The Best CD Rates in 2026: Compare Top Banks and Terms

Certificates of deposit (CDs) are savings accounts that typically offer higher interest rates than standard savings accounts. In exchange for better rates, you store your money in the account for a set period of time — typically a few months to a few years — without withdrawing any.

Annual percentage yield (APY) rates for CDs range from 1% to 5%. The length of the term typically determines the rate. Many institutions currently offer low rates on longer-term CDs, but some have higher rates for longer terms.^[1]

We’ll cover how to get the best rate on your CD and the common pitfalls to watch out for.

Which Banks Offer the Best CD Rates?

To help you find the best deal, we reviewed dozens of certificates of deposit rate sheets and promotions from different banks and credit unions.

Below are 10 solid options that offer a mix of term lengths, interest rates, and minimum deposits, according to Compare.com research.

Bank	6-Month APY	1-Year APY	3-Year APY	5-Year APY	Minimum Deposit
Vanguard	3.85%	4.00%	4.15%	4.15%	$1,000
Service Credit Union	3.75%	4.00%	2.35%	2.50%	$500
Mountain America Credit Union	3.75%	3.90%	4.00%	4.05%	$500
OMB	4.25%	3.80%	0.70%	0.70%	$1,000
NuVision Federal	5.00%	3.75%	2.55%	3.10%	$1,000
Consumers Credit Union	4.10%	3.90%	1.30%	1.50%	$250
LendingClub	3.90%	3.50%	3.45%	3.40%	$500
Limelight	4.08%	4.03%	3.65%	3.30%	$1,000
E-Trade	4.05%	4.10%	3.95%	3.95%	$0
Capital One	3.20%	3.90%	3.50%	3.60%	$0
PNC	3.30%	2.00%	2.40%	2.60%	$1,000

Best online banks for CDs

Online banks often offer better interest rates for CDs, partly because they don’t pay to operate physical branches. Rates from online banks range from 3.30% at Ally to 4.05% at Marcus by Goldman Sachs. LendingClub and Limelight also offer competitive rates.

Online banks usually offer a more straightforward process than traditional banks. That makes it easy to open an account or roll over your money into a new CD.

Best traditional banks for CDs

Traditional banks sometimes offer competitive CD interest rates, especially during promotions. Plus, brick-and-mortar branches mean you can speak with someone in person about your accounts.

Smaller community banks sometimes lack flashy features but usually provide strong customer service. Credit unions are also known for local investments and personal care. Plus, credit unions generally offer higher interest rates on CDs.

Beyond traditional banks, also explore investment institutions. Many firms offer brokered CDs that act the same as bank CDs. E-Trade, Vanguard, and others sometimes offer better rates than traditional banks, and even than some online banks.

Best CD Rates by Term Length

CD rates can vary significantly by term length. But today’s CD market is generally flat, meaning short- and mid-term CDs often pay as much as, or close to, longer-term CDs. The highest rate we found was 5% APY for a six-month CD from NuVision Federal. Most institutions pay around 4% APY on short- and long-term deposits.

Promotional rates offer higher-than-average returns, but usually only on short-term CDs. Here’s an overview of some of the highest rates by term length, according to our research.

CD Term	National Average APY	Highest Available APY	Bank with the Best Rate
3 months	1.28%	4.05%	OMB Bank
6 months	1.47%	5.00%	NuVision Federal
1 year	1.52%	4.10%	E-Trade
2 years	1.49%	4.00%	Edward Jones
3 years	1.31%	4.15%	Vanguard
5 years	1.34%	4.15%	Vanguard

How to Compare Special-Term CDs and Promotions

Banks and other financial institutions frequently use limited-time offers, promotional rates, and non-standard term lengths to attract deposits from new and current customers.

These promotions can save you money but may automatically roll over to a lower-value account. Review the fine print carefully and set reminders to decide what to do with your money when your CD matures.

If you want to manage your account less, you can park your CD in a longer-term account. You can also set up a CD ladder, allowing a portion of your savings to roll over or move elsewhere each year.^[2] This spreads your risk out if rates suddenly change.

How to Shop for the Best CD Rates

With hundreds of CD options to choose from, it can be hard to know where to start. Here are some steps to make the process easier.

1. Define your financial goals. Decide how much money you want to deposit into a CD and for how long.

2. Compare rates. Review rates and term lengths from traditional banks, online banks, credit unions, and brokerage platforms.

3. Review the fine print. Check minimum deposit requirements, early withdrawal penalties, and funding grace periods.

4. Understand maturity terms. Review what happens with your CD when it matures and whether funds roll over automatically into another CD.

5. Confirm FDIC insurance status. Look for the financial institution’s “Member FDIC” certification. Most institutions post this prominently.

6. Buy the CD. Complete the initial forms and transfer at least the minimum required deposit to fund the account.

APY vs. nominal rate

The nominal rate of a CD is the base interest rate on the account, such as 4%. But interest usually compounds throughout the life of the CD. So by the time it matures, you’ll typically have made more than 4% on your initial investment.

The total return on your CD is the annual percentage yield (APY). In this case, the APY would be about 4.08%, depending on how often interest compounds.

Because APY reflects how often the institution adds interest to your balance, it’s a better metric for comparing CD rates. Some banks compound interest monthly, others weekly. That frequency can make a noticeable difference in your returns.

Moving your money to capture higher rates

Sudden rate increases are the biggest risk with CDs. If rates rise from 2% to 4% shortly after you open a three-year CD, your money would be stuck at a lower rate. Most financial institutions charge early withdrawal fees, usually a portion or all of the earned interest. This offsets the gain of moving your money when rates increase.

If the fee is small and the difference in interest rates is high, you should consider switching. But it often makes sense to wait, especially if your CD matures relatively soon.

Are CD Rates Expected to Go Up or Down in 2026?

CD rates are tied to the federal funds rate. The Federal Reserve has kept rates stable so far this year. But with inflation at 3.3%, the Fed may try to slow it down by raising rates.^[3] The economy may also be cooling, which usually leads to rate decreases. So this is a volatile space right now.

The verdict: Short-term promotions or high-yield savings accounts may be worth the flexibility, given the current market conditions.

Risks and Limitations of Chasing Best Rates

Moving your money frequently in pursuit of higher rates may yield diminishing returns, especially if you incur early withdrawal penalties. Keeping money only in long-term savings means you could lose out if rates suddenly rise. Plus, the return on managing your CD strategy perfectly may not be worth your time.

Comparing rates makes the most sense when there’s a meaningful gap between banks. Otherwise, it’s usually better to set up something that follows your savings timelines, can be automated, and makes saving easier.

Best CD Rates FAQs