By Jozsef Huszar • Updated: October 9, 2026

Looking for the best CD rates? See today’s top CD APYs, early withdrawal penalties and real dollar returns side by side, so you can lock the right rate for the right term.

Rates in this article were reviewed in early October 2026 and change often. A CD locks its rate for the whole term, so the rate you see on the day you open and fund the account is the one that counts. Always confirm the current APY, minimum, and penalty on the bank’s own page before opening an account.

Current CD Rates: Market Snapshot

On September 16, 2026, the Federal Reserve raised its target range for the federal funds rate by a quarter point, to 3.75%–4.00%. It was the first hike since 2023. Banks do not price CDs off that number directly, but the two move together, and listings in early October show the best nationally available 12-month CDs at roughly 4.15%–4.45% APY. Short-term CDs of six to 12 months generally sit around 4%.

Compare that with the FDIC’s national average for CDs, which was quoted at 1.73% for a 12-month term in early October, 1.61% for 24 months, and 1.38% for 60 months. The FDIC figure covers all insured banks, including the large traditional ones where most money sits, so it reflects the average account, not the best offer.

The gap is wide, and the curve is flat. At Marcus by Goldman Sachs, for example, the APY is 4.40% on every term from 12 months to six years. That means a longer term costs nothing in yield but removes your access to the money. The practical questions are no longer “CD or traditional savings?” but “how long can I leave this money alone, and what happens if I need it early?”

One caution on headlines. Some listings show rates of 5% to 9% on credit-union CDs, but these are typically capped (for instance, a 9.00% nine-month certificate limited to $1,000 balances) or require membership. They are NCUA-insured rather than FDIC-insured and are not comparable with the nationally available bank CDs below, so they are left out of the table.

Sources: Federal Reserve, FOMC statement, September 16, 2026; FDIC, National Rates and Rate Caps, as quoted by Yahoo Finance on October 5, 2026; Yahoo Finance, “Best CD rates today” (October 5–8, 2026); CD Valet and WalletHub (October 2026) for credit-union offers; accessed October __, 2026.

Best CD Rates Compared: Current Account Comparison

The table is ranked by 12-month APY, the most common comparison point. It covers standard fixed-rate CDs only, not no-penalty, bump-up, or promotional certificates (those are covered later in this guide).

Account	12-month APY	Other terms listed	Minimum to open	Early withdrawal penalty	Key note
Barclays Online CD	4.50% (reported, conflicting)	Not captured	$0	To confirm	One listing says 4.50%, its own headline says up to 4.35%; verify
Marcus High-Yield CD	4.40%	6-mo 3.95%; 9-mo 4.30%; 18-mo to 6-yr 4.40%	$500	Yes; 90 days’ interest on terms of 1 year or less, as reported	10-day rate guarantee; read on bank’s own page
E*TRADE CD (Morgan Stanley)	4.40%	Not captured	To confirm	To confirm	Single listing
Bask Bank CD	4.35%	Not captured	$1,000	To confirm	Division of Texas Capital Bank
Live Oak Bank CD	4.30%	Not captured	$2,500	To confirm	Highest minimum of the group
Bread Savings CD	4.25%	18-mo 4.50%; 5-yr 4.50%	To confirm	To confirm	Longer terms pay more
Citi CD	4.25%	Not captured	To confirm	To confirm	Check eligibility
Synchrony CD	4.20%	5-yr 4.50%	$0	90 days (12 mo or less); 180 days (over 12 to under 48 mo); 365 days (48 mo or more)	Interest can be withdrawn during the term
Ally High Yield CD	4.15%	11-mo no-penalty and 2- and 4-yr Raise Your Rate CDs also offered	$0	60 days (3–24 mo); 90 days (25–36 mo); 150 days (49 mo or more)	APY depends on opening deposit tier
Capital One 360 CD	4.00%	Not captured	$0	3 to 6 months’ interest, as reported	Large-brand benchmark
American Express CD	3.65%	Not captured	$0	To confirm	Large-brand benchmark
Popular Direct CD	Not captured	3-yr 4.85%; 5-yr 5.00%	To confirm	To confirm	Single-source long-term rates

Source: bank rate pages (accessed October __, 2026). Marcus figures, and the minimum and penalty figures for Synchrony and Ally, are from the banks’ own pages (October 9, 2026). Other candidate accounts and rates first identified in listings from Yahoo Finance (Oct. 2026), NerdWallet (Oct. 2026), and WalletHub (Oct. 2026). APYs are fixed for the term once you open and fund the CD, but the rate on offer changes often.

FDIC status (confirm each in FDIC BankFind before publishing): none of the listed banks is outside FDIC coverage. Barclays: Barclays Bank Delaware. Marcus: Goldman Sachs Bank USA, Salt Lake City Branch (Member FDIC, per its page). ETRADE: a Morgan Stanley bank (issuer name to confirm). Bask Bank: division of Texas Capital Bank (Member FDIC, per NerdWallet). Live Oak: Live Oak Bank. Bread Savings: issuing bank to confirm. Citi: Citibank, N.A. Synchrony: Synchrony Bank (Member FDIC, per its page). Ally: Ally Bank (Member FDIC, per its page). Capital One 360: Capital One, N.A. American Express: American Express National Bank. Popular Direct: Popular Bank. Credit unions are insured by the NCUA, not the FDIC, and are not in this table.

12-Month CD Rates: What the Numbers Mean in Dollars

APY already includes compounding. For a 12-month CD, interest over the term is simply balance × APY. For longer terms, interest over the term is balance × ((1 + APY)^(years) − 1), assuming interest stays in the CD. Here is what a 12-month CD pays before taxes.

Balance	1.73% (national avg.)	3.65%	4.00%	4.25%	4.40%
$1,000	$17.30	$36.50	$40.00	$42.50	$44.00
$5,000	$86.50	$182.50	$200.00	$212.50	$220.00
$25,000	$432.50	$912.50	$1,000.00	$1,062.50	$1,100.00
$100,000	$1,730.00	$3,650.00	$4,000.00	$4,250.00	$4,400.00

Over a longer term, compounding adds up. Here is the total interest over five years if interest stays in the CD.

Balance	1.38% (national avg., 60 mo)	4.40% (Marcus 5-yr)	4.50% (Synchrony and Bread 5-yr, as listed)
$1,000	$70.93	$240.23	$246.18
$5,000	$354.65	$1,201.15	$1,230.91
$25,000	$1,773.27	$6,005.77	$6,154.55
$100,000	$7,093.08	$24,023.07	$24,618.19

Two patterns stand out. First, moving from the national average to any competitive CD is worth far more than choosing among the competitive ones. At $25,000, the jump from 1.73% to 4.40% is about $667.50 in the first year. The difference between 4.20% and 4.40% is $50.

Second, small gaps matter more as balances and terms grow. A 0.10 percentage-point difference is $1 on $1,000 for a year but $100 on $100,000. Over five years, 4.50% versus 4.40% on $25,000 is about $149. The right level of effort depends on your balance, not on how exciting the rate looks.

Interest is also taxable as ordinary income at the federal level, and banks generally report it on Form 1099-INT. At an assumed 24% federal marginal rate, $1,100 of interest leaves about $836 after federal tax. For multi-year CDs, interest is generally taxable each year it is credited, even if you leave it in the CD.

Source: calculations based on listed APYs; FDIC national average CD rates as quoted by Yahoo Finance on October 5, 2026; tax treatment per IRS Topic No. 403, Interest Received.

CD Early Withdrawal Penalties, Fees and Requirements

Ally and Synchrony state that they charge no monthly maintenance fee on CDs, and the same is typical for online banks, so the cost of a CD is mostly about access. Several things matter more than the headline APY.

Early Withdrawal Penalties

Every standard CD charges a penalty if you take money out before maturity, usually expressed as days of interest. They vary a lot. Ally’s schedule runs from 60 days of interest on 3-to-24-month CDs up to 150 days on terms of 49 months or more. Synchrony charges 90 days of simple interest on 12-month-or-shorter terms, 180 days on terms over 12 and under 48 months, and 365 days on terms of 48 months or more. At Marcus, NerdWallet reports 90 days of interest on terms of one year or less. As a rough guide, 90 days of interest on $25,000 at 4.20% is about $259. At Ally, the penalty is taken from accrued interest first and then, if necessary, from principal, so a withdrawal very early in a CD’s life can cost you part of your original deposit.

Minimums and Access

Several of the best rates require a deposit: $500 at Marcus, $1,000 at Bask, $2,500 at Live Oak. Ally, Synchrony, Capital One, and American Express list no minimum. Most CDs do not allow additional deposits during the term. Ally and Synchrony both limit adding funds to the grace period after maturity, and Synchrony lets you withdraw interest during the term without penalty.

Rate Tiers and Guarantees

Ally says the APY it pays is based on your opening deposit amount, so the rate you see may differ from the rate you get. Marcus offers a 10-day rate guarantee: if the rate on your term rises within 10 days of opening and you fund at least $500, you get the higher rate.

Renewal

Most CDs renew automatically into a new term at whatever rate the bank is then offering, which may be lower. Ally gives a 10-day grace period after maturity, and Marcus lets you change your maturity plan up to the evening before maturity. Put the maturity date in your calendar.

Specialty CDs

If you want flexibility, no-penalty and bump-up CDs exist, at lower starting rates. As reported by NerdWallet on October 1, Marcus offers an 11-month no-penalty CD at 4.00% and a 20-month Rate Bump CD at 4.35%; Ally offers an 11-month No Penalty CD and 2- and 4-year Raise Your Rate CDs. Fed officials’ September projections point to one more hike this year (per Yahoo Finance), so a bump-up CD can make sense, but you must request the bump yourself.

FDIC Insurance

Finally, confirm insurance. Standard FDIC coverage is $250,000 per depositor, per insured bank, per ownership category. Marcus also notes that maximum balance limits apply, so check them if you plan a large deposit.

Sources: bank pages and account agreements (accessed October __, 2026); NerdWallet, Marcus CD Rates (October 2026); FDIC, Your Insured Deposits.

Account-by-Account Analysis

Marcus High-Yield CD

The most transparent ladder in this group, read directly on the bank’s own page: 3.95% at six months, 4.30% at nine months, and 4.40% from 12 months through six years, with a $500 minimum. The flat curve means you can pick a term by how long you can leave the money, not by chasing yield. Check the early withdrawal wording before opening.

Barclays Online CD

Listed with a $0 minimum and a 12-month rate that could top this group at 4.50%, but sources conflict, and Barclays’ own page could not be read. Treat it as a candidate until you see the rate yourself.

Synchrony CD

No minimum, no monthly fees, a wide range of terms, and a 5-year rate listed at 4.50%, which is higher than its 12-month 4.20%. The 365-day penalty on terms of 48 months or more is the price of that longer-term rate.

Ally High Yield CD

No minimum, a clear penalty schedule, and a 0.05% loyalty reward on renewal. Its 12-month rate is listed at 4.15%, a little behind the leaders, and the APY depends on the amount you deposit. A fit if you already bank at Ally and want everything in one login.

Bask Bank CD

A 4.35% listing with a $1,000 minimum. It is the online division of Texas Capital Bank. Close to Marcus on rate, with a higher entry point.

Bread Savings CD

A reported 4.25% at 12 months, with 4.50% listed at 18 months and five years. The minimum and issuing bank were not captured, so check both.

E*TRADE CD (Morgan Stanley)

A 4.40% listing at 12 months, matching Marcus. Check whether an E*TRADE brokerage account is required.

Citi CD

Listed at 4.25%. Check whether the rate is available to everyone or only to existing Citi customers.

Live Oak Bank CD

A 4.30% listing with the highest minimum ($2,500). Worth it only if you have the deposit and the rate holds.

Capital One 360 CD and American Express CD

At 4.00% and 3.65%, they trail the leaders by 0.40 to 0.75 points. Their case rests on convenience: an established brand, one login, and no minimum.

Popular Direct CD

A single listing shows 4.85% on a 3-year and 5.00% on a 5-year, which would be the highest bank rates here. Because it rests on one source, verify it before relying on it.

Who Each CD Account Fits

Situation	Best fit for	Worth considering if	Less suitable if
Money needed in 6–12 months	Short standard CDs (Marcus, Synchrony, Bask)	You know the exact date you need the cash	You might need it sooner
Emergency fund	Usually a savings account, not a CD	You hold a CD only for the part you will not need	You cannot absorb a penalty
Cash you will not touch for 3–5 years	Longer-term standard CDs (Marcus, Synchrony, Bread)	You want today’s rate locked	You expect to need the money or want higher future rates
Expecting rates to rise further	Bump-up or no-penalty CDs (Marcus, Ally)	You will track rates and request the bump	You prefer a set-and-forget account
Building a ladder	Several terms at one bank (Marcus)	You want staggered maturities	You have a small balance and minimums matter
Prefers a familiar brand	Large banks (Ally, Capital One, Amex)	Convenience is worth about 0.25–0.75 points	Maximizing yield is the priority

Real-World CD Scenarios

$1,000 Starter CD

The gap between 4.00% and 4.40% is $4 a year. Pick the account with the simplest setup and no minimum problems; many of the best rates need $500 or more anyway, so a no-minimum account may be the practical choice.

$5,000 for a Known 12-Month Goal

At 4.40% you earn $220 versus $200 at 4.00% and $182.50 at 3.65%. Between the leaders at 4.40% and 4.35%, the gap is $2.50. Choose on minimum, penalty, and convenience.

$25,000 Held for a Year

The difference between a 3.65% account and a 4.40% account is $187.50. After a 24% federal tax rate, that is about $142.50. This is the balance where shopping around clearly pays.

$100,000 Home Down Payment in 12–24 Months

At 4.40%, a 12-month CD earns $4,400 before taxes. A longer term only helps if you will not need the money early; an early withdrawal at 90 days of interest on 4.40% costs about $1,085. Because FDIC coverage is $250,000 per bank, you are within standard limits, but check any maximum balance limit before depositing.

A Simple CD Ladder

With $25,000 you could place $5,000 each in 6-, 9-, 12-, 18-, and 24-month CDs. At Marcus, that gives you 3.95%, 4.30%, and 4.40% on the first three rungs and 4.40% on the others, with a maturity every few months. When a rung matures, you can reinvest at the then-current rate.

Head-to-Head CD Comparisons

Marcus (4.40%) vs. Synchrony (4.20%), 12 Months

The 0.20-point gap is $10 on $5,000 and $50 on $25,000. Synchrony has no minimum; Marcus requires $500. If you have the deposit, Marcus pays more. Both charge 90 days of interest on a 12-month early withdrawal, per the sources above.

Marcus (4.40%) vs. Bask (4.35%), 12 Months

The gap is $2.50 on $5,000. Choose on minimum ($500 versus $1,000) and which bank you prefer, not yield.

Marcus (4.40%) vs. Ally (4.15%), 12 Months

The gap is $12.50 on $5,000 and $62.50 on $25,000. Ally’s advantages are no minimum, one login, and the renewal reward, and its APY may rise with a larger deposit.

Synchrony 5-Year (4.50%) vs. Marcus 5-Year (4.40%)

On $25,000, the extra 0.10 points is about $149 over five years. But Synchrony’s penalty on terms of 48 months or more is 365 days of interest, so the extra yield is thin cover if you need to leave early. Bread’s listed 4.50% five-year rate is similar, with its penalty still to confirm.

Marcus 12-Month CD (4.40%) vs. a Top Savings Account (4.27%)

In our high-yield savings comparison, the highest standard savings rate reported was 4.27%. On $5,000, the CD earns $6.50 more over a year; on $25,000, about $32.50. The savings rate is variable and can rise or fall; the CD is locked. If rates keep rising, a savings account may catch up and pass the CD. If rates fall, the CD keeps paying 4.40%. For money you need to keep available, the small yield advantage rarely justifies the penalty risk.

Large Brands vs. Marcus (4.40%)

Capital One (4.00%) and American Express (3.65%) trail Marcus by $20 and $37.50 on $5,000, and by $100 and $187.50 on $25,000. At $5,000 or less, convenience can reasonably win. At $25,000 or more, the dollars start to matter.

Practical Checklist Before You Open a CD

• Read the APY on the bank’s own page, and note the date. The rate is locked when the CD is opened and funded.
• Confirm the bank in FDIC BankFind (or the credit union in NCUA’s lookup).
• Check the minimum to open, whether you can add funds, and any maximum balance limit.
• Find the early withdrawal penalty for your exact term, and estimate it in dollars.
• Find out what happens at maturity: the grace period, whether the CD auto-renews, and at what rate.
• Match the term to a date you actually need the money, and leave your emergency fund in an accessible account.
• Consider a ladder instead of one large CD if you want access at several dates.
• Estimate the real gain: (new APY − current APY) × your balance × years, and note that interest is taxable each year.

Bottom Line: Choosing the Best CD Rate

Moving from the national average CD rate (about 1.73% for 12 months) to a competitive CD at roughly 4.00%–4.50% is the largest improvement available. Moving between competitive CDs is a smaller one.

The curve is flat at the best banks, so a longer term rarely pays a premium. Choose the term by when you need the money, and weigh the early-withdrawal penalty, which grows with the term.

At $5,000 or less, a gap of 0.05–0.25 points is worth only $2.50–$12.50 a year. Choose on minimum, penalty, and convenience.

At $25,000 or more, gaps of 0.40 points or more are worth $100 or more a year, and effort pays off.

CD rates are fixed once you open and fund the account, but offers change often and just moved up with the Fed. Treat any listed APY as a snapshot, and confirm it on the bank’s page.

This article is for educational purposes only and is not financial advice. Rates, terms, and offers are subject to change; confirm all details with the institution.

Sources

• Federal Reserve Board, “Federal Reserve issues FOMC statement,” September 16, 2026 (federalreserve.gov/newsevents/pressreleases/monetary20260916a.htm).
• Federal Deposit Insurance Corporation, National Rates and Rate Caps (savings and CD national rates), as quoted by Yahoo Finance, October 5, 2026 (fdic.gov).
• FDIC, Deposit Insurance and BankFind (fdic.gov; bankfind.fdic.gov).
• Internal Revenue Service, Topic No. 403, Interest Received (irs.gov/taxtopics/tc403).
• Marcus by Goldman Sachs, High-Yield CDs, rates as of October 8, 2026 (marcus.com/us/en/savings/high-yield-cds).
• Ally Bank, High Yield CD page and early withdrawal schedule, accessed October 9, 2026 (ally.com/bank/high-yield-cd/).
• Synchrony Bank, Certificate of Deposit page and early withdrawal FAQ, accessed October 9, 2026 (synchrony.com/banking/products/cd).
• Bank rate pages and fee schedules for each other institution named (accessed October __, 2026).
• Rate listings used to identify candidate accounts: Yahoo Finance, “Best CD rates today” (Oct. 5–8, 2026) and “Best 1-year CD rates” (Oct. 2026); NerdWallet, best 1-year and 5-year CD rates and Marcus CD review (Oct. 2026); WalletHub, best CD rates (Oct. 2026); CD Valet (Oct. 5, 2026).