What Are CD Rates?
A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period. In exchange, the bank pays you a guaranteed interest rate. When the term ends, you get your principal back plus the interest you earned.
CD rates have climbed significantly over the past two years as the Federal Reserve raised its benchmark rate. In 2026, many online banks and credit unions are still offering rates well above the national average.
Best CD Rates in 2026
Here are the top CD rates available right now from FDIC-insured banks and NCUA-insured credit unions.
1. Marcus by Goldman Sachs — Up to 5.20% APY
Marcus offers a no-penalty CD and standard CDs from 6 months to 6 years. There is no minimum deposit, and interest compounds daily. The 12-month CD currently yields among the highest rates from a major online bank.
2. Ally Bank — Up to 5.15% APY
Ally’s High Yield CD requires no minimum deposit. They also offer a Raise Your Rate CD that lets you bump up to a higher rate once (2-year) or twice (4-year) during the term if Ally’s rate increases.
3. Discover Bank — Up to 5.10% APY
Discover offers CDs from 3 months to 10 years with a $2,500 minimum deposit. Their rates are competitive, and the brand is widely recognized and trusted.
4. Synchrony Bank — Up to 5.25% APY
Synchrony consistently ranks near the top for CD rates. Their 14-month CD is a standout product, offering a higher yield than most standard 12-month options with a $0 minimum.
5. LendingClub Bank — Up to 5.20% APY
LendingClub Bank is an online-only institution that offers competitive CD rates with terms from 6 months to 5 years. Their 12-month CD is one of the better options on the market in 2026.
6. Barclays Online — Up to 5.00% APY
Barclays offers straightforward CDs with no minimum deposit. Their online-only model keeps overhead low, which translates to better rates for savers.
How to Compare CD Rates
Not all CDs are created equal. Here is what to look at before you open one.
APY vs. Interest Rate
Always compare APY (annual percentage yield), not the stated interest rate. APY accounts for compounding and gives you the true annual return.
CD Term Length
Shorter terms give you more flexibility but may offer lower rates. Longer terms lock in a rate, which is valuable if you believe rates will fall. In 2026, the rate curve has flattened, so short-term CDs are nearly as attractive as long-term ones for most savers.
Early Withdrawal Penalties
Most CDs charge a penalty if you pull money out before the term ends. Common penalties range from 60 days of interest (short terms) to 150 days or more (long terms). Check this before you commit.
No-Penalty CDs
Some banks offer no-penalty CDs that let you withdraw your full balance after a short waiting period (usually 7 days) without any fee. The trade-off is a slightly lower rate, but the flexibility can be worth it if you think you may need the funds.
How CD Rates Are Set
Banks set CD rates based on the federal funds rate, their own funding needs, and competition from other banks. When the Fed raises rates, CD rates tend to follow. When the Fed cuts rates, CD rates usually drop within weeks.
The Federal Reserve began cutting rates in late 2024, so rates have moderated from their 2023 peaks. That said, online banks are still offering historically strong returns compared to the near-zero rates of 2020 and 2021.
Are CDs FDIC Insured?
Yes. CDs at FDIC-insured banks are insured up to $250,000 per depositor, per institution, per account ownership category. CDs at NCUA-insured credit unions carry the same protection. This makes CDs one of the safest savings vehicles available.
CD Rates vs. High-Yield Savings Accounts
High-yield savings accounts (HYSAs) are more flexible than CDs because you can add or withdraw money at any time. However, HYSA rates are variable and can drop at any time. CD rates are fixed for the full term, so they protect you from rate cuts.
If you have money you will not need for 6 to 24 months, a CD often makes more sense than a HYSA in a falling-rate environment.
How to Open a CD
Opening a CD takes about 10 minutes online. You will need:
- A government-issued ID
- Your Social Security number
- A linked bank account to fund the CD
Most online banks transfer your initial deposit within 1 to 3 business days. Once funded, the CD is open and your rate is locked.
When a CD Makes Sense
CDs work best when you have a lump sum of cash you will not need for a defined period. Good use cases include:
- Parking your emergency fund’s overflow (beyond 3-6 months of expenses)
- Saving for a specific purchase 12-24 months away (vacation, car, home down payment)
- Building a CD ladder to earn higher rates while keeping some liquidity
Bottom Line
The best CD rates in 2026 are still well above the national average of roughly 1.8% at traditional banks. If you have cash sitting in a big bank savings account earning next to nothing, moving it to a CD at an online bank could meaningfully increase your return with zero added risk.
Compare APYs, check the early withdrawal penalty, and match the term length to when you actually need the money. That is all it takes to get started.