Best CD Rates Today

Laura Adams, MBA  |  Reviewed by Mitch Strohm  |  Updated: April 11, 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 This page gives you the real picture—what’s happening today, not some outdated rate sheet from last month.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%.

What Are the Best CD Rates Right Now?

As of late March 2026, the best CD rates are coming from online banks and credit unions, which consistently outpay traditional brick-and-mortar institutions. Top 1-year CDs are paying 4.40%–4.55% APY, while the best 6-month CDs offer 4.30%–4.50% APY. Longer-term 3-year and 5-year CDs have dipped below 4.00% APY at most banks, reflecting market expectations that the Fed will continue easing over the next few years. The FDIC national average for a 1-year CD is just 1.82% — meaning the best rates are roughly 2.5× the national average.

The sweet spot right now is the 6-month to 12-month range, where savers can lock in rates above 4.40% APY with relatively short commitments. For a $10,000 deposit, a 1-year CD at 4.50% APY earns $450 in guaranteed interest — compared to just $182 at the national average. Online-only banks like Marcus, Ally, and Discover typically lead the rate tables because they have lower overhead costs. Credit unions also compete aggressively, especially for shorter terms. Check the comparison table above for today’s top rates across all major terms, updated daily.

Are CD Rates Going Up or Down in 2026?

CD rates are expected to drift lower through the remainder of 2026, but the decline will be gradual. The Federal Reserve held rates steady at 3.50%–3.75% at its March 2026 meeting, and the FOMC’s dot plot projects one more 25-basis-point cut this year — most likely at the June or September meeting. Futures markets price in up to two cuts, which would bring the fed funds rate to 3.00%–3.25% by year-end. Since CD rates are closely tied to the federal funds rate, each 25bp cut typically translates to a 15–25bp decline in the best CD offers within 2–4 weeks.

The practical implication for savers: today’s CD rates are likely near their ceiling for this cycle. If you’re sitting on cash that you won’t need for 6–12 months, locking in now captures a rate that will probably look increasingly attractive as the year progresses. A CD ladder strategy — splitting your deposit across multiple terms (3-month, 6-month, 12-month) — hedges against both scenarios: if rates stay flat, you still earn strong yields; if rates drop, your longer-term CDs keep paying above-market returns while shorter rungs mature and can be reinvested at whatever the market offers.

Is Now a Good Time to Open a CD?

Yes — for money you can commit for at least 3–12 months, this is one of the better CD environments in recent memory. Current top rates above 4.40% APY are well above the long-term historical average of roughly 2.5%–3.0%, and they are virtually certain to decline once the Fed resumes cutting. The key advantage of a CD over a high-yield savings account is that your rate is locked in for the full term — even if the Fed cuts three times, your CD keeps paying the original APY.

That said, CDs are not ideal for everyone. If you might need the money before the term ends, early withdrawal penalties (typically 3–6 months of interest) can erase your rate advantage. In that case, a high-yield savings account at 4.00%–4.25% APY gives you full liquidity with only a slight rate sacrifice. The best approach for most savers is a combination: keep 3–6 months of expenses in a liquid savings account for emergencies, then put any surplus into CDs to capture the higher locked-in rate. For larger sums, a CD ladder spreads your maturities so that some portion of your money becomes available every few months without penalty.

Frequently Asked Questions About CD Rates

What’s the difference between APY and APR?

APY (annual percentage yield) is the number that matters for CDs because it factors in compound interest — it’s what you’ll actually earn over a year. APR (annual percentage rate) ignores compounding entirely, so it understates your real return. For example, a CD advertised at 4.50% APY with daily compounding has an APR of roughly 4.40% — you’d be shortchanging yourself by comparing on APR alone. When shopping for CDs, always compare APY to APY. The FDIC national rates page reports everything in APY, making it the standard benchmark for savers.

Are CDs safe? What protects my money?

CDs at FDIC-insured banks are covered up to $250,000 per depositor, per bank, per ownership category — meaning if the bank fails, the government guarantees you get your money back. Credit unions carry the equivalent protection through the NCUA. This makes CDs one of the safest places to park money, with zero principal risk as long as you stay under the insurance limit. For deposits above $250,000, you can spread money across multiple banks or use different ownership categories (individual, joint, trust) at the same bank to maximize coverage. Unlike stocks or bonds, a CD’s return is locked in the day you open it — no market fluctuation can touch it.

Can I withdraw my CD early without penalty?

You can, but the bank will charge an early withdrawal penalty — typically 3 to 6 months of interest depending on the term length. On a 1-year CD at 4.50% APY with a $10,000 deposit, a 3-month penalty would cost you about $113, eating into your earnings significantly. If liquidity is a concern, consider no-penalty CDs, which let you pull out early without a fee, though they typically pay 0.25%–0.50% less than standard CDs. Another option is building a CD ladder so that a portion of your money matures every few months, giving you regular access without breaking any CDs early.

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

It depends on how much you’re depositing. FDIC insurance covers up to $250,000 per ownership category per bank, so if you have $500,000 you’d want to split it across two banks to fully protect both deposits. Even below the insurance limit, spreading deposits can pay off — different banks offer different rates depending on the term, so you might get 4.50% on a 1-year at one bank and 4.40% on a 6-month at another. You can also open multiple CDs at the same bank under different ownership types (individual, joint, trust) for separate FDIC coverage on each. A CD ladder strategy naturally spreads your money across multiple terms, giving you both rate diversification and regular liquidity.

How often do CD rates change?

Banks can change their posted CD rates daily, and competitive online banks frequently do. The biggest driver is the Federal Reserve: when the FOMC adjusts the federal funds rate, banks typically reprice their CDs within a day or two. Major economic data releases — like CPI inflation reports or employment numbers — can also trigger rate changes as banks anticipate the Fed’s next move. Right now the Fed is holding rates steady at 3.50%–3.75%, which is keeping CD rates relatively stable, but if the market starts pricing in a cut at the June or September meeting, you could see top CD rates start drifting lower. That’s why locking in a good rate when you see it is smart — it won’t necessarily be there next week.

Do I owe taxes on CD interest?

Yes — CD interest is taxed as ordinary income at your federal tax bracket rate, plus state income tax if applicable. Your bank will send you a 1099-INT form each year showing the interest earned. At a 4.50% APY, someone in the 24% federal bracket effectively earns about 3.42% after federal taxes, or even less after state taxes. One thing to note: with multi-year CDs, you owe taxes on the interest accrued each year, not just when the CD matures — so a 3-year CD will generate a 1099-INT annually. If you’re in a high tax bracket, consider holding CDs in a tax-advantaged account like an IRA, where the interest grows tax-deferred or tax-free depending on the account type.

What is the best 1-year CD rate right now?

The best 1-year CD rate right now is 4.50% APY, offered by online banks and FDIC-insured institutions competing aggressively for deposits. That’s more than double the national average of 1.88% reported by the FDIC, which means choosing the right bank makes a real difference — on a $10,000 deposit, the top rate earns you $450 versus just $188 at the average bank. The 1-year term is currently the sweet spot in the CD market because short-term rates remain elevated while the Fed holds rates steady at 3.50%–3.75%. If the FOMC cuts later this year as markets expect, today’s 1-year rates will likely drop, so locking in now guarantees your return regardless of what happens next.