Best CD Rates (2026): Where to Lock In Yield

A certificate of deposit pays a fixed rate for a fixed term. You agree to leave the money alone, and the bank agrees not to change your rate. If you're sure you won't need the money until a set date, a CD is the simplest way to lock in what rates are paying today.

Rates checked September 23, 2026. CD rates change often, so confirm the APY on the bank's site before you open one.

Top CD rates by term

All of these are FDIC-insured up to $250,000 per depositor, per bank.

How that compares: the national average one-year CD pays about 2% APY. A top online CD pays more than twice that.

What's unusual right now

At the moment, rates for short and long terms are nearly the same. A 1-year CD pays about as much as a 3- or 5-year one. Usually you'd expect a longer term to pay noticeably more, because you're giving up access for longer.

When the gap is this small, shorter terms tend to be the safer choice. You keep your options open without giving up much yield.

Early withdrawal penalties

If you take money out before the CD matures, you pay a penalty, usually a set number of months of interest:

• Terms of 1 year or less: often 3 months of interest
• 1–3 years: often 6 months
• Over 3 years: often 12 months

Always check the penalty before opening. It matters more than a 0.05% difference in APY.

Other kinds of CD

No-penalty CD. You can withdraw the whole balance after a short waiting period, often seven days, without a penalty. The rate is usually a little lower.

Bump-up CD. You can raise your rate once or twice during the term if the bank's rate for new CDs goes up.

Jumbo CD. It needs a larger deposit, often $100,000. The rate is sometimes higher, and often it isn't.

Brokered CD. You buy it through a brokerage account. You can sell it before maturity rather than paying a penalty, but its price can fall if rates rise.

CD or high-yield savings?

Choose a CD when you know when you'll need the money, such as a house deposit next summer or tuition in 18 months, and you want the rate guaranteed.

Choose a high-yield savings account for your emergency fund, or for money you might need at short notice. The top HYSA rates are close to CD rates right now, and you can withdraw at any time. HYSA vs CD goes through the choice in more detail.

Consider Treasury bills if you pay high state income tax. T-bill interest is exempt from state tax, and CD interest isn't. See HYSA vs Treasury bills.

Building a CD ladder

A ladder splits your money across several terms so that one CD matures every few months. For example, you could put $10,000 into four CDs of $2,500 each, maturing in 6, 12, 18 and 24 months.

Each time one matures, you either use the money or roll it into a new 24-month CD. You get CD rates while still having money come free regularly. That makes a ladder a reasonable home for the second tier of an emergency fund.

How CD interest is taxed

CD interest is taxed as ordinary income in the year it is credited, even if you can't withdraw it yet. Your bank sends a 1099-INT for any year you earn $10 or more. See tax on savings interest.

FAQ

What happens when my CD matures? Most banks give you a grace period, often 7 to 10 days, to withdraw or change the term. If you do nothing, the CD usually renews at the bank's current rate for the same term, which may be lower.

Can I add money to a CD? Usually not. Most CDs take a single deposit when you open them. Some banks offer "add-on" CDs that allow more deposits.

Are credit union CDs safe? Yes. Credit union certificates are insured by the NCUA up to $250,000, just as bank CDs are insured by the FDIC.