CD rates in 2026 vary by financial institution, term length and account requirements. As of September 2026, some competitive certificates of deposit are offering annual percentage yields above 4%, while national average rates are considerably lower. A certificate of deposit generally locks money for a predetermined period in exchange for a fixed interest rate.
Understanding the differences between short and long terms, early withdrawal rules, minimum deposits and deposit insurance can help when researching CD accounts. Rate conditions can also change as banks and credit unions respond to broader interest rate movements and changes in the financial environment.
A certificate of deposit is a deposit account that generally provides a fixed interest rate for a specified period. The money remains deposited until the CD reaches maturity, although some institutions permit early withdrawals subject to specific conditions.
As of September 2026, Bankrate reports that some competitive CD rates are around 4% APY or higher, while national average rates are substantially lower.
Important factors include:
CD terms can range from a few months to several years. The rate available can vary considerably depending on the term selected.
Current September 2026 data includes competitive rates around 4% for several terms, including six-month, one-year, three-year and five-year CDs.
Common terms include:
A longer term does not automatically mean a higher APY, so comparing different maturity periods can be useful.
Banks and credit unions consider several factors when setting rates for newly issued CDs. Broader interest rate conditions, competition for deposits and economic conditions can all influence the rates available to consumers.
Other considerations include:
Rates can change over time, while an existing fixed-rate CD generally retains its stated rate until maturity.
Short-term CDs can provide a shorter commitment period, while longer-term certificates can lock in a rate for several years.
For example, current September 2026 listings show competitive rates across six-month, one-year and multi-year terms.
When comparing terms, consider:
The appropriate term depends on the purpose of the money and the amount of time it can remain deposited.
A CD ladder involves dividing money among certificates with different maturity dates instead of placing everything into one CD. This approach can create several maturity points over time.
A ladder may involve:
CD ladders can provide a structured way to spread maturity dates, although each certificate still has its own terms and withdrawal conditions.
The APY is only one part of evaluating a certificate of deposit. Account requirements and withdrawal rules can also affect how suitable a CD may be for a particular savings goal.
Before opening an account, review:
Bankrate notes that online banks and credit unions can sometimes provide higher CD yields than larger traditional institutions, although rates and terms vary.
CD rates in 2026 vary across financial institutions and term lengths, with some competitive accounts currently offering yields around 4% or higher.
When researching certificates of deposit, it can be useful to compare APYs alongside term length, minimum deposits, withdrawal penalties, maturity dates and deposit insurance. Reviewing these details can provide a clearer understanding of how different CD accounts may fit particular savings timelines.