Best CD Rates of 2026: Top Yields by Term

A certificate of deposit (CD) is a savings account that pays you a fixed interest rate in exchange for agreeing to leave your money untouched for a set period, from a few months to several years. If you can park cash you will not need soon, CDs remain one of the simplest ways to earn a guaranteed return — and as of early October 2026, the best CD rates still reach about 5.00% APY, far above the national average.

The rate environment has cooled, though. CD yields peaked in late 2023 and have drifted downward since, particularly after the Federal Reserve cut its benchmark rate three times in late 2025. Rates held broadly steady through most of 2026, but the trend favors locking in a competitive yield sooner rather than waiting. Below is a snapshot of where CD rates stand this month, which institutions are paying the most, and how to use CDs strategically.

CD Rates by Term: October 2026 Snapshot

The gap between what the average bank pays and what the best online banks and credit unions offer is wide. Bankrate’s survey as of October 3, 2026, puts the national average at 2.12% APY for a one-year CD, 1.74% for a three-year CD, and 1.79% for a five-year CD. The FDIC reports a 1.71% average for 12-month CDs. By contrast, the average yield among the top high-yield CDs is 4.58%, according to DepositAccounts.com (cited by the Wall Street Journal).

The table below shows the top APY ranges currently advertised for popular terms, based on Bankrate, NerdWallet, and Wall Street Journal rate roundups from early October 2026:

CD term	Top APY range (Oct 2026)	National average APY*
6 months	4.30% – 4.50%	n/a
1 year	4.30% – 4.60%	2.12%
3 years	4.40% – 5.05%	1.74%
5 years	4.35% – 5.20%	1.79%

*National averages from Bankrate’s survey, October 3, 2026 (a 6-month national average was not published). Top ranges reflect the highest nationally available yields reported by Bankrate, NerdWallet, and the Wall Street Journal in early October 2026. Rates change frequently — always confirm on the institution’s official site before opening an account.

Five Competitive CD Providers to Compare

Online banks and select credit unions consistently pay the highest CD rates because they operate without expensive branch networks. Here are five widely available providers with competitive lineups this month. Rates below were reported in early October 2026 and will change:

1. Raymond James Bank

• Standout rates: 5.20% APY on a 60-month CD; 4.60% on 12-month; 4.90% on 18-month; 4.98% on 24-month; 5.05% on 36-month (Wall Street Journal, October 2, 2026).
• Minimum deposit: $1,000 to earn the stated APY.
• Good to know: Currently the highest nationally available 5-year yield in major rate roundups — a strong pick for locking in a rate long-term.

2. Popular Direct

• Standout rates: 4.40% APY on a 1-year CD, 4.80% on 3-year, and 4.95% on 5-year (NerdWallet/Bankrate, October 2026).
• Minimum deposit: $10,000 — geared toward savers with larger balances.
• Good to know: Offers eight CD terms from three months to five years, which works well for ladder strategies.

3. Synchrony Bank

• Standout rates: 4.50% APY on a 5-year CD (Bankrate, as of October 4, 2026); competitive rates across terms from three months to five years.
• Minimum deposit: $0 — no minimum to open.
• Good to know: Also offers bump-up CDs (one rate increase during the term) and IRA CDs, useful if you think rates might rise.

4. Capital One

• Standout rates: 4.00% APY on a 1-year CD, 3.30% on 6-month, and 3.60% on 5-year (October 3, 2026 data).
• Minimum deposit: $0.
• Good to know: A familiar national brand with no minimums; rates trail the very top of the market but the account experience is polished.

5. Marcus by Goldman Sachs

• Standout rates: 4.40% APY on a 1-year CD; 5-year CDs around 4.35% (October 2026).
• Minimum deposit: $500 on many terms.
• Good to know: Offers no-penalty CDs (withdraw the full balance after a brief holding period with no fee) and a 10-day rate guarantee — if the rate rises within 10 days of opening, you get the higher one.

How a CD Ladder Works

If you do not want to bet on where rates are headed, a CD ladder spreads your money across several CDs with staggered maturities. Here is a simple example with $20,000:

• Put $5,000 each into 1-year, 2-year, 3-year, and 4-year CDs.
• When the 1-year CD matures, reinvest it into a new 4-year CD at the prevailing rate.
• Repeat each year. After four years, you hold four 4-year CDs maturing one year apart.

The ladder gives you two advantages: part of your money frees up every year (liquidity), while most of it still earns long-term rates (yield). If rates rise, maturing rungs get reinvested at the new higher rates; if rates fall, most of your money is already locked in. It is the standard strategy for uncertain rate environments — which describes 2026 well.

Early Withdrawal Penalties: What They Cost

The trade-off with CDs is the early withdrawal penalty. Pull money out before maturity and the bank typically forfeits a set amount of interest — commonly 90 days’ interest on CDs of one year or less, and 180 to 270 days’ interest on longer terms. For example, Bankrate notes E*TRADE charges 270 days’ interest on its three-year CD.

Two things to know. First, if you have not earned enough interest to cover the penalty, the bank can take the remainder from your principal — the rare case where a CD can “lose” money. Second, most CDs include a grace period (usually 7–10 days) at maturity when you can withdraw or change terms penalty-free; if you do nothing, many banks automatically renew into a new CD at the current rate. Mark your maturity dates so a renewal does not lock you into a rate you did not choose.

If flexibility matters more than the absolute highest yield, consider a no-penalty CD (offered by Marcus, Ally, and others): you can withdraw the full balance after a brief initial period with no fee, at the cost of a slightly lower APY.

Frequently Asked Questions

Are CDs safe?

Yes. CDs from banks are insured by the FDIC, and those from credit unions by the NCUA, up to $250,000 per depositor, per institution, per ownership category. As long as you stay within those limits and hold to maturity, your principal and promised interest are guaranteed.

Are CD rates going up or down?

Down from their peak, broadly. Top CD yields hit their high in late 2023, then eased as the Federal Reserve cut its benchmark rate three times in late 2025. Through 2026 the Fed has held rates steady while competitive CD yields inched lower. With inflation around 3.4% annually as of mid-2026 (per Bankrate), locking in 4–5% APY still protects purchasing power — but waiting for higher rates has been a losing bet for two years.

CD or high-yield savings account?

A high-yield savings account keeps your money liquid and its rate floats with the market; top online savings accounts pay roughly 3–4% APY in October 2026. A CD locks your rate for the term, which wins if rates fall — but costs you flexibility. Many savers hold both: savings for the emergency fund, CDs for money with a known time horizon.

Do I pay taxes on CD interest?

Yes. CD interest is taxed as ordinary income in the year it is credited, even if you leave it in the CD. Your bank will send a Form 1099-INT if you earn $10 or more. Interest in a CD held inside an IRA follows IRA tax rules instead.

A Note on Rates and Advice

CD rates change frequently — sometimes daily — and can vary by region, balance tier, and promotional period. Every rate in this article reflects figures published by Bankrate, NerdWallet, the Wall Street Journal, or the institutions themselves in early October 2026; always verify the current APY, minimum deposit, and early withdrawal penalty on the bank’s official website before opening an account. This article is for informational purposes only and is not financial advice. Consider speaking with a qualified financial professional about what is right for your situation.

Last updated: October 2026.