Best CD Rates for 2026, Ranked by Yield and Term
Marcus and Ally both offer competitive rates with clear penalty terms. Discover is worth comparing on longer terms. Do not chase a rate on money that might become your emergency fund.
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Priya Raghunathan Editor, banking and creditPriya covers deposit accounts and consumer credit, and re-checks every published rate on a fixed schedule.
A certificate of deposit locks your money for a fixed term in exchange for a fixed rate. That trade only makes sense for money you are certain you will not need. Compare the early withdrawal penalty as carefully as the rate itself.
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The short version
- A certificate of deposit trades access for certainty: the rate is fixed for the term, and taking the money out early triggers a penalty set at account opening.
- An early withdrawal penalty can exceed the interest earned, so breaking a CD in the first few months can return less than the amount deposited.
- A CD only makes sense when you know the date you need the money, because a savings account pays a variable rate with no lock-up at all.
- Most CDs renew automatically at the end of a short grace period, often at a rate the bank chooses rather than the one you signed up for.
- CD interest is taxable in the year it is credited, even on a multi-year CD you have not yet cashed in.
The verdict
Marcus and Ally both offer competitive rates with clear penalty terms. Discover is worth comparing on longer terms. Do not chase a rate on money that might become your emergency fund.
- Winner
- Best overall
Marcus Online Savings · Competitive across terms with a straightforward penalty schedule.
- Winner
- Most flexible
Ally Online Savings · A no-penalty option for money you might need before the term ends.
- Winner
- Best for long terms
Discover Online Savings · Worth comparing on five-year terms where rates diverge most.
Our picks
1. Marcus Online Savings, Best overall
Competitive across terms with a straightforward penalty schedule.
2. Ally Online Savings, Most flexible
A no-penalty option for money you might need before the term ends.
3. Discover Online Savings, Best for long terms
Worth comparing on five-year terms where rates diverge most.
See itDiscover Online Savings
Discover
The verdict
Marcus and Ally both offer competitive rates with clear penalty terms. Discover is worth comparing on longer terms. Do not chase a rate on money that might become your emergency fund.
How we ranked these
We compare the annual percentage yield across common terms, the minimum deposit, and the early withdrawal penalty stated in months of interest. Promotional terms are noted where the rate is not available at renewal.
How we ranked these
We compare the annual percentage yield across common terms, the minimum deposit, and the early withdrawal penalty stated in months of interest. Promotional terms are noted where the rate is not available at renewal.
Frequently asked questions
What happens if I withdraw early?
You forfeit interest, typically several months’ worth. On a short term that can mean losing everything you earned.
Is a CD better than savings?
Only if you are certain about the timeline. A CD locks the rate, which protects you if rates fall and costs you if they rise.
What is a CD ladder?
Splitting money across CDs maturing at staggered intervals, so part of it becomes available regularly without forfeiting interest.
Do I pay tax on CD interest?
Yes, as ordinary income, in the year it is credited, even if the CD has not matured.
Are CDs FDIC-insured?
Yes, at insured banks, up to $250,000 per depositor per bank per ownership category.
Sources
Every figure on this page is attributed to a named source with the date it took effect. Our reviewers check them against the primary source before publication.
About our expert
Editor, banking and credit
Experience
Priya edits the banking and credit-card desks: savings and checking accounts, CDs, card APRs, balance transfers and the mechanics of how interest is actually charged.
Rates on these pages move weekly, so her rule is that a quoted APY or APR carries the date it was checked, and a figure past its re-check window is pulled rather than left to go quietly stale.
Areas of expertise
- Savings and CDs
- Credit cards
- APR and interest
- Credit scoring
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