Advertiser Disclosure

Earn More on Your Savings – Compare 2026’s Best CD Rates 

To recap our recommendations.

Best Certificate of Deposits According To CompareAccounts™

Customers Also Viewed These High Yield Savings Accounts

Best For: Exclusive Promo Rate & Welcome Bonus

Best For: Bonus Seekers + Large Deposits

Additional CDs to Consider

To recap our recommendations.

Best Certificate of Deposits According To CompareAccounts™

Best CD Rates

The best CD rates reach highly competitive APYs — a compelling return for savers who want a guaranteed, FDIC-insured yield without market risk. While the Federal Reserve’s historical rate shifts have pushed certificate of deposit (CD) APYs up and down over the years, top online banks and credit unions consistently offer rates well above the national average. Therefore, if you are looking to lock in a strong return before macroeconomic conditions change, taking action during high-rate environments is a favorable strategy.

This guide covers everything you need to know about the CD rate environment: where rates stand by term length, how CDs compare to high-yield savings accounts, what the Fed’s rate outlook means for your savings, and how to choose the right CD for your financial goals. For instance, you can use the CompareAccounts CD rates hub to compare live offers side by side, or jump to our CD interest calculator to estimate your exact earnings before you commit.

What Are CD Rates Right Now?

Currently, the top CD rates at leading online banks and credit unions represent a massive premium over the national average. Consequently, keeping your funds in a standard savings account at a traditional branch means missing out on substantial, risk-free returns. Because online banks carry lower overhead than physical branches, they pass those savings directly to depositors in the form of higher APYs.

Here is a general snapshot of how competitive CD rates behave across key term lengths:

• 6-Month CDs: Typically offer the highest APYs in the market when the yield curve is inverted, making them perfect for short-term parking of cash.
• 1-Year CDs: Provide an excellent balance of high yield and medium-term liquidity.
• 2-Year to 5-Year CDs: Generally offer slightly lower APYs than short-term CDs in high-rate environments, but they provide critical long-term rate protection against future Federal Reserve cuts.

When comparing offers, always look at the APY — not the nominal interest rate — since APY reflects the true annual return after compounding. Use the full CD rates comparison page to see today’s best live offers ranked by APY.

What Are the Best Short-Term CD Rates (3–6 Months)?

Short-term CDs — those with terms of 3 to 6 months — frequently offer some of the most competitive rates available. As a result, these products are ideal for savers who want a higher guaranteed return than a basic savings account provides but need access to their funds relatively soon.

The trade-off, however, is that your funds are locked in for the duration. Early withdrawal penalties — typically equal to 90 days of interest on short-term CDs — will apply if you need to access funds ahead of schedule. Therefore, short-term CDs make the most strategic sense in two situations: when you need the money within six months (for a planned purchase, for example), or when you believe interest rates will rise in the near future.

For a full comparison of 3-month, 6-month, and other short-duration options, see our best short-term CD rates page.

What Are the Best 1-Year CD Rates?

The 1-year CD is one of the most popular savings products in America. The gap between top online institutions and the national average makes it well worth your time to shop beyond your local branch. Moreover, the 1-year term offers a compelling balance of rate, accessibility, and commitment.

You earn a fixed, guaranteed return without tying your money up for multiple years. If rates fall further, a 1-year CD protects your return for the full term. On the other hand, if rates rise, you are free to reinvest at maturity in just twelve months. Key things to confirm before opening a 1-year CD include the minimum deposit requirement, the exact early withdrawal penalty, and the bank’s auto-renewal terms.

For a ranked list of the top 1-year CD offers available today, visit our dedicated best 1-year CD rates page.

What Are the Best 2-Year CD Rates?

A 2-year CD occupies a strategic middle ground. It locks in a competitive rate for long enough to provide meaningful protection against future rate cuts, without committing funds for the extensive duration required by 5-year products. Consequently, this makes the 2-year CD particularly appealing in environments where central banks are pausing or gradually cutting benchmark rates.

The main consideration with a 2-year CD is the early withdrawal penalty, which is typically higher than for shorter-term products. Ensure the funds you are depositing are genuinely not needed for the full term. If you are unsure about your liquidity needs, consider splitting your deposit between a 1-year CD and a high-yield savings account to preserve flexibility.

What Are the Best 5-Year CD Rates for Long-Term Savers?

Five-year CDs from top online institutions offer historically strong returns for the longest standard CD term. The case for a 5-year CD is largely about sustained rate protection. If the Federal Reserve is in a rate-cutting cycle, a 5-year CD opened today could significantly outperform whatever shorter-term CDs will be offering in the coming years.

However, a 5-year commitment demands careful consideration. Early withdrawal penalties on long-term CDs can be steep — commonly 12 months of interest — which can eliminate a meaningful portion of your earnings. Rather than putting all your savings into a single 5-year CD, you might use a CD laddering strategy to spread deposits across multiple terms. Additionally, if you are considering very large deposits, explore jumbo CD rates, which sometimes offer premium APYs.

What Does the Fed Rate Outlook Mean for CD Savers?

The Federal Reserve’s rate decisions are the single biggest driver of CD rates. Therefore, when the Fed signals future rate cuts, the path forward points lower for deposit accounts. Every rate cut the Fed makes will likely be followed by a corresponding reduction in the APYs that banks offer on new CDs.

A CD opened today maintains its initial rate for the full term, even if the Fed slashes rates significantly. By contrast, funds left in a variable high-yield savings account will see their rate decrease as the Fed acts. This dynamic is precisely why financial advisors often recommend opening longer-term CDs when rates are expected to fall.

CD Rates vs. High-Yield Savings Accounts: Which Is Better?

Both CDs and high-yield savings accounts (HYSAs) are safe, FDIC-insured products that offer far better returns than traditional savings accounts. Choosing between them depends primarily on your time horizon and your need for liquidity.

Where CDs win: CDs typically offer higher APYs than HYSAs, and they lock in that rate for the full term. In a falling-rate environment, this is a significant advantage. For funds you won’t need for a defined period, a CD almost always delivers more predictable total returns.

Where HYSAs win: A high-yield savings account gives you full liquidity. You can withdraw funds at any time without penalty. As a result, HYSAs are the right choice for emergency funds, short-term savings goals, or money you might need on short notice.

The most effective strategy for most savers combines both products: keep 3–6 months of living expenses in a high-yield savings account for emergencies, then move surplus savings into a CD to lock in a higher guaranteed rate.

How Do You Choose the Right CD?

Choosing the right CD comes down to a few key decisions. Work through each one before opening an account to dramatically improve your financial outcome.

1. Match the term to your time horizon

This is the most important decision. Only lock money into a CD that you genuinely won’t need until the CD matures. Never choose a CD term based solely on the highest available rate — selecting the wrong term and then withdrawing early can trigger fees that eliminate your interest earnings.

2. Compare APY, not just the interest rate

Always compare the annual percentage yield (APY) rather than the stated interest rate. APY accounts for compounding frequency, meaning a CD that compounds daily will yield slightly more than one that compounds monthly. It is the only accurate basis for comparison across different institutions.

3. Understand the early withdrawal penalty

Every traditional CD charges a penalty if you withdraw funds before the maturity date. Always read the penalty terms before opening a CD, and consider whether a no-penalty CD makes more sense if you’re uncertain about your liquidity needs.

4. Confirm FDIC or NCUA insurance

Only open CDs at institutions that are federally insured. FDIC and NCUA insurance protect your deposits up to $250,000 per depositor per institution. If your deposits exceed this threshold, simply spread your funds across multiple insured institutions.

What Types of CDs Are Available?

Not all CDs are structured the same way. Beyond standard fixed-rate CDs, several specialized CD types offer additional flexibility. The right type depends on how much certainty you want about your rate and your access to funds.

• Standard (Fixed-Rate) CDs: You deposit a lump sum, agree to a fixed term, and earn a guaranteed APY for the full duration. These offer the highest rates and are the right choice for most savers.
• No-Penalty CDs: Allow you to withdraw your full balance before the maturity date without incurring a penalty. They generally offer slightly lower APYs, but the trade-off is valuable if you need an escape hatch.
• Bump-Up (Step-Up) CDs: Allow you to request a rate increase once or twice during the term if the bank raises its published rates.
• Add-On CDs: Allow you to make additional deposits after the initial opening, similar to a savings account but with a fixed rate.
• Jumbo CDs: Require a high minimum deposit — typically $100,000 — in exchange for a slightly higher APY.

How Do You Open a CD? A Step-by-Step Guide

Opening a CD is a straightforward process that typically takes less than 15 minutes online. Firstly, use a comparison tool to identify the best APY for your chosen term. Secondly, verify that your chosen institution is FDIC or NCUA insured.

Once selected, gather your information (Social Security number, government-issued ID, existing bank account details) and complete the online application. Finally, fund the CD by linking your existing bank account and initiating an ACH transfer. Transfers usually settle in a few business days, at which point your CD begins earning interest.

Frequently Asked Questions About CD Rates

What is a good CD rate right now?

A good CD rate is any yield that significantly beats the national average, which is typically found at online-only banks and credit unions. Top-tier institutions consistently offer APYs that are a multiple of what traditional brick-and-mortar branches provide. For the most competitive yields, look closely at 6-month and 1-year terms, as these often feature the highest rates available.

Because online banks do not have the overhead costs associated with physical locations, they can pass the savings on to you. Always utilize rate comparison tools to ensure the APY you lock in remains highly competitive against the broader market.

Are CD rates going up or down?

CD rates are heavily influenced by the Federal Reserve’s benchmark interest rate. Consequently, when the Fed cuts rates or signals a transition to a lower-rate environment, banks follow suit and gradually reduce the APYs they offer on new CDs.

If economic indicators suggest future rate cuts are on the horizon, locking into a long-term CD as soon as possible is a strategic way to shield your savings from future rate depreciation.

Is it worth putting money in a CD?

Yes, placing money in a CD makes strong financial sense if you have surplus cash that you won’t need to access for a defined period. A CD locks in a guaranteed rate, protecting your returns against market volatility and potential future rate cuts.

However, the key qualifier is liquidity. You should only deposit funds you are genuinely confident you will not need before the CD matures, as early withdrawal penalties can offset a significant portion of your earned interest.

What happens to my CD if the bank fails?

Your CD is protected by FDIC insurance (for banks) or NCUA insurance (for credit unions) up to $250,000 per depositor, per institution, per account ownership category. In the highly unlikely event that your bank fails, the federal government guarantees you will receive your full principal plus accrued interest up to the insurance limit.

This strict federal backing makes CDs one of the safest savings instruments available. Before opening any account, simply verify the institution’s insurance status at fdic.gov or ncua.gov.

Editorial Note: Rate data and macroeconomic trends referenced in this article are based on broader institutional market surveys. CD rates can change daily. Always verify the current APY and early withdrawal penalties directly with the institution before opening an account.