Updated March 10, 2026
Today's Best CD Rates
Best certificate of deposit (CD) rates from top banks and credit unions.
3-Month CD
4.50%
6-Month CD
4.65%
1-Year CD
4.75%
2-Year CD
4.40%
3-Year CD
4.25%
5-Year CD
4.10%
Rate Trends
3-Month CD
6-Month CD
1-Year CD
2-Year CD
3-Year CD
5-Year CD
Lender Comparison
CD Rates — Lender Comparison
| Lender | Rate ↑ | APR ⇅ | |
|---|---|---|---|
American Express | 4.55% | 4.55% | Apply Now |
Capital One | 4.60% | 4.60% | Apply Now |
Barclays | 4.65% | 4.65% | Apply Now |
Discover | 4.70% | 4.70% | Apply Now |
Ally BankFeatured | 4.75% | 4.75% | Apply Now |
Marcus by Goldman SachsFeatured | 4.90% | 4.90% | Apply Now |
Synchrony BankFeatured | 5.10% | 5.10% | Apply Now |
Understanding CD Rates
What Affects CD Rates
CD rates track the federal funds rate and Treasury yields. Longer-term CDs typically offer higher rates to compensate for locking your money away longer, though the yield curve can invert during certain economic conditions. Online banks and credit unions tend to offer the most competitive CD rates. Bank competition and deposit needs also play a role.
APY vs Interest Rate
For CDs, the APY reflects the actual annual return including compound interest. The stated interest rate does not include compounding. Always compare CDs using APY rather than the stated rate. Most CDs compound daily or monthly, with daily compounding yielding slightly more.
Early Withdrawal Penalties
Traditional CDs penalize you for withdrawing funds before maturity. Penalties typically range from 3 months of interest (for CDs under 1 year) to 6-12 months of interest (for longer terms). Some banks offer no-penalty CDs that allow early withdrawal without fees, though rates are usually slightly lower.
Historical Context
Savings and CD rates have been at multi-year highs following the Federal Reserve's rate hiking cycle. High-yield savings accounts are paying 10-25x more than the national average from traditional banks. As the Fed begins easing, these rates may gradually decline, making it a good time to lock in CD rates.
How to Get the Best CD Rate
Build a CD ladder (staggered terms) to balance rate and liquidity.
No-penalty CDs let you withdraw early without fees — useful when rates are volatile.
Credit unions often offer higher CD rates than large banks.
Consider brokered CDs through your investment account for competitive rates.
Lock in longer terms when you expect rates to drop.
Get Notified When CD Rates Drop
Set a custom threshold and receive instant alerts when cd rates fall below your target. Never miss the perfect rate window.
Calculate What These Rates Mean for You
Frequently Asked Questions
What is a CD ladder and should I build one?
A CD ladder is a strategy where you divide your savings across CDs with staggered maturity dates (e.g., 1-year, 2-year, 3-year, 4-year, and 5-year). As each CD matures, you reinvest at the longest term. This balances earning higher long-term rates with maintaining regular access to your funds.
What happens if I withdraw from a CD early?
Most CDs charge an early withdrawal penalty if you take your money out before the maturity date. Penalties typically range from 3 months to 12 months of interest, depending on the CD term. No-penalty CDs are available but usually offer slightly lower rates.
Are CD rates fixed for the entire term?
Yes, traditional CDs have a fixed rate that is locked in for the entire term when you open the account. This is one of the main advantages of CDs: you are guaranteed that rate regardless of what happens to market rates. Some banks offer variable-rate or step-up CDs, but these are less common.
How are CD interest earnings taxed?
CD interest is taxed as ordinary income at the federal level and potentially at the state level. Your bank will issue a 1099-INT form for any interest earned over $10. Interest is taxable in the year it is earned, even if you do not withdraw it until the CD matures.
Should I lock in a long-term CD now?
With rates potentially declining as the Federal Reserve eases monetary policy, locking in a longer-term CD at current rates could be advantageous. However, consider your liquidity needs and whether you might need access to the funds before maturity.
Related Rate Categories
Mortgage Rates
Current mortgage rates for home purchases including conventional, FHA, VA, and jumbo loans.
6.75%
Refinance Rates
Today's best refinance rates for rate-and-term and cash-out refinancing.
6.85%
Savings Rates
Best high-yield savings account rates, money market rates, and regular savings rates.
4.85%
Auto Loan Rates
Current auto loan rates for new and used car financing.
5.85%
Rates shown are for informational purposes only and do not constitute a loan offer or financial advice. All rates are subject to change without notice. Last updated: March 10, 2026.