CD rates remain near multi-decade highs in 2026, with the best accounts paying 4.50–5.00% APY. The key question for savers: is it better to lock in a CD rate now or keep money in a high-yield savings account where rates could drop? The answer depends on your timeline, whether the Fed keeps cutting rates, and how much liquidity you need.
This guide compares the best CD rates across every term length, from 3 months to 5 years.
Best CD Rates by Term Length
Short-Term CDs (3–12 Months)
| Bank | 3-Month | 6-Month | 9-Month | 12-Month | Min. Deposit |
|---|---|---|---|---|---|
| Bread Savings | 4.75% | 5.00% | 4.90% | 4.85% | $1,500 |
| Popular Direct | 4.70% | 4.90% | 4.85% | 4.80% | $10,000 |
| Marcus | 4.50% | 4.75% | 4.70% | 4.65% | $500 |
| Ally Bank | 4.40% | 4.50% | 4.45% | 4.40% | $0 |
| Discover | 4.30% | 4.40% | 4.35% | 4.30% | $2,500 |
| Capital One | 4.20% | 4.25% | 4.25% | 4.20% | $0 |
| Synchrony | 4.50% | 4.75% | 4.65% | 4.60% | $0 |
| Barclays | 4.35% | 4.50% | 4.45% | 4.40% | $0 |
Medium-Term CDs (18–36 Months)
| Bank | 18-Month | 24-Month | 30-Month | 36-Month | Min. Deposit |
|---|---|---|---|---|---|
| Bread Savings | 4.60% | 4.40% | 4.30% | 4.20% | $1,500 |
| Popular Direct | 4.55% | 4.35% | 4.25% | 4.15% | $10,000 |
| Marcus | 4.40% | 4.20% | 4.10% | 4.00% | $500 |
| Ally Bank | 4.20% | 4.00% | 3.90% | 3.80% | $0 |
| Discover | 4.10% | 4.00% | 3.90% | 3.80% | $2,500 |
| Synchrony | 4.35% | 4.15% | 4.05% | 3.95% | $0 |
| Barclays | 4.15% | 4.00% | 3.90% | 3.80% | $0 |
Long-Term CDs (48–60 Months)
| Bank | 48-Month | 60-Month | Min. Deposit |
|---|---|---|---|
| Bread Savings | 4.00% | 3.90% | $1,500 |
| Marcus | 3.85% | 3.75% | $500 |
| Ally Bank | 3.70% | 3.60% | $0 |
| Discover | 3.65% | 3.55% | $2,500 |
| Synchrony | 3.80% | 3.70% | $0 |
| Capital One | 3.60% | 3.50% | $0 |
APYs current as of April 2026. Rates are fixed for the CD term.
Best No-Penalty CDs
No-penalty CDs let you withdraw your full balance without an early withdrawal fee — giving you a fixed rate with savings-account flexibility.
| Bank | Term | APY | Min. Deposit | Penalty | Best Feature |
|---|---|---|---|---|---|
| Marcus | 11 months | 4.40% | $500 | $0 | Most popular no-penalty CD |
| Ally | 11 months | 4.15% | $0 | $0 | No minimum deposit |
| Capital One | 9 months | 4.00% | $0 | $0 | Short-term flexibility |
| CIT Bank | 11 months | 4.30% | $1,000 | $0 | Competitive rate |
| Discover | Various | 3.90% | $2,500 | $0 | Multiple term options |
When no-penalty CDs make sense: You want to lock in today’s rate but aren’t sure you won’t need the money. If rates rise, you can withdraw and reinvest. If rates drop, you keep the locked-in rate. It’s an asymmetric win.
How Much CDs Earn: Interest by Balance and Term
$10,000 CD — Interest Earned by Term
| Term | APY | Interest Earned | Total at Maturity |
|---|---|---|---|
| 6 months | 5.00% | $247 | $10,247 |
| 12 months | 4.85% | $485 | $10,485 |
| 18 months | 4.60% | $695 | $10,695 |
| 24 months | 4.40% | $899 | $10,899 |
| 36 months | 4.20% | $1,310 | $11,310 |
| 60 months | 3.90% | $2,109 | $12,109 |
$50,000 CD — Interest Earned by Term
| Term | APY | Interest Earned | Total at Maturity |
|---|---|---|---|
| 6 months | 5.00% | $1,233 | $51,233 |
| 12 months | 4.85% | $2,425 | $52,425 |
| 24 months | 4.40% | $4,497 | $54,497 |
| 36 months | 4.20% | $6,548 | $56,548 |
| 60 months | 3.90% | $10,543 | $60,543 |
$100,000 CD — Interest Earned by Term
| Term | APY | Interest Earned | Total at Maturity |
|---|---|---|---|
| 6 months | 5.00% | $2,466 | $102,466 |
| 12 months | 4.85% | $4,850 | $104,850 |
| 24 months | 4.40% | $8,994 | $108,994 |
| 60 months | 3.90% | $21,087 | $121,087 |
CD Laddering Strategy
CD laddering splits your savings across multiple CDs with staggered maturity dates, giving you regular access to portions of your money while earning longer-term rates.
Example: $50,000 CD Ladder
| CD | Amount | Term | APY | Maturity | Interest Earned |
|---|---|---|---|---|---|
| CD 1 | $10,000 | 12 months | 4.85% | April 2027 | $485 |
| CD 2 | $10,000 | 24 months | 4.40% | April 2028 | $899 |
| CD 3 | $10,000 | 36 months | 4.20% | April 2029 | $1,310 |
| CD 4 | $10,000 | 48 months | 4.00% | April 2030 | $1,699 |
| CD 5 | $10,000 | 60 months | 3.90% | April 2031 | $2,109 |
| Total | $50,000 | — | 4.27% avg | — | $6,502 |
How it works: When CD 1 matures in 12 months, you either use the money or reinvest in a new 60-month CD. Each year, one CD matures — giving you annual access while most of your money earns longer-term rates. For more detail, see our CD laddering strategy guide.
CD Ladder vs. Single CD vs. HYSA
| Strategy | Amount | 5-Year Total Interest | Liquidity | Rate Risk |
|---|---|---|---|---|
| 5-rung CD ladder | $50,000 | $6,502 | Annual access to $10K | Moderate protection |
| Single 60-month CD | $50,000 | $10,543 | None (penalty to access) | Full protection |
| Single 12-month CD (renewed) | $50,000 | Varies with rate | Annual access to all | No protection |
| High-yield savings at 4.50% | $50,000 | ~$12,300 at constant rate | Full access anytime | No protection |
Early Withdrawal Penalties by Bank
If you need to break a CD early, here’s what it costs:
| Bank | 3–11 Month CD | 12–23 Month CD | 24–35 Month CD | 36–47 Month CD | 48–60 Month CD |
|---|---|---|---|---|---|
| Ally | 60 days interest | 60 days | 90 days | 120 days | 150 days |
| Marcus | 90 days interest | 90 days | 270 days | 270 days | 365 days |
| Discover | 3 months interest | 6 months | 9 months | 18 months | 18 months |
| Capital One | 3 months interest | 6 months | 6 months | 12 months | 12 months |
| Bread Savings | 90 days interest | 180 days | 180 days | 365 days | 365 days |
Ally has the lowest penalties across most terms, making it the best choice if there’s any chance you might need to access your money early.
CD vs. High-Yield Savings: When CDs Win
Scenario Analysis
| Scenario | CD Advantage | HYSA Advantage | Winner |
|---|---|---|---|
| You won’t touch money for 12+ months | Lock in rate; protected from cuts | — | CD |
| Fed is expected to cut rates | Guaranteed rate | Rate drops with Fed | CD |
| Fed may raise rates | Locked at lower rate | Rate rises with Fed | HYSA |
| Emergency fund | Penalty for early access | Full access anytime | HYSA |
| Known future expense (wedding, tuition) | Match CD term to date | Rate might drop before expense | CD |
| Rates are flat/uncertain | Slight edge if rate is higher | Full flexibility | Tie |
Current environment (2026): With the Fed potentially continuing to ease, locking in current rates with CDs makes more sense than usual. A 24-month CD at 4.40% protects you even if savings account rates fall to 3.00–3.50%.
Jumbo CD Rates
Jumbo CDs require $100,000+ deposits but sometimes offer higher rates:
| Bank | 12-Month Jumbo | 24-Month Jumbo | 60-Month Jumbo | Minimum |
|---|---|---|---|---|
| Bread Savings | 4.90% | 4.45% | 3.95% | $100,000 |
| EverBank | 4.85% | 4.40% | 3.90% | $100,000 |
| Discover | 4.35% | 4.05% | 3.60% | $100,000 |
In the current environment, the jumbo rate premium has narrowed significantly — often just 0.05–0.10% above standard CDs. Unless you’re depositing $100,000+ already, standard CDs offer nearly identical rates.
Taxes on CD Interest
Tax Impact on a $25,000, 12-Month CD at 4.85% APY
| Tax Bracket | Federal Rate | Interest Earned | Federal Tax | After-Tax Return | Effective APY |
|---|---|---|---|---|---|
| 10% | 10% | $1,213 | $121 | $1,092 | 4.37% |
| 12% | 12% | $1,213 | $146 | $1,067 | 4.27% |
| 22% | 22% | $1,213 | $267 | $946 | 3.78% |
| 24% | 24% | $1,213 | $291 | $922 | 3.69% |
| 32% | 32% | $1,213 | $388 | $825 | 3.30% |
| 35% | 35% | $1,213 | $425 | $788 | 3.15% |
CD interest is taxed as ordinary income in the year it’s earned — even if the CD hasn’t matured yet (for multi-year CDs). Your bank will issue a 1099-INT annually. If you’re in a high tax bracket in a high-tax state, consider Treasury bills — they’re exempt from state income tax.
How to Open a CD
| Step | Action | Notes |
|---|---|---|
| 1 | Choose your term based on when you’ll need the money | Match term to your timeline |
| 2 | Compare rates from the tables above | Focus on your specific term |
| 3 | Check minimum deposit requirements | $0–$10,000 depending on bank |
| 4 | Apply online (5–10 minutes) | Name, address, SSN, ID |
| 5 | Fund via ACH transfer | 1–3 business days |
| 6 | Set a calendar reminder for maturity date | Avoid unwanted auto-renewal |
Auto-renewal warning: Most CDs auto-renew at maturity — often at a lower rate. Set a reminder 1–2 weeks before your CD matures to decide whether to renew, withdraw, or move money elsewhere.
See the full CD guide for laddering strategies, minimum deposits, and CD vs. HYSA comparisons.
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