Certificates of deposit , or CDs, pay a fixed interest rate over a set term which can range from a few months to more than a decade. You get the principal back when the term expires, along with the accrued interest.
CNBC Select has listed the financial institutions with the best CD rates as of the time of publication, including options for no-penalty CDs.
CDs and rates are accurate as of Nov. 1, 2026. For more on how we made our selections, see our methodology .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
6 months to 60 months, plus add-on and bump-up CDs
Read our Ally Bank High Yield CD review .
At its Sept. 16 meeting, the Fed instituted its first rate hike since July 2023. Higher interest rates often put upward pressure on CD yields, although the timing and magnitude of any changes depend on how individual institutions respond.
While there are some outliers, the best CD rates currently range roughly from 4.00% to 4.50% APY, depending on the term, deposit amount and institution, with the most competitive yields often available from online banks and credit unions.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Bread Savings™ (formerly Comenity Direct) is a product of Comenity Capital Bank, a Member FDIC.
Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA, a Member FDIC.
A certificate of deposit , or CD, is a type of savings account offered by banks and credit unions that pays a fixed interest rate for a set period of time. CD terms usually range from three months to 10 years, though some institutions offer terms of 20 years or longer. In most cases, you can't access the funds before the CD matures without paying an early withdrawal penalty. Since they're insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, CDs are considered a safe financial product. If you open a CD with a credit union, it's insured by the National Credit Union Administration for the same amount.
While similar to a savings account , a traditional CD differs in several important ways:
Choosing a CD comes down to understanding when you'll need your money, how much flexibility you want and which features matter most to you.
Banks tend to offer several types of CDs, each designed for specific needs and limitations. Here's how they vary:
CDs are a good fit if you want a guaranteed return on your money and are comfortable not having access to it for months or even years.
Because the money is safely locked away, they work especially well if you have a specific savings goal, like a down payment on a house, a remodeling project or a vacation.
If a CD's fixed term or limited access doesn't suit you, you can consider these alternatives:
Traditional CDs have benefits and drawbacks.
A CD rate is the interest percentage a bank pays you for depositing funds for a specific term. Because you're not withdrawing from the account, the rate is usually higher than that of regular savings accounts. CD rates are fixed, meaning they remain the same until the CD matures.
A good CD rate depends on the term length. Currently, the highest rates are for shorter-term CDs (6 to 18 months), which are hovering around 4.10% APY.
Because most CDs are FDIC-insured, your money is guaranteed up to $250,000 per account holder. However, you can lose interest if you withdraw funds before your CD matures. In addition, the value of a brokered CD can drop below the purchase price if it's sold on the secondary market before maturity.
CDs are generally a good investment because your money grows without the risk of a rate drop or a turn in the stock market .
How much a CD earns in a year depends on its APY. A one-year $10,000 CD with a 5.00% APY would yield $500 in interest.
CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. If you open a CD with a credit union, it's insured by the National Credit Union Administration for the same amount.
At CNBC Select , our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every CD list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking and savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
The CNBC Select Recommends newsletter delivers practical money tips each week along with expert-picked financial product recommendations. Sign up here .
To determine which CDs offer the best return, CNBC Select analyzed more than 45 banks, credit unions and online financial institutions offering certificates of deposit.
We evaluated each account using the following criteria:
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Because CD rates change frequently, our rankings are reviewed and updated regularly to reflect the most competitive offers currently available
Catch up on CNBC Select's in-depth coverage of credit cards , banking and money , and follow us on TikTok , Facebook , Instagram and Twitter to stay up to date.
