Certificates of deposit (CDs) offer a guaranteed return on your money in exchange for locking it up for a fixed term. In 2026, top CD rates remain competitive, making them an attractive option for savers who do not need immediate access to their funds.
What Is a Certificate of Deposit?
A CD is a deposit account that holds a fixed amount of money for a fixed period, ranging from a few months to several years. In exchange for leaving your money untouched, the bank pays you a guaranteed interest rate. Withdrawing funds before the term ends typically results in an early withdrawal penalty, usually a few months of interest.
All CDs offered by FDIC-member banks are insured up to $250,000 per depositor, per institution.
Best CD Rates in 2026
Marcus by Goldman Sachs
Marcus offers CDs in terms from 6 months to 6 years with competitive rates and a $500 minimum deposit. Their no-penalty CD option allows early withdrawal after the first 7 days without a fee, providing more flexibility than traditional CDs.
Ally Bank
Ally offers High Yield CDs, Raise Your Rate CDs, and No Penalty CDs. The High Yield CD has no minimum deposit and competitive rates across all terms. The Raise Your Rate CD allows you to request a rate increase once during a 2-year term or twice during a 4-year term if Ally’s rates rise.
Discover Bank
Discover offers CDs with terms from 3 months to 10 years and a $2,500 minimum deposit. Their rates are consistently competitive, and the bank is known for strong customer service and a user-friendly online platform.
Synchrony Bank
Synchrony offers CDs with terms from 3 months to 5 years and no minimum deposit. Their rates frequently rank among the highest available for short-term CDs, making them a strong choice for 3- to 12-month terms.
Bask Bank
Bask Bank frequently offers top-of-market CD rates, particularly for 6-month and 1-year terms. The bank has no minimum deposit requirement and is FDIC-insured through Texas Capital Bank.
CD Laddering Strategy
A CD ladder is a strategy where you spread money across CDs with different maturity dates. For example, instead of putting $20,000 into a single 5-year CD, you might put $4,000 each into 1-year, 2-year, 3-year, 4-year, and 5-year CDs. As each CD matures, you reinvest into a new 5-year CD. This provides regular access to a portion of your funds while still capturing longer-term rates.
Short-Term vs. Long-Term CDs
In a normal rate environment, longer-term CDs offer higher rates as a premium for committing money for more time. In recent years, however, the yield curve has been flat or inverted, meaning short-term CDs sometimes pay rates equal to or higher than longer-term CDs. In 2026, compare rates across multiple terms before committing.
When Are CDs a Better Choice Than a High-Yield Savings Account?
A CD is better than a HYSA when you want a guaranteed rate that will not change and you do not need access to the funds. HYSA rates are variable and can drop if the Federal Reserve cuts rates. A CD locks in your rate for the full term, providing certainty if you expect rates to decline.
If you need liquidity or are unsure when you may need the money, a HYSA or no-penalty CD is more appropriate.
Early Withdrawal Penalties
Before opening a CD, understand the early withdrawal penalty. Common penalties range from 60 days of interest for short-term CDs to 150–365 days of interest for longer terms. If rates rise significantly after you open a CD, it may be worth paying the penalty to break the CD and reinvest at a higher rate — run the math before deciding.
Bottom Line
The best CD rates in 2026 remain well above historical averages. Marcus, Ally, Discover, Synchrony, and Bask Bank are among the top options across different term lengths and deposit minimums. A CD ladder can help balance yield and liquidity for most savers.