Best CD Rates October 2026: Up to 4.75% APY, Compared

Say you have $50,000 sitting in a checking account that earns almost nothing. Moved into a one-year CD at 4.50% APY, that money would earn about $2,250 over the year, with the rate fixed for the whole term. Leave it in checking and most of that interest never shows up.

This guide shows where the best CD rates were when we checked on October 13, 2026, how to pick a term, and whether a CD is the right place for your money.

Rates change daily. Every rate below was read from the bank’s own page or rate feed; the date column shows the bank’s own date stamp where it has one, otherwise the day we checked. Check the bank’s page before you open anything.

How we chose these CDs

We read the CD rates directly from each bank’s own website or rate feed on October 13, 2026. Some banks stamp their pages with an earlier date (Barclays October 7, Happen Bank October 12, First Internet Bank October 2), and we show that date in the table. Bread Savings shows no date, so its date is the day we checked. We included only banks where we could see the actual APY and term on the bank’s own site. We ranked by APY first, then looked at minimum deposits and early-withdrawal penalties. We did not open accounts, and this is not a list of every bank: some credit unions and local banks pay more but require membership or live in certain areas. Banks change rates without notice, sometimes daily, so treat the numbers as a snapshot.

Quick answer: highest CD rates as of October 13, 2026

Here are the best rates we found, in order of the highest APY on the bank’s page. Rates are for personal accounts, as of the date shown.

Bank	Best APY (term)	Other terms	Minimum to open	Rate date
Barclays Online CD	4.75% (24 months and 60 months)	4.50% on 12, 18, 36 and 48 months; 4.00% on 6 and 9 months	No minimum	Oct 7, 2026
Bread Savings	4.75% (18 months)	4.60% on 5 years; 4.45% on 1 and 2 years; 4.40% on 9 months	$1,500	Oct 13, 2026
Happen Bank (formerly LendingClub)	4.60% (2 years)	4.40% on 11 months; 4.30% on 6 months	$500	Oct 12, 2026
Synchrony Bank	4.50% (60 months)	4.40% on 13, 36 and 48 months; 4.35% on 18 and 24 months; 4.20% on 12 months	No minimum	Oct 13, 2026
Marcus by Goldman Sachs	4.40% (12 months to 6 years)	4.30% on 9 months; 3.95% on 6 months	$500	Oct 13, 2026
Capital One 360 CD	4.40% (11 months, special)	4.00% on 12 months; 3.60% on 60 months; 3.30% on 6 months	No minimum	Oct 13, 2026
Bask Bank	4.35% (12 months)	4.30% on 24 months; 4.00% on 18 months; 3.90% on 6 months	$1,000	Oct 13, 2026
Ally Bank High Yield CD	4.25% (18 months)	4.15% on 12 months; 4.10% on 60 months	No minimum	Oct 13, 2026
First Internet Bank	4.00% (12 to 60 months)	3.60% on 6 months	$1,000	Oct 2, 2026

For context, the FDIC’s national average rate for a 12-month CD was 1.73% in its September 21, 2026 update, so the top rates above are well over double what the average bank pays.

What is a CD and how does it work?

A certificate of deposit is a deal with a bank. You agree to leave your money alone for a set period, called the term. In return the bank pays you a fixed rate that is usually higher than a regular savings account.

The catch is “alone.” If you take your money out before the term ends, you pay an early withdrawal penalty, which can cut into your interest and sometimes your principal.

Example: you put $10,000 into a one-year CD at 4.50% APY. After twelve months you have earned about $450, with no market risk and no rate changes. APY already includes compounding, so for one year the interest is simply your deposit times the APY.

Why are CD rates where they are?

Banks set CD rates with an eye on the Federal Reserve’s target rate and on what Treasury securities pay. In 2025 the Fed was cutting. In 2026 it has moved the other way: on September 16 it raised its target range to 3.75% to 4.00%, voting 12 to 0. The Fed has not said what it will do next, and we cannot predict it either.

What this means for you in practice:

• A CD locks in the rate you get on the day you fund it. If rates climb afterward, you stay at your lower rate. If they fall, you are glad you locked.
• Nobody knows which way rates go from here. The Fed’s next scheduled meetings are October 27 to 28 and December 8 to 9, 2026. Splitting your money across a few terms, as in the ladder below, is a way to avoid betting on one outcome.
• Do not rush into a term longer than you can afford just because a rate looks good on the day you check.

How much can you earn with a CD?

Here is what a one-year CD at 4.50% APY earns on different amounts. This is simple arithmetic, not a promise: your rate depends on the bank and term you pick.

• $1,000 earns $45.00
• $5,000 earns $225.00
• $10,000 earns $450.00
• $25,000 earns $1,125.00
• $50,000 earns $2,250.00
• $100,000 earns $4,500.00

Compare that with the FDIC’s national average savings rate of 0.37% (September 21, 2026 update): $10,000 would earn about $37 in a year, against $450 in the CD. That is roughly $413 for choosing a better place for the same money. High-yield savings accounts pay more than the national average, so the real gap against a good savings account is smaller. Our guide to the best high-yield savings accounts compares current options.

Which CD term should you choose?

Pick the term from when you will need the money, not from which rate is highest. Terms run from about three months to five or more years.

Short terms (3 to 12 months)

Good for money you will need within a year, such as a house down payment, a tax bill, or holiday spending.

Pros: quick access, less commitment, easy to roll into a higher rate if rates rise.

Cons: you must reinvest more often, and some banks pay less on short terms. In the data above, 6-month APYs range from 3.30% to 4.30%.

Medium terms (1 to 3 years)

Good for goals a couple of years out, such as a car, a wedding, or a home project.

Pros: a steady rate for longer. Several banks pay their best APY here, including 4.75% on 24 months at Barclays.

Cons: your money is tied up longer, and early-withdrawal penalties are larger.

Long terms (4 to 5 years)

Good for money you will not touch, such as part of a college fund or a slice of retirement savings you do not want invested in stocks.

Pros: a fixed rate for years. Barclays pays 4.75% and Bread Savings 4.60% on 5-year CDs.

Cons: the longest commitment, the biggest penalties (365 days of interest at some banks), and the risk that rates rise while you are locked.

Best CD rates by term (rates as of October 13, 2026)

Highest APYs we found for each term among the banks we checked. Minimums and exact dates are in the table above.

Term	Highest APYs found
3 months	Bread Savings 3.95%; First Internet Bank 3.40%
6 months	Happen Bank 4.30%; Synchrony 4.10%; Bread Savings 4.05%
9 months	Bread Savings 4.40%; Marcus 4.30%; Synchrony 4.15%
12 months	Barclays 4.50%; Bread Savings 4.45%; Marcus 4.40%
18 months	Bread Savings 4.75%; Barclays 4.50%; Marcus 4.40%
2 years	Barclays 4.75%; Happen Bank 4.60%; Bread Savings 4.45%
3 years	Bread Savings 4.50%; Barclays 4.50%; Synchrony 4.40%; Marcus 4.40%
5 years	Barclays 4.75%; Bread Savings 4.60%; Synchrony 4.50%

CD vs high-yield savings account: which should you choose?

The answer is not always “CD.”

Choose a CD if:

• You know you will not need the money for the whole term.
• You want a rate that cannot drop while you hold it.
• You are disciplined and will not be tempted to withdraw early.
• You accept a possible penalty in exchange for a fixed rate.

Choose a high-yield savings account if:

• You might need the money quickly.
• You want to add money whenever you like.
• You are building an emergency fund that has to stay liquid.
• You want no penalties and no commitment.

Many people use both. Keep your emergency fund in a high-yield savings account for quick access, and put money you will not need soon into CDs for a fixed return. Our savings rate tracker lists the savings APYs we follow.

Special types of CDs you should know about

No-penalty CDs

These let you take your money out early without paying a penalty, but most require you to withdraw the full balance, and the rate is usually lower than a regular CD. At Marcus, the 11-month No-Penalty CD paid 4.00% APY on October 13, 2026 ($500 minimum, full balance only, withdrawals allowed from seven days after funding), against 4.40% on its regular 12-month CD. Ally’s 11-month No Penalty CD paid 2.80% APY the same day, against 4.15% on its regular 12-month CD, and Ally lets you withdraw any time after the first six days from funding. Compare the no-penalty rate with a good high-yield savings account before choosing one.

Bump-up and raise-your-rate CDs

If the bank’s rate rises during your term, you can ask for an increase, usually once. Banks usually start these at lower rates. Ally’s Raise Your Rate CD lets you raise the rate once on the 2-year term or twice on the 4-year term if Ally’s rate goes up; both terms started at 3.00% APY on October 13, 2026. Synchrony’s 24-month Bump-Up CD allows one rate increase during the term, but it paid 3.00% APY when we checked, against 4.35% on Synchrony’s regular 24-month CD. NASA Federal Credit Union offers 24- and 36-month Premier Bump-Rate Certificates with one rate increase and a $1,000 minimum (membership required). Check the starting APY and compare it with a regular CD before you choose one.

Add-on CDs

Add-on CDs let you make more deposits during the term, up to a limit. NASA Federal Credit Union, for example, offers a 12-month add-on certificate with a $250 minimum deposit and up to $2,500 a month in additions (membership required). Starting rates are usually lower.

Jumbo CDs

Jumbo CDs ask for a much larger minimum deposit than a regular CD. The rate advantage is often small, so compare it with a regular CD before you tie up that much.

Brokered CDs

Brokered CDs are bought through a brokerage account rather than from the bank directly. You can often sell them before maturity at the market price, which could be above or below what you paid, and you can compare many banks in one place. They are still FDIC-insured if the issuing bank is, but you need to check the coverage.

A common mistake: comparing CDs with stocks

Some people compare CD rates with stock market returns and decide CDs are a waste of time.

The thinking goes: why lock up money at around 4% when stocks have historically returned more over long periods?

That misses the point. CDs are not competing with stocks. They compete with other safe places for cash: savings accounts, money market accounts, and Treasury bills. A CD belongs in the part of your finances where you cannot afford to lose money, such as emergency savings and short-term goals. Comparing it with stocks is like comparing a helmet with a motorcycle. You may need both.

How to open a CD, step by step

1. Decide how much to deposit. Only use money you can leave alone.
2. Choose a term. Match it to when you will need the money, not just to the highest rate.
3. Compare rates and requirements. Check minimum deposits, credit union membership rules, and whether the bank is FDIC-insured or the credit union is NCUA-insured.
4. Read the penalty. It is usually expressed as days of interest. See the next section.
5. Apply online or in person. You will need your Social Security number, a government-issued ID, and a funding account.
6. Fund the CD. Most banks accept an ACH transfer. Some require the opening deposit in a single transaction.
7. Save your paperwork. Keep the terms, the maturity date, and the renewal policy.

CD ladder strategy: higher rates and regular access

A ladder splits your money across CDs with different maturity dates. Every time one matures, you can spend it or reinvest it at the then-current rate. That gives you regular access to cash and means you are not locking all your money into one rate on one day.

Example using one bank, Bread Savings, with $10,000 split into five $2,000 CDs (each above the bank’s $1,500 minimum), at the rates on its page when we checked on October 13, 2026:

• $2,000 in a 1-year CD at 4.45% APY
• $2,000 in a 2-year CD at 4.45% APY
• $2,000 in a 3-year CD at 4.50% APY
• $2,000 in a 4-year CD at 4.55% APY
• $2,000 in a 5-year CD at 4.60% APY

Each year one CD matures. You can use that money or roll it into a new 5-year CD at whatever rate is offered then. The ladder helps whether rates rise or fall, because you keep reinvesting a slice of your money at the current rate.

Are CDs FDIC insured?

Yes, CDs at FDIC-insured banks are covered. The FDIC says your deposits are automatically insured to at least $250,000 at each insured bank, and the limit applies per depositor, per bank, per ownership category. Credit union share certificates are covered by the NCUA’s Share Insurance Fund, also up to $250,000 per member, per credit union, per ownership category.

Ownership categories matter. For example, an account in your name alone, a joint account with a spouse, and certain trust accounts are separate categories, each with its own coverage at the same bank. If you have more than the limit, spread it across banks. Check the FDIC’s Electronic Deposit Insurance Estimator (EDIE) for your exact situation.

What happens when your CD matures?

Most banks give a grace period after maturity, often 10 days, to withdraw the money or change the term without penalty. Ally, Bread Savings, Bask Bank and Happen Bank all list a 10-day grace period on their pages; Barclays gives 14 days. If you do nothing, the CD renews automatically, usually for the same term at whatever rate the bank is offering that day, which may be lower than the best rate available.

Set a calendar reminder two weeks before maturity. That gives you time to compare current rates and decide whether to renew, move the money, or spend it.

What are the early withdrawal penalties?

Penalties are set by the bank and the term. Here are the penalties some of the banks above list on their own pages:

• Barclays: 90 days of simple interest on terms of 24 months or less, and 180 days on terms over 24 months.
• Ally Bank: 30 days of interest on terms under 3 months, 60 days on terms of 3 to 24 months, 90 days on 25 to 36 months, 120 days on 37 to 48 months, and 150 days on 49 months or longer.
• Bread Savings: 90 days of simple interest on terms under 1 year, 180 days on terms of 12 months to 3 years, and 365 days on terms of 4 years and up.
• Synchrony Bank: 90 days of simple interest on its 12-month CD, 180 days on its 13- to 24-month CDs, and 365 days on its 60-month CD.
• First Internet Bank: 90 days of interest on 3 months, 180 days on 6 to 18 months, and 360 days on 24 months and longer.

If you break a CD early in its first months, the penalty can exceed the interest you have earned, which means you lose some principal. Read the penalty in the account terms before you fund the CD.

Frequently asked questions

Should I open a CD now or wait?

Nobody can reliably predict rates. The Fed raised its target range on September 16, 2026, and its next scheduled meetings are October 27 to 28 and December 8 to 9, 2026. If you will need the money on a fixed date, a CD that matures then makes sense whatever happens next. If you are unsure, split your money across two or three terms, or use a ladder.

Can you lose money in a CD?

Not from rates or markets: your rate is fixed for the term, and FDIC or NCUA insurance covers your deposits up to $250,000 per depositor, per bank or credit union, per ownership category. You can lose money if you withdraw early and the penalty is larger than the interest you earned, or in real terms if inflation is higher than your rate.

Do you pay taxes on CD interest?

Yes. The IRS treats interest as taxable income in the year it becomes available to you, even if you leave it in the CD. If you received $10 or more in interest from a bank, you should receive Form 1099-INT, and you must report the interest on your return even if you do not get the form.

Can you add money to a CD after opening it?

Usually no. Ally, for example, says you cannot add funds to its CDs after you fund them. Add-on CDs allow extra deposits during the term, up to limits.

CDs or Treasury bills: which is better?

It depends on rate, taxes, and flexibility. The Treasury’s 1-year par yield was 4.47% on October 9, 2026, and its 6-month yield was 4.32%. Treasury bills run from 4 to 52 weeks, start at $100, and the interest is not taxed by states or localities, according to TreasuryDirect. CDs can run longer, are FDIC-insured at insured banks up to the limits above, and some banks pay more. If you live in a state with income tax, Treasury interest can be worth more after tax than the headline rate suggests. Compare the after-tax result.

What is the difference between a CD and a high-yield savings account?

A CD pays a fixed rate for a fixed term and charges a penalty for early withdrawal. A high-yield savings account pays a variable rate you can withdraw from at any time. Use savings for money you may need soon and CDs for money you can leave alone.

Are CDs worth it in 2026?

For the right money, yes. A CD makes sense if you will not need the cash for the full term and want a rate that cannot change. At the rates we found on October 13, 2026, the best banks paid around 4.4% to 4.75% on many terms, more than double the FDIC’s national average for a 12-month CD (1.73%).

A CD does not make sense for money you may need in an emergency, or if you want to keep adding to it. In those cases a high-yield savings account is usually better.

The best CD is the one that matches when you need the money, not just the one with the highest rate. Check the bank’s own page before you open, because these numbers will have moved.

This guide is general information, not financial advice. CD rates can change daily until you open an account. Consider your own situation, or talk to a qualified professional, before you decide where to keep your money.