Yes, I am told, though I have not researched this, that the whole point of reporting an APY or annual percentage yield is to tell the consumer what the equivalent simple interest calculation is, so he or she can quickly figure out, how much would be earned on an annual basis, without necessarily having to read the fine print.
www.bankrate.com
publishes the highest CD and money market rates nationwide. I think best is 3.80%. And you can easily get 4% and change in one-year CDs. If you are willing to open an account by internet or mail with a bank in some other major city, half-way across the country.
Everyone should bookmark
www.bankrate.com as it is an easy source for CD rates of all durations. I saw it mentioned in a WSJ article.