For savers seeking a secure place to grow their funds, certificates of deposit (CDs) remain a compelling option, often delivering higher interest rates than traditional checking or savings accounts. Like other bank deposits, CDs are typically insured by the FDIC up to $250,000 per depositor, per institution, making them one of the lower-risk vehicles for parked cash. As of Thursday, August 13, 2026, several financial institutions — particularly online banks, which tend to offer higher yields than brick-and-mortar counterparts due to lower overhead costs — continue to offer competitive yields of 4% APY and above.

Top CD Rate Today

The highest CD rate available today is 4.30% APY, offered by Synchrony Bank on its 16-month CD product. While CD rates remain relatively high compared to historical averages, they have been trending downward since the Federal Reserve began cutting its benchmark target rate. For context, the national average CD rate hovered near 0.20%–0.30% APY for much of the 2010s, meaning today's top offers still sit well above long-term norms even after recent declines.

Federal Reserve Policy and the Outlook for CD Rates in 2026

The Federal Reserve initiated a series of rate reductions in response to slowing inflation and a broadly improving economic outlook. In late 2024, the Fed cut its target rate three times, lowering it by a cumulative one percentage point. In December, the central bank announced its third rate cut of 2025.

Looking ahead to the remainder of 2026, further rate cuts appear unlikely. The Fed has left its target rate unchanged so far this year, and the possibility of a rate increase before year-end is growing.

Although the federal funds rate does not directly determine deposit interest rates, the two are correlated. When the Fed reduces rates, financial institutions generally follow by lowering the rates they offer on deposit products — and the reverse holds true when rates rise. With the Fed having already cut rates and keeping them at lower levels, CD rates have been trending lower as a result. For savers weighing their options, this environment underscores a common trade-off: locking in a longer-term CD secures a fixed rate but may mean missing out if rates subsequently rise, while shorter terms offer flexibility to reinvest sooner.

How to Open a CD Account

The specific process varies by financial institution, but the following general steps apply:

1. Research CD rates. A competitive interest rate is one of the most important factors when selecting a CD. Prospective account holders can compare current CD rates online to identify the best available offers.

2. Choose an account that meets your needs. Beyond the interest rate, consider the CD's term length, minimum opening deposit requirements, and any applicable fees. Selecting a term that is too long could result in an early withdrawal penalty if funds need to be accessed before the CD matures. Some savers use a strategy known as CD laddering — dividing funds across multiple CDs with staggered maturities — to balance higher rates with periodic access to cash.

3. Prepare your documents. Opening a bank account typically requires a Social Security number, a residential address, and a driver's license or passport number. Having these documents ready will streamline the application process.

4. Complete the application. Many financial institutions allow online applications, though some may require an in-person branch visit. The application itself generally takes only a few minutes, and approval decisions are often provided instantly.

5. Fund the account. Once approved, the CD can be funded through a transfer from another account or by mailing a check.

CD Rates by Term — August 2026 Overview

Across various CD terms, the following top rates have been identified for August 2026:

• Best overall CD rates: Up to 4.25% APY, with top picks spanning 6-month, 1-year, 18-month, and 2-year terms.
• Best 1-year CD rates: Up to 4.1% APY for a 12-month commitment.
• Best 18-month CD rates: Up to 4.25% APY, offering a balance of solid returns and moderate flexibility.
• Best 6-month CD rates: Up to 4.15% APY, allowing savers to lock in a guaranteed rate without an extended commitment.
• Best 2-year CD rates: Up to 4.25% APY, securing a fixed rate through 2028.