Savers looking for a secure place to store their money continue to find some of the strongest yields in certificates of deposit (CDs). CDs are time deposits that pay a fixed rate for a set term — typically anywhere from a few months to several years — and they often provide higher interest rates than traditional checking and savings accounts. At FDIC-insured banks, CD balances are covered up to applicable federal insurance limits. CD rates, however, can vary widely from one financial institution to another. Here is where CD rates stand today, Thursday, August 20, 2026, and how the leading offers compare.

Banks With the Best CD Rates Today

Measured against historical averages, CD rates remain relatively high. Even so, yields have been on the decline since last year, when the Federal Reserve began cutting its target rate. The good news for savers is that several financial institutions — particularly online banks — continue to offer competitive rates of 4% APY and up. Online banks are frequently among the rate leaders because they operate without branch networks, which keeps overhead costs low and allows more of that savings to be passed along to depositors through higher yields.

As of today, Thursday, August 20, 2026, the highest CD rate available is 4.30% APY. That rate is offered by Synchrony Bank on its 16-month CD.

CD Rate Outlook 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.

Back in December, the Fed announced its third rate cut of 2025. However, it is now unlikely that the Fed will cut rates again in 2026. So far this year, the central bank 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 the reverse applies when rates rise. With the Fed having lowered rates and kept them low, CD rates are trending lower again. Because a CD locks in its annual percentage yield for the full term, an account opened today secures the rate available on the day of purchase for the life of the CD — in contrast with savings accounts, where the rate can change at any time. Whether CD rates move higher at any point this year will depend heavily on the Federal Reserve's next decisions on the federal funds rate. Those decisions are made by the Federal Open Market Committee, which holds regularly scheduled meetings throughout the year — a calendar savers can follow to see when the next shift in the rate environment could arrive.

How to Open a CD

The exact 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 to consider when opening a CD is whether the account provides a competitive rate. CD rates can easily be compared online to find the best offers.

2. Choose an account that meets your needs. While a CD's interest rate is a key consideration, it should not be the only one. Also 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 CD term that is too long — otherwise an early withdrawal penalty applies if funds are needed before the CD matures.

3. Get your documents ready. Opening a bank account requires providing a few pieces of information, including a Social Security number, address, and driver's license or passport number. Having these documents on hand helps streamline the application process.

4. Complete the application. Many financial institutions now allow account applications online, though in some cases a branch visit may be required. Either way, the application for a new CD should take only a few minutes to complete, and in many cases the approval decision is issued instantly.

5. Fund the account. Once the CD application is approved, it is time to fund the account. This can usually be done by transferring money from another account or by mailing a check.

Where CD Rates Stand by Term in August 2026

Looking across the broader market, the best CD rates and accounts identified for August 2026 reach up to 4.25% APY, based on interest rates, fees, and other criteria, with top picks spanning 6-month, 1-year, 18-month, and 2-year terms. That ceiling sits just below the 4.30% top rate available today, a gap that reflects the fact that these picks weigh factors beyond yield alone, including fees and other criteria.

• 6-month CDs — up to 4.15% APY. A 6-month CD allows savers to lock in a guaranteed rate without tying up money for an extended period.
• 1-year CDs — up to 4.1% APY. The best 1-year CDs let savers lock in a guaranteed return for the next 12 months, with the highest yields concentrated among a small group of banks.
• 18-month CDs — up to 4.25% APY. 18-month CDs offer a balance of solid returns and flexibility, with top rates available from both banks and credit unions.
• 2-year CDs — up to 4.25% APY. A 2-year CD fixes a guaranteed rate on savings for the next 24 months — effectively through 2028 at current terms.

One note on the list above: CDs issued by credit unions, sometimes labeled share certificates, are federally insured through the National Credit Union Administration (NCUA) rather than the FDIC, under the same applicable federal insurance limits.

Source

This article is based on and adapted from coverage published by Yahoo Finance on August 20, 2026: Best CD rates today, Thursday, August 20, 2026: Lock in up to 4.30% APY with a 16-month CD. Per the publisher's advertiser disclosure, some offers on the original page come from advertisers who pay the publisher, which may affect which products are written about but not the recommendations.