CD rates without the noise.
Top APYs from 10 FDIC-insured banks across 6-month, 1-year, 2-year, and 5-year terms. No teaser rates, no minimums hidden in fine print. Pick the term that fits your timeline and lock the best yield available today.
CD rate snapshot
Source: bank rate sheets, FDICBest CDs across 6mo, 1Y, 2Y, and 5Y terms
All rates are APY (compounded). Pulled directly from bank rate sheets. No paid placements. Minimums shown in the right column.
How CD ladders work, and when they beat a HYSA.
CDs trade liquidity for a guaranteed rate. A ladder restores most of the liquidity while keeping most of the yield.
CD ladder, the 5-rung version
Split your money into five equal buckets. Buy a 1-year CD, a 2-year, a 3-year, a 4-year, and a 5-year. Every year after that, the shortest CD matures and you roll it into a new 5-year CD. Within five years, every rung is at the 5-year rate, and one fifth of your money is liquid every 12 months. You earn close to the 5-year yield with the access of a 1-year CD.
When a CD beats a high-yield savings account
HYSAs pay variable rates. If the Fed cuts, your APY drops the same week. CDs lock in today's rate for the full term. If you have money you will not need for 12 months and the Fed is signaling cuts, locking a 5.30% 1-year CD today usually beats hoping the HYSA stays at 5%. The CFPB recommends comparing the term-adjusted yield against the projected average HYSA rate over the same period.
No-penalty CDs as middle ground
Several banks (Marcus, CIT, Ally) offer no-penalty CDs. The APY is usually 0.10 to 0.30 percentage points lower than a standard CD of the same term, but you can withdraw anytime without losing interest. For an emergency fund, a no-penalty 11-month CD often pays a higher locked rate than a regular HYSA without sacrificing liquidity.
Tax treatment
Interest from CDs is taxed as ordinary income at the federal level and most state levels. The bank issues a 1099-INT every January for the prior year's interest. Treasury bills and notes (state-tax-exempt) are sometimes a better deal for high earners in California, New York, or other high-tax states. Always model after-tax yield before locking a long term.
FDIC coverage stacking
FDIC insurance is $250,000 per depositor, per bank, per ownership category. If you have $400,000 to ladder, splitting between two banks (or using a joint account) doubles your coverage. The FDIC's BankFind tool confirms each bank's insured status, and Fintiex only lists FDIC-insured institutions. Never trust an unusually high APY from a bank you cannot verify.
Common questions.
What is a CD and how does it work?
A certificate of deposit (CD) is a savings product where you commit a fixed amount of money for a fixed term (6 months, 1 year, 5 years) in exchange for a guaranteed interest rate. The bank pays the rate for the full term, and you cannot withdraw without paying an early-withdrawal penalty. CDs are FDIC-insured up to $250,000 per depositor per bank, the same as a regular savings account.
Are CDs safe?
Yes. Every bank in our table is FDIC-insured, which means deposits up to $250,000 are guaranteed by the federal government. If the bank fails, you get your money back. The main risk with a CD is opportunity cost: if rates rise after you lock, you are stuck at the older rate until the term ends or you eat the early-withdrawal penalty.
What is a CD ladder and why use one?
A CD ladder splits your money across multiple terms. For example, instead of putting $25,000 in a 5-year CD, you put $5,000 each into 1, 2, 3, 4, and 5-year CDs. Each year, one CD matures and you reinvest at the prevailing 5-year rate. Over time, you earn close to the 5-year average rate while having one fifth of your money come due every year. It is the standard way to balance yield and liquidity.
Should I use a brokered CD or a bank CD?
Bank CDs are simpler: open online, deposit money, get paid interest, withdraw at maturity. Brokered CDs (sold through Fidelity, Schwab, Vanguard) sometimes carry slightly higher APYs and can be sold on the secondary market before maturity, but the price you sell at depends on rate moves. For most savers, a bank CD from one of the names above is the easier and more predictable choice.
What happens if I withdraw early?
You pay an early-withdrawal penalty, typically 90 days of interest on shorter terms (under 2 years) and 180 to 365 days of interest on longer terms. The penalty comes off your interest earnings first, but if it exceeds what you have earned, it can eat into principal. Some no-penalty CDs (Marcus, CIT) skip the penalty entirely in exchange for a slightly lower APY.
How are CD rates set right now and where are they headed?
CD rates track the Federal Reserve's policy rate and short-term Treasury yields. With the Fed paused around 4.25 to 4.50%, banks are offering 1-year CDs in the 5.10 to 5.45% range. If the Fed begins cutting rates in late 2026, CD rates will follow downward, which is why locking longer-term yields now is a popular move. The FDIC's National Rate Cap data tracks the ceilings under deposit insurance rules.
Build your CD ladder in 60 seconds.
CD ladder calculator. Set rungs, set rates, see total yield.