Certificate of Deposit (CD) rates remain well above the national average, presenting an excellent opportunity to maximize your savings. While the Federal Reserve cut its target interest rate three times in 2025, it has held rates steady throughout 2026.
Thank you for reading this post, don't forget to subscribe!Because deposit account rates are directly influenced by the Fed, locking in today’s fixed high yields protects your money from future rate drops.
Read More…How much money is required to invest in a CD?
The Top Offer Today
- Highest Rate: 4.10% APY
- Provider: Marcus by Goldman Sachs
- Term: 14-Month CD
National Average CD Rates vs. Top Offers
Online banks and credit unions continue to drastically outperform traditional brick-and-mortar institutions. To put today’s top 4.10% offer into perspective, here is where the national average stands across various terms for June 2026:
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| Term | National Average Rate |
|---|---|
| 1 Month | 0.23% |
| 3 Months | 1.15% |
| 6 Months | 1.38% |
| 12 Months (1 Year) | 1.65% (Highest Average) |
| 24 Months (2 Years) | 1.53% |
| 36 Months (3 Years) | 1.33% |
| 48 Months (4 Years) | 1.25% |
| 60 Months (5 Years) | 1.35% |
Context: While a 1.65% national average for a 1-year CD is low compared to online bank leaders, these averages are still among the highest seen in nearly two decades due to the Fed’s ongoing efforts to curb inflation.
4 Tips to Find the Best CD for You
- Shop and Compare Online: Don’t limit yourself to your current local bank. Compare rates online to find the highest yields.
- Go Digital: Online-only banks have lower overhead costs, allowing them to pass those savings on to you via much higher APYs.
- Verify Deposit Minimums: The absolute highest yields sometimes require a larger upfront deposit. Ensure your savings match the bank’s minimum requirement for that tier.
- Check the Fine Print: Look closely at early withdrawal penalties and automatic renewal policies. If you need liquidity, consider a no-penalty CD, which lets you withdraw funds early without a fee.
Even though the Federal Reserve has paused rate changes so far in 2026, online banks and financial institutions constantly adjust their rates based on future expectations and their own funding needs.
If banks anticipate that the Fed will cut interest rates later in the year, they will preemptively lower their CD yields to avoid paying higher interest down the road. This shifting environment is precisely why locking in a top promotional rate (like Marcus’s 4.10% APY 14-month CD) protects your money from these downward trends.
The choice comes down to flexibility versus rate protection:
Choose the CD if you have a chunk of cash you won’t need for the next year. It legally binds the bank to pay you today’s high rate for the full term, even if broader market rates drop next month.
Choose an HYSA if you need immediate access to your cash for emergencies. HYSAs offer complete liquidity, but their interest rates are variable—meaning the bank can lower your yield at any time without warning.
"Suresh Kumar Saini is an experienced Tax Assistant and finance writer. He specializes in US & Canada Tax Guide, Indian Income Tax laws, GST compliance, and personal finance, helping freelancers and remote workers optimize their taxes."
