Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS. For instance, a CD customer with a multiyear CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.

Are there fees associated with CDs?

CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.

Is an online bank the best choice for a CD?

Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.

How long can you leave money in a CD?

You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.

Can you lose money on a CD?

The money in your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within the established limits and guidelines. You won’t lose money with a CD unless your early withdrawal penalty cuts into your principal, which could happen if the penalty is steep.

Best CD rates of September 2026 (Up to 4.60%)

Written by

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Reviewed by

Expert verified

Updated September 28, 2026

At Bankrate we strive to help you make smarter financial decisions. Though our partners compensate us from links on this page, we maintain editorial integrity, and partners don't influence our product evaluations. Here's how we make money and here is our advertiser disclosure.

Opening a certificate of deposit (CD) allows you to lock in an attractive fixed rate and earn higher returns compared to traditional savings accounts, while providing guaranteed growth for a set period. Currently, the best CD rates still earn around 4% APY and are highest on short-term CDs. The top rate tracked by Bankrate's editorial team is 4.60% offered by First National Bank of America.

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See how we pick our picks: Read our Best CD rates research methodology

Table of contents

Recent news on CD rates
How to choose the best CD for you
Compare top CD rates today by term
Pros and cons of CDs
Types of CDs
Alternatives to CDs
CD FAQs
How to use CDs to prepare for your next big purchase
Research methodology

Recent news on CD rates

CD rates remain high, for now. The highest CD rates right now, according to Bankrate’s analysis, are mostly found on short-term CDs of five months to twelve months. Unfortunately, with inflation sitting at 3.4% on an annual basis as of July, that doesn't mean as much as it used to. Right now you can protect your purchasing power by storing your savings, but inflation has outpaced CD rates in the recent past.

CD rates have been trending downward since late 2023, which was the peak of the current rate cycle. That’s because CD rates at least partially respond to moves that the Federal Reserve makes with the benchmark federal funds rate.

They began to move downward in earnest after the Fed cut rate cuts three times in late 2025. In 2026 so far, the Fed has kept the fed funds rate steady, but competitive CD rates have still inched down, slowly.

Learn more: CD rate forecast for 2026

How to choose the best CD for you

When choosing a CD, find the highest APY for the term that you need for your financial goals. You also want to consider the early withdrawal penalty so you know what’ll happen in the worst-case scenario if you need to pull your money out early.

Do the math before you commit

Even though the rate on a short-term CD may be higher than a long-term one, you’ll earn more in a longer-term CD because you’re letting the compound interest accrue longer.

Compare top CD rates today by term

Here’s where you’ll find some of the top-yielding CDs by term.

Institution	APY	Min. deposit
Bask Bank	4.10% APY	$1,000
WebBank	3.96% APY	$2,500
Popular Direct	3.95% APY	$10,000

Institution	APY	Min. deposit
Quorum Federal Credit Union	4.30% APY	$100
E*TRADE	4.20% APY	No minimum
Happen Bank	4.20% APY	$500

Institution	APY	Min. deposit
BTG Pactual Bank	4.45% APY	$500
E*TRADE	4.35% APY	No minimum
CIBC Bank USA	4.35% APY	$1,000

Institution	APY	Min. deposit
Popular Direct	4.50% APY	$10,000
BTG Pactual Bank	4.47% APY	$500
Sallie Mae	4.45% APY	$2,500

Institution	APY	Min. deposit
BTG Pactual Bank	4.50% APY	$500
Bread Savings	4.50% APY	$1,500
Sallie Mae	4.50% APY	$2,500

Note: Annual percentage yields (APYs) shown were updated between Sept. 21 and Sept. 27. Bankrate's editorial team validates this information regularly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Your CD can beat the average interest rates for CDs

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average. Here are the current average rates as of Sep 28, according to Bankrate's most recent survey of institutions:

CD term	CD national average APY
1 year	2.08%
2 year	1.83%
3 year	1.71%
4 year	1.86%
5 year	1.77%

Bankrate made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.

Expert Insight

National CD APY averages are less than half of some top online banks and credit unions. Getting a great rate doesn't take more than a quick shop around with the knowledge that top rates currently sit around 4%. Big banks rely on the convenience of keeping your money all in one place, but an online bank or credit union will likely give you a much better rate for a little more effort.

Rhys Subitch

Editor, Deposits

Pros and cons of CDs

Pros

Guaranteed rate.
Potentially higher APY than other savings products.
A helpful barrier between you and your savings for future expenses.
Federally insured, up to a limit.

Cons

There is usually a penalty to access to your money.
Risk of rates rising during your CD term.
You usually can’t add funds over time.
Potentially better returns in the stock market but with a lot more risk.

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Traditional CDs are the most common type of CD. They earn a fixed APY for the entire term and don’t allow you to add more funds after your opening deposit.

They also charge you an early withdrawal penalty for taking your money out before the CD matures.

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money, and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

No-penalty CDs — also known as liquid CDs — allow you to withdraw your money early without being charged a penalty.

No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility just in case.

Bump-up CDs allow you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

Alternatives to CDs

High-yield savings account

These accounts pay rates that are on par with many of the best CDs but give you easier access to your savings.

Money market account

This is an interest-bearing account that’s similar to a savings account but also offers some checking account features.

CD FAQs

Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS.

For instance, a CD customer with a multiyear CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.
CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.
Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.
You can keep your money in a CD and generally let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.
The money in your CD is safe at either an FDIC-insured bank or a credit union insured by the National Credit Union Share Insurance Fund (NCUSIF), as long as the amount of money in the account is within the established limits and guidelines.

You won’t lose money with a CD unless your early withdrawal penalty cuts into your principal, which could happen if the penalty is steep.

How to use CDs to prepare for your next big purchase

Use a CD to save for a down payment

And learn about other ways to save toward a house

Father holding his baby child while working on financial documents

Build a CD ladder

Learn how to use a CD ladder for short- and long-term investing

Bankrate's CD calculator

Calculate your potential earnings with our CD calculator

Find the best jumbo CD rates

If you have a lot saved toward a downpayment, you could find higher CD rates with a jumbo CD

Meet our Bankrate experts

Written by

Matthew Goldberg Matthew Goldberg

Former Senior Consumer Banking Reporter

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best CD rates, we regularly survey CD offerings from the banks and credit unions that continually offer the most competitive CD rates. We also score these institutions on their CD offerings, including APY, minimum deposit requirements, term selection and more. Banks and credit unions receive penalties against their overall scores for each consent decree, penalty in a case brought by a federal regulator or in a certified, federal class-action lawsuit, or adverse federal judgment for harming deposits customers.

The banks and credit unions on this page are selected based on their CD APYs, minimum opening deposit requirements and Bankrate’s score for their CDs. Only banks and credit unions with broadly available CD offerings made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.

Affinity Federal Credit Union, Alaska USA FCU, Albert, Alliant Credit Union, Ally Bank, Alto, Amalgamated Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Applied Bank, Armed Forces Bank, N.A., Axos, Axos Bank, b1BANK, Banesco USA, Banesco USA, Bank of America, Bank of Hope, Bank of the West, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, Brilliant Bank, BrioDirect, BrioDirect, BrixDirect, BTG Pactual, Burke & Herbert Bank & Trust Company, Capital One, Cash App, CFBank, CFG Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Credit One Bank, NA, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, DollarSavingsDirect, E*TRADE from Morgan Stanley, East West Bank, Emigrant Bank, Emigrant Direct Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Foundation Bank, First Horizon Bank, First Internet Bank, First National Bank of America, First Tech Credit Union, Flynn Wright on behalf of Veridian Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, GTE Financial Credit Union, Heritage Bank, Heritage Bank, NA, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, KS StateBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, LendingClub Bank, Liberty Savings Bank, Limelight Bank, Limelight Bank, Live Oak Bank, Lone Star Bank, M&T Bank, Malaga Bank F.S.B., Marcus by Goldman Sachs, Merrick Bank, MidFirst Bank - Los Angeles, Monifi, Mountain America Credit Union, mph.bank, My Banking Direct, a service of NY Community Bank, MyBankingDirect, MySavingsDirect, NASB, Navy Federal Credit Union, NBKC Bank, NexBank SSB, NexBank, SSB, North American Savings Bank, Northpointe Bank, Oak Valley Community Bank, One, OneUnited Bank, Openbank, Patelco Credit Union, Peak Bank, Pendleton Community Bank, Inc., Pentagon Federal Credit Union, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Primis Bank, Provident Bank, PurePoint Financial, Quontic Bank, Quontic Bank, Quorum, Quorum Federal Credit Union, Radius Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Republic Bank of Chicago, Ridgewood Savings Bank, Rising Bank, Rising Bank , Salem Five Direct, Sallie Mae Bank, San Diego County Credit Union, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Simple, SoFi, SouthState Bank, St. Anne's Credit Union, Star One Credit Union, State Bank of India California, State Employees' Credit Union, Sterling Bank and Trust, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, TotalDirectBank, Truist Bank, U.S. Bank, UFB Direct, UFB Direct, Umpqua Bank, Union Bank, Union Bank (Michigan), Universal Bank, Upgrade, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VirtualBank, VyStar Credit Union, Washington Savings Bank, Wealthfront, WebBank, Webster Bank, Wells Fargo, Western Alliance Bank-501, Western State Bank, Zions Bank, ZYNLO Bank

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Best CD rates of September 2026 (Up to 4.60%)

CD rates today

Calculate your savings in seconds

How Bankrate works

How Bankrate works

Compare rates

Choose an account

Continue to the bank

Recent news on CD rates

How to choose the best CD for you

Compare top CD rates today by term

Your CD can beat the average interest rates for CDs

How Bankrate calculates the national average

Expert Insight

Pros and cons of CDs

Pros

Cons

Types of CDs

Alternatives to CDs

CD FAQs

How are CDs taxed?

Are there fees associated with CDs?

Is an online bank the best choice for a CD?

How long can you leave money in a CD?

Can you lose money on a CD?

How to use CDs to prepare for your next big purchase

Meet our Bankrate experts

Research methodology

Banks we monitor

Learn more

Calculate your CD earnings

Pros and cons of CD investing

Current CD rates