Certificates of deposit (CDs) lock your money up for a fixed term in exchange for a guaranteed interest rate. In 2026, CD rates remain elevated compared to historical norms, making them an attractive option for savers who will not need their money for a set period.
Here are the best CD rates available in 2026 by term length.
Best CD Rates of 2026
Best 3-Month CD Rates
| Bank | APY | Minimum Deposit |
|---|---|---|
| Popular Direct | 4.75% | $10,000 |
| TAB Bank | 4.65% | $1,000 |
| Quontic Bank | 4.50% | $500 |
Best 6-Month CD Rates
| Bank | APY | Minimum Deposit |
|---|---|---|
| Bread Financial | 5.00% | $1,500 |
| Marcus by Goldman Sachs | 4.85% | $500 |
| Ally Bank | 4.70% | $0 |
Best 1-Year CD Rates
| Bank | APY | Minimum Deposit |
|---|---|---|
| Bread Financial | 4.85% | $1,500 |
| Sallie Mae | 4.80% | $2,500 |
| Marcus by Goldman Sachs | 4.70% | $500 |
| Discover Bank | 4.50% | $2,500 |
Best 2-Year CD Rates
| Bank | APY | Minimum Deposit |
|---|---|---|
| Ally Bank | 4.25% | $0 |
| Synchrony Bank | 4.20% | $0 |
| Barclays | 4.15% | $0 |
Best 5-Year CD Rates
| Bank | APY | Minimum Deposit |
|---|---|---|
| Marcus by Goldman Sachs | 4.00% | $500 |
| Ally Bank | 3.90% | $0 |
| Discover Bank | 3.75% | $2,500 |
How CDs Work
The Basic Mechanics
When you open a CD, you deposit a fixed amount of money for a fixed term. The bank pays you a fixed interest rate for the entire term. When the term ends (the “maturity date”), you get your principal back plus the interest earned.
If you withdraw money before the maturity date, you typically pay an early withdrawal penalty — usually 60 to 180 days of interest, depending on the bank and term length.
FDIC and NCUA Insurance
CDs at banks are insured by the FDIC up to $250,000 per depositor, per bank. CDs at credit unions are insured by the NCUA for the same amount. Your principal is protected as long as you stay within coverage limits.
Types of CDs
Standard CD
The most common type. You deposit money, lock in a rate, and collect interest at maturity. No flexibility — early withdrawal triggers a penalty.
No-Penalty CD
Allows you to withdraw your full balance without penalty after a brief holding period (typically 6–7 days). Rates are slightly lower than standard CDs, but you gain liquidity. Ally Bank offers a popular no-penalty CD.
Bump-Up CD
Lets you “bump up” to a higher rate once during the CD term if rates rise. Useful if you expect rates to increase but want some protection now.
Add-On CD
Allows you to make additional deposits during the term. Useful if you want to earn CD rates on money you are accumulating over time.
Jumbo CD
Requires a minimum deposit of $100,000 or more. May offer slightly higher rates than standard CDs.
CD Laddering: A Strategy for Flexibility
One of the risks with CDs is that your money is locked up. A CD ladder splits your savings across multiple CDs with different maturity dates, giving you periodic access to your money while still earning competitive rates.
Example of a Simple CD Ladder
You have $20,000 to invest:
- $5,000 in a 3-month CD at 4.75%
- $5,000 in a 6-month CD at 5.00%
- $5,000 in a 1-year CD at 4.85%
- $5,000 in a 2-year CD at 4.25%
As each CD matures, you reinvest into a new CD at whatever rate is available at that time. This strategy keeps some money accessible every few months while capturing favorable rates on the rest.
CD vs. High-Yield Savings Account
| Feature | CD | High-Yield Savings |
|---|---|---|
| Rate type | Fixed | Variable |
| Access to funds | Locked (penalty for early withdrawal) | Any time |
| Rate guarantee | Yes (full term) | No (can drop) |
| Best for | Known future date / goal | Emergency fund / flexible savings |
Right now, top high-yield savings accounts are offering rates very close to CDs, which makes the comparison close. The key advantage of a CD is rate certainty — you lock in today’s rate regardless of future Fed moves.
When a CD Makes Sense
- You have money you will not need for a specific period (6 months, 1 year, 2 years)
- You are saving for a defined goal with a known date (home purchase, wedding, vacation)
- You believe interest rates will fall and want to lock in today’s rates
- You want a guaranteed return with no market risk
When a CD Does Not Make Sense
- You are building an emergency fund (liquidity is paramount)
- You think rates will rise significantly (a no-penalty CD or shorter term is better)
- You have high-interest debt (paying off debt gives a better guaranteed return)
- You are investing for long-term goals more than 5–10 years away (the stock market historically outperforms CDs over long periods)
Early Withdrawal Penalties
Know the penalty before you open a CD. Common structures:
- 3-month CD: 60–90 days of interest
- 6-month CD: 90 days of interest
- 1-year CD: 150–180 days of interest
- 2-year CD: 180–240 days of interest
- 5-year CD: 150–365 days of interest
Some banks charge more than this. Ally Bank is known for relatively low early withdrawal penalties, which is one reason it remains popular for CD savers who want more flexibility.
Bottom Line
CD rates in 2026 remain attractive, especially on 6-month and 1-year terms where you can lock in rates above 4.5% to 5%. For money you will not need for a defined period, a CD provides a guaranteed return with zero market risk.
Start with the 6-month or 1-year term if you are uncertain about timing, or build a CD ladder if you want regular access to portions of your savings. Either way, make sure you are not leaving that money in a low-rate traditional bank savings account where it earns almost nothing.
Related Articles
Looking for more savings options? See our Best High-Yield Savings Accounts 2026 guide for flexible savings with competitive rates.