Certificates of Deposit (CDs) pay a fixed rate that is set when you open one, and offer a guaranteed rate for the full term regardless of what happens to rates afterward. The main trade-off is liquidity: your money is locked until the CD matures, and early withdrawal costs you interest, with the amount set by the bank and the term. This hub covers everything you need to know about CDs in 2026: current rate context, how to calculate earnings, laddering strategies, minimum deposits, and how CDs compare to HYSAs and Treasury bills.
Rate-environment note: The Federal Reserve raised its target rate by 0.25 points to 3.75%–4.00% at its September 16, 2026 meeting — its first increase since 2023, following three consecutive rate cuts in late 2025 and a series of holds through most of 2026. This is a reversal from the “lock in before the Fed cuts” framing that applied earlier in 2026 — confirm the current rate direction before assuming CD or HYSA rates will move a particular way, and always check today’s actual top rates rather than relying on a rate table that may not reflect the latest Fed move.
CD Rates by Term (Read From Bank Pages)
| Term | Popular Direct | Marcus | EverBank |
|---|---|---|---|
| 3 months | — | — | 3.60% |
| 6 months | 4.35% | 3.95% | 3.60% |
| 12 months | 4.50% | 4.40% | 3.50% |
| 18 months | — | 4.40% | 3.40% |
| 24 months | 4.70% | 4.40% | 4.35% |
| 36 months | 4.85% | — | 3.40% |
| 60 months | 5.00% | — | 3.40% |
APYs read on each bank’s own page: Marcus October 15, 2026, EverBank October 9, 2026, Popular Direct October 5, 2026. A dash means we did not read a rate for that term. Popular Direct CDs need $10,000 to open, Marcus $500 and EverBank $1,000. Rates change, so confirm at the bank. See best CD rates and best CD rates by term for more banks.
CD Earnings at a Glance
$10,000 CD at a hypothetical 4.50% APY (compounded; interest = $10,000 x ((1.045)^(months/12) - 1))
| Term | Interest Earned | Total at Maturity |
|---|---|---|
| 6 months | $223 | $10,223 |
| 12 months | $450 | $10,450 |
| 24 months | $920 | $10,920 |
| 36 months | $1,412 | $11,412 |
| 60 months | $2,462 | $12,462 |
For earnings at any rate, term, or balance → CD Calculator For how much $10,000 earns specifically → How Much Does $10,000 Earn in a CD?
How CDs Work
- Deposit — Open a CD with a minimum deposit (no minimum at Ally; $500 at Marcus; confirm current minimums — Discover CD accounts are becoming Capital One CD accounts, so Discover is no longer a separate CD provider)
- Lock in rate — Your APY is fixed for the entire term
- Earn interest — Compounds daily or monthly, paid at maturity or periodically
- Maturity — Withdraw principal + interest, or roll into a new CD
- Early withdrawal — Possible but costs interest; the amount depends on the bank and term
Key CD Features
| Feature | Details |
|---|---|
| FDIC insured | Up to $250,000 per depositor per bank |
| Rate | Fixed for the entire term |
| Early withdrawal penalty | Interest forfeited; the amount varies by bank and term |
| Auto-renewal | Bread Savings, Capital One and Ally say their CDs renew automatically, so set a calendar alert |
| Tax treatment | Interest is taxable income; for a CD longer than 1 year, part of the total interest is reported each year (OID) |
CD Guides in This Cluster
| Guide | What It Covers |
|---|---|
| CD Rates 2026 | How CDs work, earnings tables, types, taxes |
| Best CD Rates of 2026 | Top APYs by term, no-penalty CDs, jumbo CDs, bank comparison |
| Best CD Rates by Term | Bank-by-bank tables for every term from 3 months to 5 years |
| CD Calculator | Returns at any rate, term, and balance; CD ladder calculations |
| CD Laddering Strategy | How to build a CD ladder step by step with examples |
| CD Minimum Deposit by Bank | Minimum opening deposits by bank |
| CDs vs Treasury Bills | Rate comparison, state tax advantage, when T-bills win |
| High-Yield Savings vs CD | Liquidity vs rate lock, earnings scenarios, which to choose |
| HYSA vs CD vs Money Market | Three-way comparison by goal and situation |
| How Much Does $10K Earn in a CD? | Earnings by term and rate for a $10,000 deposit |
| CD Early Withdrawal Penalty | How penalties work by term and bank, when breaking early is worth it, how to avoid |
CD vs High-Yield Savings vs Money Market
| Feature | CD | HYSA | Money Market |
|---|---|---|---|
| Rate type | Fixed | Variable | Variable |
| Access | At maturity only | Anytime | Anytime |
| Check writing | No | No | Yes |
| Minimum balance | Varies by bank | Varies by bank | Varies by bank |
| FDIC insured | Yes | Yes | Yes |
| Best for | Known future expense | Emergency fund | Large liquid balances |
See the best HYSA accounts guide for current savings rates and best CD rates for current CD rates.
→ Full three-way comparison: HYSA vs CD vs Money Market
CD Laddering Strategy
A CD ladder splits your money across multiple CDs with staggered terms so you earn higher long-term rates while maintaining periodic access.
Example: $25,000 CD Ladder (Popular Direct rates, October 5, 2026)
| CD | Amount | Term | APY | Matures |
|---|---|---|---|---|
| CD 1 | $5,000 | 12 months | 4.50% | After 1 year |
| CD 2 | $5,000 | 24 months | 4.70% | After 2 years |
| CD 3 | $5,000 | 36 months | 4.85% | After 3 years |
| CD 4 | $5,000 | 48 months | 4.95% | After 4 years |
| CD 5 | $5,000 | 60 months | 5.00% | After 5 years |
Popular Direct needs $10,000 per CD, so a $5,000 rung would not qualify there; the table only shows how rates step up by term. When CD 1 matures, reinvest it into a new 60-month CD. After 5 years, one CD matures every year, which combines longer-term rates with annual access. Use the CD Calculator with today’s actual rates when planning a real ladder.
→ Full step-by-step guide: CD Laddering Strategy
CDs vs Treasury Bills
Treasury bills (T-bills) offer a meaningful tax advantage: interest is exempt from state and local income tax, while CD interest is fully taxable at federal and state levels.
| State Tax Rate | 5.00% T-Bill Tax-Equivalent CD Rate |
|---|---|
| 0% (TX, FL, etc.) | 5.00% (no advantage) |
| 5% | 5.26% |
| 8% | 5.43% |
| 10% | 5.56% |
| 13.3% (CA) | 5.77% |
If you’re in a high-tax state, a 5.00% T-bill can be worth more than a 5.77% CD after taxes. This table illustrates the math at a fixed 5.00% T-bill yield; use current actual T-bill and CD rates for a real comparison.
→ Full comparison: CDs vs Treasury Bills
When to Use a CD
✅ You have a known future expense — match the CD term to the date (down payment, tuition, wedding) ✅ You want to lock in today’s rate — whichever direction the Fed moves next, your CD rate stays fixed for the term while a HYSA’s variable rate can move with it ✅ You want guaranteed returns — no market risk, FDIC insured ✅ You need spending discipline — the penalty discourages impulse withdrawals
❌ Emergency fund — always use a HYSA; CDs are never right for money you might need urgently ❌ Short-term (under 3 months) — HYSA flexibility wins when the timeline is uncertain ❌ Very large balances over $250K — consider spreading across banks or using T-bills (no FDIC cap)
Early Withdrawal Penalties by Bank
| Bank | Penalty by term |
|---|---|
| Ally | Less than 3 months: 30 days of interest; 3–24 months: 60 days; 25–36 months: 90 days; 37–48 months: 120 days; 49 months or longer: 150 days |
| Capital One (Discover CDs are becoming Capital One CDs) | 12 months or shorter: 3 months of interest; longer than 12 months: 6 months of interest |
| Synchrony | 12 months or less: 90 days of simple interest; more than 12 but less than 48 months: 180 days; 48 months or more: 365 days |
From each bank’s own pages (Ally’s CD help page, Capital One’s online CD disclosure, Synchrony’s CD page). We did not find penalty schedules for Marcus or Chase on pages we could read, so they are not listed; check the account agreement. See the CD Early Withdrawal Penalty guide for worked examples.
→ More on penalties: CD Early Withdrawal Penalty
Bottom Line
CDs are the right choice for surplus savings with a known timeline — not emergency funds. Which terms pay the most varies by bank, and Fed policy can change that — the Fed’s September 16, 2026 rate increase is a reminder that “lock in before rates fall” isn’t always the right framing. The ideal strategy for larger balances: keep 3–6 months of expenses in a liquid HYSA, then put surplus savings into a CD ladder using current actual rates, not a rate table that may be out of date.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy