If you are searching for a secure place to store your savings, a certificate of deposit (CD) can be an attractive option. These accounts frequently pay higher interest rates than traditional checking and savings accounts, though CD rates can vary widely from one institution to another. CDs are also federally insured up to applicable limits when held at an FDIC-insured bank or NCUA-insured credit union, which is a key part of their appeal for conservative savers. In exchange for that security and fixed rate, you agree to leave your money untouched for the full term. Here is where CD rates stand today and how to find the best available offers.

Banks With the Best CD Rates Today

CD rates remain relatively high compared with historical averages. That said, rates have been drifting lower since last year, when the Federal Reserve began cutting its target rate. The good news is that several financial institutions — particularly online banks — still offer competitive yields of 4% APY and above. Online banks can often pay higher rates than traditional brick-and-mortar institutions because they have lower overhead costs.

Today, Thursday, September 3, the highest CD rate available is 4.30%, offered by Marcus by Goldman Sachs on its 18-month CD.

CD Rate Predictions for 2026

The Federal Reserve began decreasing the federal funds rate in light of slowing inflation and an overall improved economic outlook. It cut its target rate three times in late 2024, by a total of one percentage point. In December, the Fed announced its third rate cut of 2025. However, it is now unlikely the Fed will cut rates again in 2026. So far this year, the Fed has left rates unchanged, and a rate increase is growing more likely before the year's end.

The federal funds rate does not directly determine deposit interest rates, though the two are correlated. When the Fed lowers rates, financial institutions typically follow suit — and vice versa. With the Fed having lowered rates and kept them low, CD rates are trending lower again, which is why locking in today's best CD rates now may be appealing to savers. This dynamic also explains why shorter-term CDs sometimes yield more than longer-term ones: when markets expect rates to fall, banks tend to offer their strongest yields on mid-length terms like 18 months.

How to Open a CD

The process for opening a CD account varies by financial institution, but a few general steps apply in most cases:

1. Research CD rates. One of the most important factors when opening a CD is whether the account pays a competitive rate. CD rates can be compared easily online to find the strongest offers.
2. Choose an account that meets your needs. While the interest rate is a key consideration, it should not be the only one. Evaluate the CD's term length, minimum opening deposit requirements, and fees to make sure a particular account fits your financial needs and goals. For example, avoid choosing a term that is too long, or you could face an early withdrawal penalty if you need access to your funds before the CD matures.
3. Get your documents ready. When opening a bank account, you will typically need to provide a few pieces of information, including your Social Security number, address, and driver's license or passport number. Having these documents on hand will streamline the application process.
4. Complete the application. Many financial institutions allow you to apply for an account online, though in some cases you may need to visit a branch. Either way, the application should take only a few minutes, and approval decisions are often issued instantly.
5. Fund the account. Once your CD application is approved, you can fund the account — usually by transferring money from another account or mailing a check.

For more detail, see step-by-step instructions for opening a CD.

Related Reading

• The best CD rates for September 2026: Earn up to 4.35% APY — top picks based on interest rates, fees, and more, across 6-month, 1-year, 18-month, and 2-year terms.
• Best 18-month CD rates for September 2026: Earn up to 4.35% APY — 18-month CDs offer a balance of solid returns and flexibility.
• Best 1-year CD rates for September 2026: Lock in up to 4.15% APY — a comparison of today's highest 1-year yields.
• Best 2-year CD rates for September 2026: Lock in up to 4.3% through 2028 — locking in a guaranteed rate for the next 24 months.
• Are CD rates going up? — what experts think about where CD rates are headed in 2026.
• Best 6-month CD rates for September 2026: Earn up to 4.15% APY — locking in a guaranteed rate without a long commitment.

Source: Yahoo Finance