CD rates differ by bank and term, and most CDs fix their rate for the term. The table below shows the highest rates we read on bank pages in October 2026 next to the FDIC’s national averages. If you expect rates to fall, locking a CD now can protect your yield.
Quick answer: Popular Direct’s page showed a 12-month CD at 4.50% (rate effective October 5, 2026), which compares with the FDIC national average of 1.76% for a 12-month CD (October 19, 2026). A CD fits best if you can keep the money untouched until maturity.
| Term | Highest APY We Read (bank) | FDIC national average (Oct 19, 2026) |
|---|---|---|
| 3-month | 3.60% (EverBank) | 1.14% |
| 6-month | 4.35% (Popular Direct) | 1.39% |
| 1-year | 4.50% (Popular Direct) | 1.76% |
| 18-month | 4.75% (Bread Savings) | n/a |
| 2-year | 4.70% (Popular Direct) | 1.55% |
| 3-year | 4.85% (Popular Direct) | 1.39% |
| 5-year | 5.00% (Popular Direct) | 1.41% |
Current CD rates by term
Most CD rates are fixed once you open the account, but the offers available in the market change often. That is why the best CD usually depends on both your timeline and the current rate cycle.
The national average is far below the best offers because it blends the rates of all insured banks and credit unions, weighted by their deposits, and some large banks pay very little on CDs.
CD rates by bank
| Bank | 12-month APY | 24-month APY | Minimum deposit |
|---|---|---|---|
| Popular Direct | 4.50% | 4.70% | $10,000 |
| Marcus by Goldman Sachs | 4.40% | 4.40% | $500 |
| EverBank | 3.50% | 4.35% | $1,000 |
Rates as of the date each bank’s page gives: EverBank October 9, 2026, Marcus by Goldman Sachs October 15, 2026, Popular Direct October 5, 2026. Ally, Capital One and Synchrony are not in the table because their rate tables did not load in readable form when we checked.
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 | Tied up until maturity (early exit costs a penalty) | Withdraw as needed, within the bank’s limits |
| Rate risk | Rate locked for the term | 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 4.50% APY (Popular Direct’s rate on its page), you would earn about $450 over 12 months before taxes. If the same money sits in a savings account at 4.05% APY (Bread Savings), it would earn about $405. The CD pays about $45 more, but only if you can leave the money untouched for the full term and the savings rate does not change.
Early withdrawal penalties
Most CDs charge a penalty if you break them before maturity, and the schedule is set by each bank. Examples from bank pages:
| 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 | 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 |
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 (Popular Direct) |
|---|---|---|---|
| CD 1 | $3,000 | 1 year | 4.50% |
| CD 2 | $3,000 | 2 years | 4.70% |
| CD 3 | $3,000 | 3 years | 4.85% |
| CD 4 | $3,000 | 5 years | 5.00% |
Popular Direct asks $10,000 per CD, so the $3,000 rungs only illustrate the structure.
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 do CD rates change?
CD rates tend to follow the Federal Reserve’s policy rate, though each bank sets its own. The Fed raised its target range to 3.75%–4.00% on September 16, 2026.
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 fall.
Are CD rates guaranteed?
The APY on a standard fixed-rate CD stays the same for the full term, though it can change when the CD renews, and some CD types, such as raise-your-rate CDs, are built to let the rate move.
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.
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