Best CD Rates 2026

Certificates of deposit remain one of the most reliable tools for guaranteed returns in a fluctuating interest rate environment. By locking in a fixed rate for a set term, CD investors know exactly how much their money will earn from day one. In 2026, the best CD rates are competitive with high-yield savings accounts, with top 1-year CDs paying between 4.00% and 4.10% APY. This makes CDs an attractive option for money you do not need immediate access to but want to earn a predictable return.

The CD market offers terms ranging from 3 months to 10 years, with rates typically increasing as the term lengthens — though this relationship can invert depending on the economic outlook. The national average for a 1-year CD is 1.55% APY, so shopping for the best CD rates can more than double your earnings compared to going with a big bank. FDIC insurance applies to CDs just like savings accounts, protecting up to $250,000 per depositor per institution.

Best 1-Year CD: CIT Bank

CIT Bank offers the most competitive 1-year CD rate on the market at 4.10% APY with a $1,000 minimum deposit. This term hits the sweet spot for most savers — long enough to earn a premium rate but short enough to maintain reasonable liquidity. CIT Bank's online application process is straightforward, and you can manage your CD entirely through their digital platform. The 1-year term is ideal for savers with a known expense 12 months away, such as a vacation, tax payment, or home improvement project.

Best 6-Month CD: Marcus by Goldman Sachs

Marcus by Goldman Sachs offers a 6-month CD at 4.00% APY with a $500 minimum deposit. This short-term option works well for savers who want a competitive rate but do not want to commit their money for a full year. Marcus also offers automatic renewal options and a 10-day grace period at maturity to decide whether to withdraw or roll over. The combination of a trusted brand, competitive rate, and low minimum makes Marcus's 6-month CD a strong choice for short-term savings goals.

Best No-Penalty CD: Ally Bank

Ally Bank's No-Penalty CD offers 3.80% APY with the unique ability to withdraw your entire deposit after the first 6 days without paying any early withdrawal penalty. This product gives you the flexibility to access your money if your plans change or if you find a better rate elsewhere. With a $0 minimum deposit to open, Ally's No-Penalty CD is one of the most flexible products in the CD market. It is an ideal choice for savers who want a guaranteed rate but are uncertain about their liquidity needs.

Best Jumbo CD: Bread Savings

Bread Savings offers a jumbo CD at 4.05% APY with a $10,000 minimum deposit. Jumbo CDs require larger deposits in exchange for higher rates than standard CDs. Bread Savings's jumbo CD is competitive across all terms, and their online platform makes managing your large deposit straightforward. For investors with $10,000 or more to set aside, the jumbo CD premium can add several hundred dollars in additional interest over the term compared to a standard CD.

Best 5-Year CD: Vio Bank

Vio Bank's 5-year CD pays 3.75% APY with a $500 minimum deposit. Longer-term CDs like this one provide rate certainty over a multi-year horizon, protecting you against falling interest rates. While the 3.75% rate is lower than shorter-term options — reflecting market expectations that rates may decline — it guarantees that return for five full years regardless of what happens in the broader economy. The 5-year CD works well for savers building toward a longer-term goal like a child's education or a future down payment.

CD Term Comparison

CD Ladder Strategy

A CD ladder is a strategy that splits your money across multiple CDs with different maturity dates. For example, you divide $25,000 evenly across 1-year, 2-year, 3-year, 4-year, and 5-year CDs. When each CD matures, you reinvest it into a new 5-year CD. The result is that you always have a CD maturing within 12 months — giving you liquidity — while earning the higher rates associated with longer-term CDs. CD laddering balances the tradeoff between rate and access, and it protects you from reinvesting everything when rates are low.

Early Withdrawal Penalties

CDs charge early withdrawal penalties if you need to access your money before the term ends. Typical penalties range from 3 to 12 months of interest, depending on the CD term. A 1-year CD might have a 3-month penalty, while a 5-year CD could charge 6 to 12 months of interest. Before opening a CD, calculate the break-even point — if you think you might need the money before the term ends, the penalty could wipe out your interest earnings. Always keep your emergency fund in a high-yield savings account, not a CD.

CD vs HYSA

The choice between a CD and a high-yield savings account depends on your timeline and need for liquidity. A HYSA is the right choice for emergency funds, money you might need in the next few months, or savings goals where you plan to make regular contributions. A CD is better for known future expenses on a fixed timeline, such as a wedding in 18 months, a tax payment due next year, or money you want to protect from the temptation of spending. In a falling rate environment, locking in a CD rate can be particularly advantageous because your rate stays the same even as savings account rates decline.

Rate Outlook

Federal Reserve interest rate decisions directly impact CD rates. If the Fed cuts rates in response to cooling inflation, CD rates will follow. The current inverted yield curve — where short-term CDs pay more than long-term ones — suggests the market expects rates to fall in the coming years. Savers who lock in a 1-year CD at 4.00-4.10% APY today may find those rates unavailable a year from now. Acting sooner rather than later can help you capture today's best CD rates before they potentially decline.