Savers looking for a secure place to store their money often turn to certificates of deposit (CDs), which frequently pay higher interest rates than traditional checking and savings accounts. CDs opened at FDIC-insured banks are covered by federal deposit insurance up to $250,000 per depositor, per institution and ownership category, which is a key reason they are widely viewed as a low-risk place to hold cash. CD rates can vary widely from one institution to another, however. Here is where CD rates stand as of today and how to identify the strongest offers currently available.

Banks With the Best CD Rates Today

CD rates remain relatively high compared with historical averages, although they have been trending downward since last year, when the Federal Reserve began cutting its target rate. Even so, a number of financial institutions — particularly online banks — continue to offer competitive yields of 4% APY and above. Online banks can often pay more than large brick-and-mortar institutions because they operate without branch networks and the overhead costs that come with them.

As of Thursday, August 27, 2026, the highest CD rate available is 4.30% APY. Synchrony Bank pays this rate on its 16-month CD, while Marcus by Goldman Sachs offers it on its 18-month CD. These figures are quoted as annual percentage yield, which accounts for compound interest and allows offers with different compounding schedules to be compared on equal footing.

CD Rate Outlook for 2026

The Federal Reserve began reducing the federal funds rate in response to slowing inflation and an overall improved economic outlook. It cut its target rate three times in late 2024, for a combined reduction of one percentage point. In December, the Fed announced its third rate cut of 2025.

A further cut in 2026 now appears unlikely. The central bank has left rates unchanged so far this year, and a rate increase before year-end has grown more likely.

The federal funds rate is set by the Federal Open Market Committee, which meets several times a year, and its decisions ripple through both the lending rates banks charge and the deposit rates they pay. The federal funds rate does not directly determine deposit interest rates, but the two are correlated: when the Fed lowers rates, financial institutions typically follow suit, and the reverse holds as well. With the Fed having cut rates and kept them low, CD rates are trending lower again. That dynamic matters for CDs in particular because, unlike high-yield savings accounts whose rates can change at any time, a CD's rate is fixed for its full term once the account is opened. For that reason, the report notes that current CD rates may be worth locking in.

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. A competitive interest rate is one of the most important factors to consider when opening a CD. Rates can be compared easily 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. Prospective holders should also evaluate the term length, minimum opening deposit requirements, and fees to make sure a particular account fits their financial needs and goals. Choosing a CD term that is too long carries the risk of an early withdrawal penalty if funds are needed before the CD matures. It is also worth checking what happens at maturity, since many CDs automatically renew at the rate then offered unless the holder withdraws the funds or makes changes during a short grace period.

3. Get your documents ready. Opening a bank account generally requires a few pieces of information, including a Social Security number, an address, and a 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 customers to apply for an account online, though some cases may require a visit to a branch. Either way, a new CD application typically takes only a few minutes to complete, and approval decisions are often issued instantly.

5. Fund the account. Once the CD application is approved, the account can usually be funded by transferring money from another account or by mailing a check.

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Source: Yahoo Finance — Best CD rates today, Thursday, August 27, 2026. The original page notes that some offers it presents come from advertisers, which may affect which products are covered but not the outlet's recommendations.