Certificates of Deposit (CDs) currently pay 4.25–4.75% APY — near their highest levels in over a decade — and offer a guaranteed fixed rate for the full term. The main trade-off is liquidity: your money is locked until the CD matures, and early withdrawal costs 60–365 days of interest depending on the bank and term. This hub covers everything you need to know about CDs in 2026: best rates, how to calculate earnings, laddering strategies, minimum deposits, and how CDs compare to HYSAs and Treasury bills.
Current CD Rates by Term (2026)
| Term | Best Rate | Typical Online Rate | Big Bank Rate |
|---|---|---|---|
| 3 months | 4.75% | 4.25–4.50% | 0.15–0.50% |
| 6 months | 4.65% | 4.00–4.50% | 0.15–0.50% |
| 12 months | 4.75% | 4.00–4.50% | 0.20–0.50% |
| 18 months | 4.25% | 3.75–4.25% | 0.25–0.50% |
| 24 months | 4.00% | 3.50–4.00% | 0.25–0.50% |
| 36 months | 3.80% | 3.25–3.80% | 0.25–0.50% |
| 60 months | 3.60% | 3.25–3.60% | 0.25–0.50% |
Rates from FDIC-insured banks and credit unions. Updated regularly. See best CD rates by term for full bank-by-bank tables.
CD Earnings at a Glance
$10,000 CD at 4.50% APY
| Term | Interest Earned | Total at Maturity |
|---|---|---|
| 6 months | $223 | $10,223 |
| 12 months | $450 | $10,450 |
| 24 months | $920 | $10,920 |
| 36 months | $1,412 | $11,412 |
| 60 months | $2,462 | $12,462 |
For earnings at any rate, term, or balance → CD Calculator
For how much $10,000 earns specifically → How Much Does $10,000 Earn in a CD?
How CDs Work
- Deposit — Open a CD with a minimum deposit ($0 at Ally and Capital One; $500 at Marcus; $2,500 at Discover)
- Lock in rate — Your APY is fixed for the entire term
- Earn interest — Compounds daily or monthly, paid at maturity or periodically
- Maturity — Withdraw principal + interest, or roll into a new CD
- Early withdrawal — Possible but costs 60–365 days of interest depending on bank
Key CD Features
| Feature | Details |
|---|---|
| FDIC insured | Up to $250,000 per depositor per bank |
| Rate | Fixed for the entire term |
| Early withdrawal penalty | 60–365 days of interest (varies by bank/term) |
| Auto-renewal | Most CDs auto-renew at maturity — set a calendar alert |
| Tax treatment | Interest taxed as ordinary income (annually, even for multi-year CDs) |
CD Guides in This Cluster
| Guide | What It Covers |
|---|---|
| CD Rates 2026 | How CDs work, earnings tables, types, taxes |
| Best CD Rates of 2026 | Top APYs by term, no-penalty CDs, jumbo CDs, bank comparison |
| Best CD Rates by Term | Bank-by-bank tables for every term from 3 months to 5 years |
| CD Calculator | Returns at any rate, term, and balance; CD ladder calculations |
| CD Laddering Strategy | How to build a CD ladder step by step with examples |
| CD Minimum Deposit by Bank | $0 vs $2,500 minimum deposits at every major bank |
| CDs vs Treasury Bills | Rate comparison, state tax advantage, when T-bills win |
| High-Yield Savings vs CD | Liquidity vs rate lock, earnings scenarios, which to choose |
| HYSA vs CD vs Money Market | Three-way comparison by goal and situation |
| How Much Does $10K Earn in a CD? | Earnings by term and rate for a $10,000 deposit |
CD vs High-Yield Savings vs Money Market
| Feature | CD | HYSA | Money Market |
|---|---|---|---|
| Best 2026 rate | 4.75% | 4.75% | 4.50% |
| Rate type | Fixed | Variable | Variable |
| Access | At maturity only | Anytime | Anytime |
| Check writing | No | No | Yes |
| Minimum balance | $0–$2,500 | $0 | $0–$2,500 |
| FDIC insured | Yes | Yes | Yes |
| Best for | Known future expense | Emergency fund | Large liquid balances |
→ Full three-way comparison: HYSA vs CD vs Money Market
CD Laddering Strategy
A CD ladder splits your money across multiple CDs with staggered terms so you earn higher long-term rates while maintaining periodic access.
Example: $25,000 CD Ladder
| CD | Amount | Term | APY | Matures |
|---|---|---|---|---|
| CD 1 | $5,000 | 12 months | 4.75% | May 2027 |
| CD 2 | $5,000 | 24 months | 4.00% | May 2028 |
| CD 3 | $5,000 | 36 months | 3.80% | May 2029 |
| CD 4 | $5,000 | 48 months | 3.70% | May 2030 |
| CD 5 | $5,000 | 60 months | 3.60% | May 2031 |
When CD 1 matures, reinvest into a new 60-month CD. After 5 years, one CD matures every year — combining higher long-term rates with annual liquidity.
→ Full step-by-step guide: CD Laddering Strategy
CDs vs Treasury Bills
Treasury bills (T-bills) offer a meaningful tax advantage: interest is exempt from state and local income tax, while CD interest is fully taxable at federal and state levels.
| State Tax Rate | 5.00% T-Bill Tax-Equivalent CD Rate |
|---|---|
| 0% (TX, FL, etc.) | 5.00% (no advantage) |
| 5% | 5.26% |
| 8% | 5.43% |
| 10% | 5.56% |
| 13.3% (CA) | 5.77% |
If you’re in a high-tax state, a 5.00% T-bill can be worth more than a 5.77% CD after taxes.
→ Full comparison: CDs vs Treasury Bills
When to Use a CD
✅ You have a known future expense — match the CD term to the date (down payment, tuition, wedding)
✅ You want to lock in current rates — if the Fed cuts rates, your HYSA APY drops; your CD rate doesn’t
✅ You want guaranteed returns — no market risk, FDIC insured
✅ You need spending discipline — the penalty discourages impulse withdrawals
❌ Emergency fund — always use a HYSA; CDs are never right for money you might need urgently
❌ Short-term (under 3 months) — HYSA flexibility wins when the timeline is uncertain
❌ Very large balances over $250K — consider spreading across banks or using T-bills (no FDIC cap)
Early Withdrawal Penalties by Bank
| Bank | 12-Month CD Penalty | 60-Month CD Penalty |
|---|---|---|
| Ally | 60 days interest | 150 days interest |
| Marcus | 270 days interest | 365 days interest |
| Discover | 6 months interest | 18 months interest |
| Capital One | 6 months interest | 12 months interest |
| Chase | 180 days interest | 365 days interest |
→ Full penalty table by bank: CD Minimum Deposit by Bank
Bottom Line
CDs are the right choice for surplus savings with a known timeline — not emergency funds. In 2026, the best CD rates match or slightly exceed top HYSA rates, making short-term CDs (6–12 months) particularly attractive for anyone who wants to lock in before potential Fed rate cuts. The ideal strategy for larger balances: keep 3–6 months of expenses in a liquid HYSA, then put surplus savings into a CD ladder.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy