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CD rates are near historic highs right now. You can lock in rates above 4.50% APY for one year or more. When the Federal Reserve cuts rates, these high CD rates may disappear. Now is a good time to lock them in.
Here are the best CD rates of 2026.
Best 1-Year CD Rates 2026
| Bank | APY | Minimum Deposit |
|---|---|---|
| Marcus by Goldman Sachs | 4.90% | $500 |
| Ally Bank High-Yield CD | 4.80% | None |
| Discover CD | 4.70% | $2,500 |
| CIT Bank Term CD | 4.65% | $1,000 |
| Barclays Online CD | 4.60% | None |
Best 2-Year CD Rates 2026
| Bank | APY | Minimum Deposit |
|---|---|---|
| Marcus by Goldman Sachs | 4.50% | $500 |
| Ally Bank | 4.25% | None |
| Discover | 4.20% | $2,500 |
| Synchrony Bank | 4.15% | None |
Best 5-Year CD Rates 2026
| Bank | APY | Minimum Deposit |
|---|---|---|
| Ally Bank | 4.00% | None |
| Marcus | 3.90% | $500 |
| Discover | 3.85% | $2,500 |
Rates as of May 2026. Rates change frequently. Check with each institution for current APY before opening an account.
What Is a CD?
A CD (certificate of deposit) is a type of savings account. You agree to leave your money in the account for a set period of time — called the term. In return, the bank pays you a fixed interest rate. Terms usually range from 3 months to 5 years.
Early Withdrawal Penalties
If you take your money out before the CD matures, you pay a penalty. The penalty is usually several months of interest. For example, Ally charges 60 days of interest on 1-year CDs. Read the terms before you open a CD.
If you might need the money early, look at Ally’s No-Penalty CD. You can withdraw after 6 days with no fee. The rate is a little lower, but the flexibility is worth it for some people.
CD Laddering Strategy
A CD ladder is a smart strategy. Instead of putting all your money into one CD, you split it across multiple terms. For example:
- $2,000 in a 1-year CD
- $2,000 in a 2-year CD
- $2,000 in a 3-year CD
Each year, one CD matures. You get access to some cash while the rest keeps earning. When the 1-year CD matures, you reinvest in a new 3-year CD. This way, you always have one CD maturing soon in case you need money.
CDs vs High-Yield Savings Accounts
CDs pay a locked-in rate. HYSA rates float with the market. Right now, top CD rates are similar to top HYSA rates. But if the Fed cuts rates, HYSA rates will drop. Your CD rate stays the same. This makes CDs a safer bet if you think rates will fall.
See our full breakdown in CD vs High-Yield Savings Account. Also check our picks for best high-yield savings accounts and best money market accounts.
Frequently Asked Questions
What is the best CD rate available in 2026?
The top 1-year CD rates are around 4.90% APY from banks like Marcus by Goldman Sachs. Rates vary by term.
What happens when my CD matures?
When a CD matures, you can withdraw your money, reinvest in a new CD, or transfer to savings. Most banks give you a short grace period to decide.
Are CD rates going up or down in 2026?
Rates have stabilized after the Fed’s hike cycle. If the Fed cuts rates, CD rates will likely drop. Locking in now protects you.
What is the minimum to open a CD?
It depends on the bank. Ally and Barclays have no minimum. Marcus requires $500. Discover requires $2,500.
Can I open multiple CDs at different banks?
Yes. Each bank gives you up to $250,000 in FDIC coverage. Spreading CDs across banks can increase your total coverage.