Best CD Rates of 2026: Compare Top Certificates of Deposit

What is a CD (certificate of deposit)?

A certificate of deposit (CD) is a type of savings account offered by banks and credit unions that locks your money in for a set period — called the term length or maturity date — in exchange for a guaranteed, fixed interest rate. Terms typically range from 3 months to 5 years.

The key difference from a regular savings or high-yield savings account: the interest rate on a CD is fixed. Whatever annual percentage yield (APY) you lock in on day one is what you earn for the entire term, regardless of what the Federal Reserve does or where the market moves. That's the appeal — rate certainty. The trade-off: you pay an early withdrawal penalty if you need to access your money before the maturity date.

CDs are offered by virtually every bank and credit union. They are FDIC insured (or NCUA insured at credit unions) up to $250,000 per depositor, per institution — making them one of the safest places to put money. There is no credit risk, no market risk, and no possibility of losing principal at a federally insured institution.

APY vs. interest rate — what's the difference?

Banks advertise CDs using APY (Annual Percentage Yield), which accounts for compounding — the effect of interest being added to your balance and then earning additional interest on itself. The nominal interest rate is the base rate before compounding is factored in. For most CDs, APY and the nominal rate are very close, but APY is always the accurate number to compare.

Example: A CD with a 4.70% nominal interest rate compounding daily has an APY slightly above 4.70% because each day's interest earns a tiny amount of additional interest. Always compare APYs — not the plain interest rate — when shopping for the best CD rates across banks.

One more thing to know: CD interest is typically credited at maturity (for shorter terms) or periodically (monthly or annually for longer terms). Interest is taxable as ordinary income in the year it's credited, regardless of whether you withdraw it. Keep this in mind for tax planning if you're moving large sums into CDs.

Best CD rates right now — by term length

All rates approximate as of June 2026. Verify current rates directly with each bank before opening. Rates change frequently.

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Best overall: Marcus 9-Month No-Penalty CD

The Marcus No-Penalty CD from Goldman Sachs is our top overall pick because it solves the biggest objection to opening a CD: "What if I need the money?" With the Marcus no-penalty CD, you can withdraw your full balance without penalty after a 7-day waiting period. You get the fixed rate certainty of a bank certificate combined with the flexibility of a high-yield savings account.

The approximately 4.50% APY is slightly lower than Synchrony's 6-month rate, but for most savers, the peace of mind of not facing an early withdrawal penalty is worth that trade-off. Minimum deposit is $500, and Marcus is backed by Goldman Sachs — one of the most well-known financial institutions in the world. FDIC insured up to $250,000.

Best short-term CD (6-month): Synchrony Bank

For the highest raw deposit rate on a short-term CD, Synchrony Bank's 6-month CD at approximately 5.15% APY leads the pack. Synchrony requires no minimum deposit, which means you can open with any amount. The early withdrawal penalty is 90 days of interest — if you had to break it on day 45, you'd receive the principal but forfeit roughly half the interest earned.

Synchrony Bank is an FDIC-insured online financial institution with a strong track record in high-yield savings and CD products. It doesn't offer a checking account or debit card, so it functions purely as a savings and CD platform. Transfers in and out go through your linked bank account and typically take 1–3 business days. Verify the current APY on Synchrony's website before opening.

Best long-term CD (5-year): Marcus by Goldman Sachs

The Marcus 5-Year CD at approximately 4.10% APY is our pick for locking in a long-term guaranteed interest rate. Five years is a significant commitment, and the early withdrawal penalty (270 days of interest) is meaningful — make sure you genuinely won't need the money before the maturity date. The case for a 5-year CD: if economists and the Fed signal multiple rate cuts over the next few years, locking in 4%+ today means you earn that rate even when new CDs are offering 2.5%.

The minimum deposit is $500. Interest is credited monthly, so you can watch your balance grow over the term. As with all Marcus products, the account is managed entirely online with no branch access — straightforward and effective for pure deposit growth.

Best CD rates by bank — quick reference

How CD rates are set — and why they're elevated right now

CD rates are closely tied to the federal funds rate — the interest rate target set by the Federal Reserve at its regular FOMC meetings. When the Fed raises the federal funds rate, banks can earn more on their reserves and pass higher yields to depositors through savings accounts and certificates of deposit.

The Fed raised rates aggressively from 2022–2023 to combat high inflation, pushing the federal funds rate to its highest level in over 15 years. CD rates followed, reaching 5%+ for the first time since before the 2008 financial crisis. As inflation has moderated, the Fed has begun adjusting its rate posture — which means today's CD rates may represent the peak of this rate cycle for the near to medium term.

Is now a good time to open a CD?

For most savers with money they know they won't need for 6–24 months, yes — the current deposit rate environment is meaningfully favorable. CD rates are well above the national average savings rate at traditional banks, and the fixed-rate nature of CDs means you lock in today's yield regardless of future Fed decisions.

The main consideration: if rates rise significantly after you open your CD, you'll be stuck earning the lower rate until your maturity date (at which point you can roll into a higher-rate CD). If you're concerned about this, consider: (a) a shorter-term CD (6 months or 1 year) so you can reinvest sooner, (b) a "Raise Your Rate" CD from Ally that allows one rate bump during the term, or (c) a CD ladder strategy that gives you periodic reinvestment opportunities.

If rates fall — which is the more common near-term expectation as of mid-2026 — locking in today's rates is clearly the better move. The risk is asymmetric: the downside of being locked in at 4.80% when rates fall to 3% is that you can't reinvest at the even higher rate. The upside of locking in now vs. waiting is that you capture 4.80% instead of 3%.

Early withdrawal penalties — what they actually cost you

Every standard CD charges an early withdrawal penalty for accessing your money before the maturity date. The penalty is measured in days of interest and varies by bank and term length:

If you're even slightly unsure whether you'll need the money during the term, consider a no-penalty CD or keep funds in a high-yield savings account instead. Dollar figures above are approximate; exact penalties depend on each bank's policy and the current interest rate.

CD laddering: how to lock in high rates without getting stuck

A CD ladder is a strategy where you split your savings across multiple CDs with different maturity dates — giving you regular access to maturing funds while still capturing higher rates on longer-term certificates. Instead of putting $20,000 into one 5-year CD and waiting five years, a simple ladder looks like this:

• $5,000 in a 1-year CD at ~4.80%
• $5,000 in a 2-year CD at ~4.20%
• $5,000 in a 3-year CD at ~4.10%
• $5,000 in a 5-year CD at ~4.10%

Every year, one CD matures. You can spend that money if needed or reinvest it into a new CD at whatever rates are available at that time. The result: you always have a CD coming due within 12 months (liquidity), you capture higher rates on longer terms (yield), and you hedge against rate changes in both directions (flexibility). For anyone with a meaningful chunk of savings they don't need immediately, a CD ladder is one of the smartest strategies available.

Use our compound interest calculator to model how a CD ladder would grow over time at different rates.

Types of CDs you should know about

CDs vs. high-yield savings accounts — which is right for you?

Both CDs and high-yield savings accounts are FDIC-insured, low-risk places to grow your savings. The choice comes down to two factors: liquidity and rate certainty.

• Choose a HYSA if:
  • You might need the money within 6 months
  • You want to add money regularly (automatic monthly savings)
  • You're building an emergency fund that must stay accessible
  • You're comfortable with a variable rate that may change with the Fed
• Choose a CD if:
  • You have money you're certain you won't need for the full term
  • You want rate certainty — a fixed APY that won't change regardless of the Fed
  • You're in a falling-rate environment and want to lock in current yields
  • You're willing to accept an early withdrawal penalty in exchange for a higher guaranteed rate

Many financially savvy households use both: a high-yield savings account for their emergency fund (3–6 months of expenses, must stay liquid) and CDs for any additional savings they can commit to a fixed term. The emergency fund earns a competitive variable rate; the CD earns a locked-in fixed rate. Together, the money works efficiently without taking on any investment risk.

How to open a CD — 4 steps

1. 1Pick your term length based on when you'll need the money. If you're unsure: go with a 6-month or no-penalty CD so you maintain flexibility.
2. 2Compare current rates using the tables above. The APY difference between banks on the same term can be 0.25–0.50%+ — that's real money on a $10,000+ deposit.
3. 3Open online. Almost all online banks let you open a CD in under 10 minutes. You'll need your Social Security number, a government ID, and your current bank's routing and account number for the initial deposit.
4. 4Set a reminder for the maturity date. Most banks will automatically roll your CD into a new one if you don't act — potentially at a lower rate. Make an active decision when the term ends: spend, roll into a new CD at the best available rate, or move to a HYSA.

Frequently asked questions