Discover which financial institutions currently offer the most competitive CD rates. If you’re seeking a safe place to grow your savings, a certificate of deposit (CD) can be an excellent option. CDs typically provide higher interest returns than standard checking and savings accounts, though rates can vary significantly.
Explore the latest CD rate landscape and learn how to pinpoint the most advantageous offers available today.
Banks with the best CD rates today
While CD rates remain above historical averages, they have trended downward since the Federal Reserve began reducing its target rate last year. Nonetheless, many institutions—especially online banks—continue to offer competitive rates of 4% APY and higher.
The current leading CD rate is 4% APY, available through select digital banks offering 14‑month terms.
Below, we outline some of the top CD rates available today from our vetted partners.
CD rate predictions for 2026
The Federal Reserve’s gradual reduction of the federal funds rate—driven by modest inflation and an improving economic outlook—has been a key factor in recent CD rate movements. In late 2024, the Fed cut its target rate three times, totaling one percentage point.
In December, the Fed announced its third 2025 rate cut. While further cuts in 2026 appear unlikely, the Fed has maintained rates unchanged so far this year, and a modest increase could materialize before year end.
Because the federal funds rate influences but does not dictate deposit rates, a move toward lower Fed rates typically leads banks to reduce CD yields. As a result, current CD rates are trending downward, suggesting that locking in today’s best offers could still be advantageous.
How to open a CD
Opening a CD account involves several standard steps that vary slightly between institutions. Below are the core actions you can expect to take:
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Research CD rates: Compare rates across banks to find the most favorable offer.
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Choose a suitable account: Beyond the interest rate, assess the term length, minimum deposit, and any fees to ensure the CD aligns with your goals. Avoid very long terms if early access might be needed.
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Gather required documents: Provide identification such as your Social Security number, address, and a government‑issued ID (driver’s license or passport).
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Complete the application: Submit the application online or in‑person, depending on the institution. Most approvals are immediate.
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Fund the account: Transfer funds from an existing account or mail a check to activate the CD.
Read more: Step‑by‑step instructions for opening a CD.
