A certificate of deposit (CD) enables savers to lock in a competitive interest rate, allowing their balance to grow over a fixed term. Unlike high-yield savings accounts, where rates can fluctuate at any time, CDs guarantee a fixed APY for the duration of the term, making them attractive when rate stability is a priority. Rates can vary significantly across financial institutions, so comparing offers is essential when shopping for a CD. CDs opened at FDIC-insured banks are protected up to $250,000 per depositor, per institution. Below is a breakdown of current CD rates and where to find the most competitive offers.

Overview of CD Rates Today

Historically, longer-term CDs offered higher interest rates than shorter-term CDs, as banks incentivized savers to keep funds on deposit for extended periods. In the current economic climate, however, the opposite holds true. This inversion reflects broader market dynamics, where CD rates tend to track the Federal Reserve's federal funds rate and prevailing bond market yields, which have shaped a landscape in which shorter maturities currently command higher yields.

As of Sunday, August 2, 2026, the highest CD rate available is 4.10% APY, offered by Marcus by Goldman Sachs on its 9-month CD.

How Much Interest Can I Earn with a CD?

The interest earned from a CD depends on the annual percentage yield (APY), which measures total earnings after one year by factoring in the base interest rate and compounding frequency. CD interest typically compounds daily or monthly.

For example, a $1,000 deposit in a one-year CD with a 1.52% APY compounding monthly would grow to $1,015.20 at the end of the term, consisting of the initial $1,000 deposit plus $15.20 in interest.

By contrast, a one-year CD offering 4% APY would grow the same $1,000 deposit to $1,040.74 over the same period, including $40.74 in interest. Larger deposits amplify earnings: at 4% APY, a $10,000 deposit in a one-year CD would mature at $10,407.42, yielding $407.42 in interest.

Types of CDs

When selecting a CD, the interest rate is typically the primary consideration, but other factors also matter. Several types of CDs offer different benefits, though some may require accepting a slightly lower rate in exchange for added flexibility. It is also worth noting that traditional CDs generally impose early withdrawal penalties, which can eat into principal if funds are accessed before maturity, making the alternatives below worth considering for savers who may need liquidity.

Common options beyond traditional CDs include:

Bump-up CD: This type allows account holders to request a higher interest rate if the bank's rates increase during the term. However, the rate can typically be bumped up only once.

No-penalty CD: Also known as a liquid CD, this option permits early withdrawal of funds before maturity without incurring a penalty.

Jumbo CD: These CDs require a higher minimum deposit, usually $100,000 or more, and often offer a higher interest rate in return. In the current rate environment, however, the difference between traditional and jumbo CD rates may be minimal.

Brokered CD: These CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry greater risk and may not be FDIC-insured.

Additional CD Rate Resources

Beyond today's top rates, several term-specific guides provide further detail on the best available offers:

• Best 18-month CD rates for July 2026: Earn up to 4.05% APY. 18-month CDs offer a balance of solid returns and flexibility.
• Best 1-year CD rates for July 2026: Lock in up to 4.1% APY for the next 12 months.
• Best 6-month CD rates for July 2026: Earn up to 4.08% APY without tying up funds for an extended period.
• Best 2-year CD rates for July 2026: Lock in up to 4.1% APY through 2028 for a guaranteed return over 24 months.

Whether a certificate of deposit is a good investment depends on an individual's timeline and financial goals. Savers weighing CDs against alternatives such as Treasury securities or money market funds may also want to compare current yields across these vehicles, as each carries different liquidity, tax, and insurance characteristics.