Best CD Rates Today

Laura Adams, MBA  |  Reviewed by Mitch Strohm  |  Updated: March 25, 2026

I’ve been tracking CD rates for years, and here’s what’s obvious: banks are all over the place with what they’re willing to pay. Some online banks are crushing it with rates you’d never find at your local branch. This page gives you the real picture—what’s happening today, not some outdated rate sheet from last month. Want a quick 6-month CD? Or locking in for five years? I’ve pulled together the rates that’ll actually move the needle on your savings.

How We Track the Best CD Rates

Our methodology for tracking CD rates combines multiple authoritative data sources to ensure accuracy and completeness. Every weekday morning, we pull the latest CD rates from the Federal Deposit Insurance Corporation (FDIC), which publishes official national rate averages. These represent what FDIC-insured banks across the country are offering, giving us a reliable baseline for comparison.

But I don’t stop there. I’m also tracking DepositAccounts.com and other data providers—the ones pulling from hundreds of banks and credit unions. When I spot a bank offering something wild, I dig in. Minimum deposits? Early withdrawal penalties? The boring stuff matters, so I check it all.

Rates shift constantly—sometimes a new player enters the market, sometimes the Fed moves, sometimes banks just decide they want more deposits. I’m watching for that stuff hours after it happens. Still, do yourself a favor: verify the rate directly on the bank’s site before you open anything. Banks run limited-time promos and change rates based on how much you’re depositing.

I’m tracking brick-and-mortar banks, online banks, credit unions—the whole bunch. But only ones with FDIC or NCUA insurance. That’s the whole point. You’re not taking risk here. This is about getting paid that every rate shown here comes from a government-backed, safe institution. We exclude promotional rates that apply only to existing customers or require unusual conditions, focusing instead on standard, accessible terms for new depositors.

What Drives CD Rates Higher or Lower

I get asked this all the time: “Why did my bank just change its CD rates?” Short answer—blame the Fed. Or thank them, depending on which direction rates moved. The prime rate is basically the heartbeat of deposit pricing. When the Fed bumps up its target rate, banks scramble to adjust CD rates within a couple weeks. Rate cuts? Those hit even faster—banks love paying you less.

Then there’s Treasury yields. Think of 5-year Treasuries as the floor for 5-year CDs. Banks know you could just buy a Treasury bond instead, so they’ve gotta price CDs at least competitively. Right now we’ve got this weird inverted situation where shorter CDs actually pay more than longer ones. That happens when the market thinks rates will drop eventually. It’s a bit counterintuitive, but it’s been the reality since late 2024.

Here’s what really creates the spread between banks though: overhead. A bank with 2,000 branches paying rent, utilities, and tellers has to be stingy on deposit rates. An online bank running out of a single office? They can afford to pay you 0.50% to 1.00% more on the same CD term. That’s not a secret—it’s just math. Capital One 360 and Marcus don’t have marble lobbies to maintain.

One more wrinkle: individual bank balance sheets. When a bank needs deposits—say they’ve been lending aggressively and need to shore up reserves—they’ll jack up CD rates temporarily. That’s why you’ll occasionally spot a random credit union or community bank topping the national charts. It’s not generosity. They need your money. Check the Fed meeting schedule to anticipate where rates might head next.

CD Rate Trends in 2026

Let me paint the picture of where we are right now. March 2026, and the best 1-year CDs are still above 4.50%. Not bad at all. Two years ago, you couldn’t get 1% on a CD. Three years ago? Forget about it—rates were basically zero. The Fed’s aggressive hiking campaign in 2023 and 2024 was painful for borrowers but it was an absolute gift for anyone with cash to park.

We did see rates pull back a bit from the peak. Late 2024 was the high-water mark when some 1-year CDs briefly crossed 5.25%. That party ended when the Fed signaled it was done raising rates. But here’s what surprised me—rates haven’t cratered. The Fed’s been sitting tight, and that’s kept CD rates stubbornly elevated. I honestly expected more erosion by now.

The flat yield curve is the strangest part. You’d normally expect a 5-year CD to pay way more than a 1-year—you’re tying up your money for five times longer, right? But 5-year CDs at 3.85% versus 1-year at 4.50%? The market’s basically telling you it thinks rates will be lower in a few years. Whether that actually happens… who knows. The CD rate forecast page digs deeper into what the experts are predicting.

One genuinely good thing: real returns are positive. With inflation running around 2.5-3%, a 4.50% CD gives you roughly 1.5-2% in actual purchasing power growth. Compare that to 2021 when CDs paid 0.5% and inflation was 7%. You were literally losing money in “safe” investments back then. Today? CDs are doing what they’re supposed to do—beating inflation with zero risk.

How to Choose the Best CD for Your Goals

This is where people overthink things. The decision tree is actually simple. Ask yourself one question: when do I need this money back? That’s it. Saving for a kitchen remodel in 18 months? Grab a 1-year CD. Got a chunk of inheritance you won’t touch for years? A 5-year CD at 3.85% is perfectly reasonable. The biggest mistake I see is people locking money into a 3-year CD, then needing to break it six months later for a car repair. Early withdrawal penalties aren’t devastating, but they sting.

Speaking of penalties—this is where you really need to read the fine print. I’ve seen banks charge anywhere from 90 days of interest to a full year’s worth for early withdrawal. On a $10,000 CD at 4.50%, that’s the difference between losing $112 and losing $450. Some banks are more forgiving than others. Ally, for instance, has always been relatively gentle on early withdrawal fees. Marcus tends to be stricter. And no-penalty CDs exist, but they typically pay 0.25-0.50% less. It’s a tradeoff.

The CD ladder is my favorite move for anyone with $20,000 or more to deploy. Spread it across four or five different maturities. Every year, one CD matures and you either spend the money or roll it into a new long-term CD. You stay liquid, you hedge against rate changes, and you sleep well at night. It takes about 15 minutes to set up and then you basically forget about it.

One last thing: don’t chase the absolute highest rate at the expense of everything else. A credit union paying 4.65% sounds great until you realize they don’t have a mobile app, their customer service closes at 3 PM, and transferring money out takes five business days. The best CD rates are the ones where you actually feel comfortable parking your money.

CD Rates vs Other Savings Options

Alright, let’s cut through the noise. The best 1-year CD pays about 4.50%. The best high-yield savings account pays around 4.25%. That’s a 0.25% gap. On $10,000, we’re talking $25 extra per year for locking your money up for 12 months. Is that worth it? For some people, absolutely. For your emergency fund? Absolutely not. I keep my emergency stash in a high-yield savings account and I don’t lose a minute of sleep over the 0.25% I’m leaving on the table.

Money market accounts are in a weird middle ground right now. They pay roughly 4.30-4.40%, which is between savings accounts and CDs. The catch: most have monthly withdrawal limits. Six transactions per month is typical. If that doesn’t bother you, they’re a decent option. But honestly, with high-yield savings so competitive right now, money markets have lost some of their appeal.

What about Treasury bills? A 1-year T-bill yields around 4.35%—slightly less than top CDs. But here’s the kicker: Treasury interest is exempt from state and local income tax. If you live in California or New York with steep state income taxes, a 4.35% T-bill could net you more than a 4.50% CD after taxes. Plus you can sell Treasuries before maturity on the secondary market (though the price might be higher or lower than what you paid).

My honest take? Most people should use a mix. Emergency fund in a high-yield savings account—always. Money you won’t need for 6-12 months in a short-term CD or T-bill. And anything beyond that in a CD ladder. Don’t overthink the small rate differences. The real enemy of your savings isn’t a 0.25% rate gap—it’s leaving money in a checking account earning 0.01%.

Frequently Asked Questions About CD Rates

What’s the difference between APY and APR?

APY’s the real number—it factors in compound interest, so it’s what you’ll actually make. APR ignores compounding. For CDs, forget APR exists. Look at APY. That’s your answer.

Are CDs safe? What protects my money?

FDIC insurance covers you up to $250k per bank. Bank goes under? You’re getting paid back. Full stop. Credit unions? NCUA does the same thing. This is about as safe as money gets—which is the whole point of CDs.

Can I withdraw my CD early without penalty?

Technically yes, but the bank’s going to charge you. Could be a flat fee, could be months of interest—it depends on the bank. Some places offer ‘no-penalty’ CDs that let you out early, but you’ll take a lower rate for that flexibility. Pick your poison.

Should I open multiple CDs at the same bank or spread deposits across banks?

FDIC insurance covers up to $250,000 per account type per bank. If you have $500,000 to deposit, you could open a CD for $250,000 at one bank and another $250,000 CD at a different bank, fully protecting both deposits. Alternatively, you could open multiple CDs at the same bank (in your name, in joint names, in trust, etc.) as each account type gets separate coverage. But you might find better rates by spreading deposits—some banks offer premium rates on larger deposits, while others pay the same rate regardless of amount.

How often do CD rates change?

Every single day. Sometimes multiple times. Banks are watching each other like hawks and watching the Fed even closer. When the Fed moves, rates shift within a day or two. Breaking employment or inflation news? Same thing. This is why when you find a rate you like, you just grab it. Tomorrow it might be gone.

Do I owe taxes on CD interest?

Yep. Full tax hit as ordinary income. You’ll file it on your return. Here’s the thing though—the 4.50% rate you see? That’s before taxes. If you’re in the 24% bracket, you’re really making about 3.42%. Not as sexy, but that’s reality. Keep that in mind when you’re comparing rates.