CD rates in June 2026 are still attractive if you want a guaranteed return and do not need immediate access to the cash. The best 6-month and 1-year CDs are around 4.75% to 5.00% APY, while longer terms usually step down into the mid-4% range. If you expect the Fed to cut further, locking a CD now can protect your yield.
Quick answer: A 1-year CD at about 4.75% APY still beats the national average savings rate by a wide margin, but it only makes sense if you can keep the money untouched until maturity.
| Term | Best APY | Typical national average | Best fit |
|---|---|---|---|
| 3 months | 4.50% | 1.45% | Very short parking cash |
| 6 months | 4.85% | 1.75% | Near-term cash you can lock up |
| 1 year | 4.75% | 1.80% | Most popular balance of yield and flexibility |
| 18 months | 4.60% | 1.55% | Slightly longer lock-in |
| 2 years | 4.45% | 1.40% | Medium-term savings |
| 3 years | 4.25% | 1.20% | Longer lock-in for certainty |
| 5 years | 4.00% | 1.10% | Cash you truly will not need |
Current CD rates by term
CD rates are fixed once you open the account, but the offers available in the market change every day. That is why the best CD usually depends on both your timeline and the current rate cycle.
| Term | Top rate | National average | Typical provider type |
|---|---|---|---|
| 3-month | 4.50% | 1.45% | Online banks, credit unions |
| 6-month | 4.85% | 1.75% | Online banks |
| 1-year | 4.75% | 1.80% | Online banks, credit unions |
| 18-month | 4.60% | 1.55% | Credit unions |
| 2-year | 4.45% | 1.40% | Online banks |
| 3-year | 4.25% | 1.20% | Online banks |
| 5-year | 4.00% | 1.10% | Credit unions |
The national average is still far below the best offers because most traditional banks pay very little on CDs unless you already bank with them or meet special relationship requirements.
Best CD rates by bank
| Bank | 1-year APY | 2-year APY | Minimum deposit |
|---|---|---|---|
| Ally Bank | 4.65% | 4.40% | $0 |
| Marcus by Goldman Sachs | 4.70% | 4.45% | $500 |
| Discover Bank | 4.70% | 4.40% | $2,500 |
| Capital One 360 | 4.60% | 4.30% | $0 |
| Synchrony Bank | 4.75% | 4.50% | $0 |
| Bread Savings | 4.80% | 4.60% | $1,500 |
| CIT Bank | 4.65% | 4.35% | $1,000 |
| Navy Federal CU | 4.85% | 4.55% | $1,000 |
These rates are representative of the top market. Always verify the live APY and term before opening a CD because banks can change offers without much notice.
Are CDs better than high-yield savings accounts?
| Feature | 1-year CD | HYSA |
|---|---|---|
| Rate type | Fixed | Variable |
| Liquidity | Locked until maturity | Withdraw anytime |
| Rate risk | None once opened | Rate can fall |
| Early exit | Penalty likely | No penalty |
| Best use | Cash you can leave alone | Emergency fund, near-term spending |
A CD is better when you want to lock in yield and you are confident you will not need the money early. A high-yield savings account is better when flexibility matters more than the last few tenths of a point.
Worked example
If you put $10,000 into a 1-year CD at 4.75% APY, you would earn about $475 over 12 months before taxes. If the same money sits in a savings account at 4.30% APY, it would earn about $430. The CD pays about $45 more, but only if you can leave the money untouched for the full term.
Early withdrawal penalties
Most CDs charge a penalty if you break them before maturity.
| Term | Typical penalty |
|---|---|
| Under 6 months | 60 to 90 days of interest |
| 6 to 12 months | 90 to 150 days of interest |
| 12 to 24 months | 150 to 180 days of interest |
| 2 to 5 years | 180 to 365 days of interest |
That penalty can wipe out some or all of your interest if you break the CD too soon. If you think you may need the money, a no-penalty CD or a savings account is usually the safer choice.
CD ladder strategy
A CD ladder spreads your money across several maturities so you do not have all of it locked up at once.
Example: $12,000 ladder
| CD | Amount | Term | Rate |
|---|---|---|---|
| CD 1 | $3,000 | 1 year | 4.75% |
| CD 2 | $3,000 | 2 years | 4.45% |
| CD 3 | $3,000 | 3 years | 4.25% |
| CD 4 | $3,000 | 5 years | 4.00% |
Each year, one CD matures and becomes available again. That gives you some liquidity while still keeping part of your savings in fixed-rate deposits.
When to open a CD
Open a CD when:
- You know you will not need the money before maturity.
- You think savings rates may fall further.
- You want a guaranteed return without market risk.
Wait or use a savings account when:
- You need emergency access.
- You think rates may rise soon.
- The early withdrawal penalty would offset too much of the yield.
For a broader strategy, compare CD rates with how the Fed affects savings, prime rate, and average interest rates.
Related guides
- Interest Rates & Federal Reserve Guide 2026
- Prime Rate Today 2026
- How the Fed Affects Your Savings
- Average Interest Rates 2026
- Best High-Yield Savings Accounts
- Savings Rate History 1980–2026
CD rate FAQs
Why are CD rates falling?
CD rates usually fall after the Federal Reserve cuts the federal funds rate. Banks also lower CD yields when they do not need to attract as much deposit money.
Is a 1-year CD better than a 5-year CD?
Not always. A 1-year CD gives you more flexibility, while a 5-year CD can lock in a rate for longer. The right choice depends on when you need the money and whether you expect rates to keep falling.
Are CD rates guaranteed?
The APY is guaranteed for the full term once the CD is opened, assuming the bank is FDIC-insured and you keep the money in the account until maturity.
How much do I need to open a CD?
That depends on the bank. Some online banks have no minimum deposit, while others require $500, $1,000, or more.
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