US CD Rates 2026: Compare Certificates of Deposit Today

Certificates of Deposit have long served as a cornerstone savings product for Americans looking to grow their money with predictable, stable returns. Unlike market-based investments, CDs offer fixed interest rates for specified periods, making them particularly attractive during times of economic uncertainty. Whether you’re building an emergency fund, saving for a major purchase, or diversifying your financial portfolio, understanding the mechanics and advantages of CDs can help you maximize your savings potential while keeping your principal protected.

What Are Fixed Interest Rates for CDs?

Fixed interest rates represent the guaranteed annual percentage yield you’ll earn on your CD throughout its entire term. When you open a CD, the financial institution locks in your rate, meaning it won’t fluctuate regardless of broader market conditions. This predictability distinguishes CDs from variable-rate savings products. For example, a 12-month CD offering 4.5% APY will deliver that exact return for the full year, regardless of whether the Federal Reserve raises or lowers benchmark rates during that period. The fixed nature protects savers from rate decreases but also means you won’t benefit if rates climb after you’ve committed your funds. Rate levels vary based on term length, deposit amount, and the institution’s current offerings, with longer terms typically commanding higher rates to compensate for reduced liquidity.

How Does FDIC Insurance Protect Your Deposits?

The Federal Deposit Insurance Corporation provides crucial protection for CD holders at member banks, insuring deposits up to $250,000 per depositor, per insured bank, for each account ownership category. This means your principal and accrued interest remain protected even if the financial institution fails. FDIC coverage applies automatically to CDs held at member banks without requiring separate enrollment or fees. For credit unions, the National Credit Union Administration offers equivalent protection through the National Credit Union Share Insurance Fund. This government backing makes CDs one of the safest savings vehicles available, eliminating the principal risk associated with stock market investments or corporate bonds. To maximize protection on larger deposits, savers can spread funds across multiple institutions or use different account ownership structures, ensuring full coverage for amounts exceeding the standard limit.

What CD Term Lengths and Flexibility Options Are Available?

Certificates of Deposit come in various term lengths ranging from as short as one month to as long as ten years, with common options including 3-month, 6-month, 1-year, 18-month, 2-year, 3-year, and 5-year terms. Shorter terms provide quicker access to your funds and the opportunity to reinvest at potentially higher rates sooner, while longer terms generally offer higher interest rates in exchange for extended commitment. Traditional CDs impose early withdrawal penalties if you access funds before maturity, typically forfeiting several months of interest. However, some institutions now offer no-penalty CDs that allow withdrawal without fees after a brief initial period, though these usually carry slightly lower rates. Bump-up CDs permit one-time rate increases if market rates rise during your term, while step-up CDs feature predetermined rate increases at set intervals. CD laddering strategies involve opening multiple CDs with staggered maturity dates, providing regular access to portions of your savings while maintaining higher average yields.

CDs vs. High-Yield Savings Accounts: Which One Grows Your Money Faster?

Both CDs and high-yield savings accounts offer competitive interest rates compared to traditional savings accounts, but they serve different financial needs. High-yield savings accounts provide complete liquidity, allowing unlimited withdrawals and deposits while earning variable interest rates that adjust with market conditions. CDs typically offer slightly higher rates in exchange for locking funds away for a predetermined period. For example, current market conditions might show 1-year CDs offering rates between 4.00% and 5.00% APY, while high-yield savings accounts range from 3.75% to 4.50% APY. The best choice depends on your timeline and liquidity needs. If you won’t need the funds for a specific period and want guaranteed returns, CDs provide superior rate stability. For emergency funds or savings you might need to access unexpectedly, high-yield savings accounts offer better flexibility despite potentially lower returns. Some savers use both products strategically, keeping emergency funds in accessible accounts while placing longer-term savings in CDs for enhanced yields.

Where Are the Best CD Rates Right Now? Banks vs. Credit Unions

Competitive CD rates are available from various financial institutions, with online banks, traditional banks, and credit unions each offering distinct advantages. Online banks frequently provide the highest rates due to lower overhead costs, with some currently offering 1-year CDs above 4.50% APY. Traditional brick-and-mortar banks typically offer more modest rates but provide in-person service and relationship banking benefits. Credit unions, member-owned cooperatives, often feature competitive rates that fall between online and traditional banks while offering personalized service and community focus.

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

Rate shopping across multiple institutions remains essential, as offerings change frequently based on economic conditions and institutional funding needs. Many comparison websites aggregate current rates, making it easier to identify top-paying CDs. When evaluating options, consider not just the advertised rate but also minimum deposit requirements, early withdrawal penalties, and whether the institution carries FDIC or NCUA insurance. Some institutions offer promotional rates for new customers or higher rates for larger deposits, so exploring various options can significantly impact your returns over time.

Making Smart CD Decisions for Your Financial Goals

Certificates of Deposit continue to serve as valuable tools for conservative savers seeking guaranteed returns with government-backed protection. By understanding fixed interest rates, insurance coverage, term flexibility, and how CDs compare to alternative savings products, you can make informed decisions aligned with your financial timeline and goals. Whether you choose a traditional bank, online institution, or credit union, taking time to compare current offerings ensures you maximize returns while maintaining the security and predictability that make CDs attractive. As interest rate environments evolve, regularly reviewing your CD strategy helps ensure your savings work as efficiently as possible toward your financial objectives.