the interest I earned?

I heard of the ladder method, is this with one company or 1 CD in several companies?

Where can I find highest rates daily?

Are there any other investments like CD that have no risk and guaranteed money?

Answer 1

You need not reinvest your interest.  The Annual Percentage Yield is the rate that would be earned over the course of 1 calendar year.  

Laddering consists of buying multiple CDs (same bank, or otherwise) with different maturity dates to help mitigate interest rate risk (the risk you assume if interest rates rise or fall).

Plenty of resources online.  I would recommend capsecurities.com.

These days, I would be careful saying that even CDs have "no" risk.  But that's your safer bet.