The best CD rates for January 2026: Earn up to 4.1% APY

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If you’re looking for a secure place to store your money and earn interest, a high-yield certificate of deposit (CD) could be a good option. These accounts require you to keep your money on deposit for a set period of time, and in exchange for locking in your funds, you may earn a higher rate than what traditional savings accounts offer.

Not sure where to start? We reviewed more than 400 data points to determine the best CDs available today across 6-month, 1-year, 18-month, and 2-year terms. Accounts were evaluated based on factors such as APY, minimum opening deposit, customer service, and more (see our full methodology here).

We then identified the best CD rates among the accounts we reviewed. As of January 2026, these are the highest CD rates available from our selection of the best CD accounts on the market today.

Alliant Credit Union’s CDs offer some of the best rates on the market today, with the highest rate available on its 6-month term. A $1,000 minimum deposit is required to open an account. You will also need to become a member of the credit union to open a CD, but anyone is eligible to join.

Read our full review of Alliant Credit Union

America First Credit Union’s 6-month CD earns 4.05% APY — more than 2.5 times the national average rate. The minimum opening deposit is a modest $500.

Read our full review of America First Credit Union

The 6-month CD from Marcus by Goldman Sachs currently offers a competitive 4.05% APY. The minimum deposit needed to open an account is $500. Note that if you withdraw your CD funds early, an early withdrawal penalty of 90 days’ interest applies.

Read our full review of Marcus by Goldman Sachs

Bread Savings also offers a 6-month CD that earns a competitive 4.05% APY with daily compounding interest. However, it does have a higher minimum opening deposit of $1,500.

Read our full review of Bread Savings

America First Credit Union’s 2-year CD also boasts one of the highest CD rates available today at 4.05%, making it a great option if you want to lock in a competitive rate for longer. The minimum opening deposit is $500.

Marcus by Goldman Sachs also made our list twice for its 1-year CD, which earns an impressive 4% APY. The minimum opening deposit is just $500.

Live Oak Bank’s 1-year CD requires a higher minimum opening deposit of $2,500, but earns an impressive 4% APY with daily compounding interest. Additionally, the early withdrawal penalty isn’t as steep as some of the other CDs on our list at 90 days’ simple interest.

Sallie Mae’s 1-year CD earns a competitive 4% APY, though the minimum opening deposit is on the higher end at $2,500.

Read our full review of Sallie Mae Bank

Popular Direct had the highest minimum opening deposit on our list at $10,000, so this account is a better option for savers with larger balances. However, you’ll be rewarded with a competitive 4% APY for a 1-year term.

Read our full review of Popular Direct

Alliant Credit Union’s 1-year CD earns an impressive 4% for a 1-year term. The minimum opening deposit is $1,000.

Limelight Bank offers a competitive 4% APY on its 6-month CD term. A minimum deposit of $1,000 is required to open an account.

The 18-month CD from Marcus by Goldman Sachs offers 4% APY with a minimum opening deposit of only $500. This account is a great option for savers who want to lock in one of the bank’s highest CD rates for longer than a year.

The final spot on our list went to Popular Direct’s 6-month CD. Like its 1-year CD, this account also requires a steep minimum opening deposit of $10,000. However, it still offers one of the most competitive rates on the market for savers who can afford the larger balance requirement.

Read more: These 7 banks offer CDs with no minimum deposit requirement

CDs are a type of deposit account that may or may not be the right fit depending on your unique savings goals. Before opting for a CD, it’s important to fully understand how they work, the benefits and drawbacks of a CD, and where CD rates stand today.

The highest-paying CDs are currently offering APYs up to 4.1%, though these are only available at select banks. Nationally, the average interest rate on a 6-month CD is 1.58%, according to the FDIC. Current CD rates are falling from their recent peak thanks to the Federal Reserve’s recent decision to begin lowering the federal funds rate.

Read more:

CDs are not all structured the same way, and you might find that one type of CD works better for your savings strategy than another. Some of the most common types of CDs include:

Most CDs impose an early withdrawal penalty if you access your funds before the account reaches maturity. The exact amount of the penalty depends on the financial institution’s policies and often the length of the CD term. This penalty is usually expressed as a certain number of days or months’ worth of interest.

Learn more:

Consider these important pros and cons of CDs before opening an account:

Pros

Cons

Learn more about the pros and cons of CDs.

When your CD matures, you have a few options for how to proceed. You might decide to renew your CD for the same term length at the current interest rate. You can also withdraw the funds and open a new CD with a different bank, put your money into a different type of savings account, explore new investment options, or use the money to fund a major purchase.

When your CD reaches maturity, your bank will likely give you a short grace period before automatically renewing your CD, during which time you should take action and make a decision about how to best use those funds.

Learn more about what to do when a CD matures.

You may be worried about locking your money into a CD and missing out on higher interest rates in the future. And in an environment where interest rates are rising, missing out on a great rate is a real possibility.

CD laddering can help you avoid the risk of missing out on higher CD rates later. With a CD ladder, you split your savings among multiple CDs with staggered maturity dates (e.g., a 6-month CD, a 1-year CD, and a 2-year CD). When the first CD in your ladder matures, you can access those funds if you need them or roll the cash into a new CD — perhaps at a higher interest rate if one is available at that time. Meanwhile, your longer-term CDs will continue earning the rate you locked in when you opened them.

Learn more about creating a CD ladder.

CDs are just one option for growing your savings. They can be a smart choice as part of a broader financial plan — especially if you’re saving for a specific goal, want to lock in a competitive interest rate, and don’t expect to need access to your money anytime soon. However, if flexibility is a priority, there are other savings options worth considering.

CDs vs. high-yield savings accounts

Both CDs and high-yield savings accounts offer secure ways to earn interest on your money, but they function differently. While both can provide competitive APYs, high-yield savings accounts allow you to access your funds more easily and without penalties. CDs, by contrast, require you to leave your money untouched for a set term; withdrawing funds early typically results in an early withdrawal penalty.

Learn more about CDs vs. high-yield savings accounts.

CDs vs. money market accounts

Both money market accounts and CDs are known for offering higher interest rates than traditional savings accounts. They’re also both federally insured in most cases. However, CDs and money market accounts differ in a few key ways, including when it comes to fees, accessibility, and more.

Learn more about CDs vs. money markets.

CDs vs. bonds

CDs and bonds are both considered low-risk places to put your money, but they function quite differently. Bonds may offer greater liquidity than CDs because you can sell them at any time, whereas CDs are locked in for the duration of the term. These two types of investments are also insured by different entities.

Learn more about CDs vs. bonds.

CDs vs. Treasury bills

Another low-risk investment option, Treasury bills have become more popular in recent years. Also known as T-bills, these investments are backed by the U.S. government, offer competitive rates, and may be a more favorable option for short-term savers. Unlike CDs, T-bills provide greater liquidity and can be sold at any time.

Learn more about CDs vs. Treasury bills.

When saving for your golden years, choosing the right type of account can make all the difference. CDs and fixed annuities are both popular options for retirement savings because they’re considered safe investments, offering fixed APYs or guaranteed minimum rates that can help you grow your nest egg.

Learn more about CDs vs. fixed annuities.

CDs vs. IRAs

Choosing between a CD and an IRA will require you to think carefully about your risk tolerance and how each account type fits into your savings timeline. While CDs are typically considered lower risk, IRAs give you the option to invest in higher-risk assets for the ability to earn higher returns over time. Ultimately, choosing between these two types of accounts will depend on how long you plan to keep your money in the account and how much you’re willing to risk.

Learn more about CDs vs. IRAs

CDs. vs. mutual funds

Mutual funds can be a worthwhile alternative to CDs if you’re looking for more flexibility and are comfortable taking on additional risk, especially during periods of market volatility. Unlike CDs, mutual funds can generally be sold at any time, allowing you to access your money without waiting for a fixed term to end.

Learn more about CDs vs. mutual funds

The interest rate on a CD plays a key role in how your money grows over time. A higher rate means your balance will earn interest faster and give you a better return on your investment. Today, CD rates range quite a bit depending on the financial institution. However, the best rates hover around 4% APY.

One of the biggest benefits of a CD is that these rates are locked in; once you open and fund your account, you don’t have to worry about your rate changing. This is also why it’s crucial to make sure you’re locking in the best possible rate when opening an account.

Learn more about good CD rates today.

CDs work differently from other types of deposit accounts. Unlike a traditional savings account, for example, a CD requires you to keep your money on deposit for a set period of time. However, CDs also typically offer higher interest rates than most other types of savings accounts in exchange for locking in your money.

CD terms can range from a few months to several years. As long as your money remains untouched, you can expect your balance to keep growing. However, making an early withdrawal from your CD will likely result in a penalty.

Learn more about how CDs work and how to choose the right one.

The minimum amount needed to open a CD varies depending on the financial institution and the specific type of CD. Often, you’ll need at least $500 to $1,000 to open an account, although there are many banks and credit unions that offer CDs with no minimum balance requirement.

Learn more about minimum balances for CDs.

CDs can give you a solid return on your savings if you secure an account with a high APY, but they are not without their limitations. When determining if a CD is right for you, consider how often you need to access your money and whether there are other options that could help you meet your savings goals.

Learn more:

CDs are usually insured by the federal government. Any CD you open with an FDIC-insured bank or NCUA-insured credit union is covered up to $250,000 per depositor. If your financial institution fails, the government guarantees the balance of your account up to $250,000.

Learn more about FDIC insurance for CDs.

Gifting a certificate of deposit is possible, but there are certain rules about who you can give one to and how to go about it. Generally, the owner of a CD must open the account in their name, so you can’t offer a certificate of deposit gift to another adult. However, you can open a custodial account for a child and offer a CD as a gift.

Learn more about gifting CDs.

The term of your CD — the length of time it takes your CD to mature — can affect the interest rate a bank offers you. Typically, long-term CDs feature higher APYs as a benefit of letting the bank hold on to your cash for a longer period. But longer terms don’t always equal higher interest rates.

In the current market, average interest rates increase between 1-month and 1-year CDs. Yet that upward trend isn’t consistent with all longer-term CDs. Data from the FDIC finds the average 2-year CD rate to be 1.41%, but a 4-year CD sits at 1.24%. As you can see, today’s best CD rates aren’t necessarily tied to accounts with the longest terms.

Learn more:

CDs are considered low-risk investments because they offer a fixed interest rate. Once that rate is locked in, it won’t fluctuate as a result of major economic events or stock market swings. Plus, you won’t lose your principal deposit. Still, CDs are not completely risk-free.

Learn more about when you can lose money in a CD.

Yes. The IRS considers any CD interest over $10 to be taxable income. However, there are ways to reduce or defer those taxes. Holding CDs in certain tax-advantaged accounts — such as IRAs, 529 plans, or HSAs — can help minimize your overall tax burden.

Learn how to avoid paying taxes on CD interest.

Opening a CD is simple, and in many cases, can be done online from the comfort of your home. Once you’ve done your research to select an account after considering APY, fees, minimum opening deposit, and other features, you’ll need to choose your CD term and fund your account with the required amount.

Here’s how to open a CD account in 5 steps.

Our grading system, collected and carefully reviewed by our personal finance experts, comprised nearly 300 data points for approximately 60 federally insured CDs across 6-month, 1-year, 18-month, and 2-year terms. We used this data to develop our list of the best CDs.

We evaluated these accounts according to several key metrics, including annual percentage yield, minimum opening deposit, compounding frequency, and more.

The accounts on our list could earn a maximum of 25 points across all metrics. Here’s a closer look at the categories we considered:

Michelle Lambright Black, Kat Tretina, Hal Bundrick, and Zina Kumok contributed to this article.

 

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