For savers seeking a secure place to store funds, a certificate of deposit (CD) can be an attractive option. These accounts frequently offer higher interest rates than traditional checking or savings accounts, and deposits at banks are typically insured by the FDIC up to $250,000 per depositor, while CDs at credit unions carry equivalent protection through the NCUA. CD rates vary widely across institutions and terms, however. As of Thursday, July 23, 2026, several financial institutions continue to offer competitive yields of 4% APY and above, with online banks leading the pack — a common pattern, as institutions without branch networks often pass lower overhead costs to depositors through higher rates.

Today's Top CD Rates

CD rates remain relatively high compared to historical averages, though they have been trending downward since the Federal Reserve began cutting its target rate. Despite this decline, the highest CD rate available today is 4.20% APY, offered by Sallie Mae on its 2-year CD. Multiple financial institutions remain competitive at or above the 4% APY threshold.

CD Rate Outlook for 2026

The Federal Reserve began decreasing the federal funds rate in response to slowing inflation and an improving economic outlook. In late 2024, the Fed cut its target rate three times for a cumulative reduction of one percentage point. In December 2025, the Fed announced its third rate cut of that year.

However, further rate cuts in 2026 appear unlikely. The Fed has left rates unchanged so far this year, and the possibility of a rate increase before year-end is growing. While the federal funds rate does not directly set deposit interest rates, the two are correlated — when the Fed lowers rates, financial institutions typically follow suit. With the Fed having reduced and then held rates at lower levels, CD rates have been trending lower as well. Unlike savings or money market accounts, where the advertised rate can change at any time, a CD locks in its rate for the full term, which may make the current environment a compelling time to secure today's yields before they retreat further.

How to Open a CD

The process for opening a CD account varies by financial institution, but the following general steps apply:

1. Research CD rates. One of the most important factors to consider is whether the account provides a competitive rate. CD rates can be compared easily online to identify the best available offers.

2. Choose an account that meets your needs. While the interest rate is a key consideration, it should not be the only one. Prospective depositors should also evaluate the CD's term length, minimum opening deposit requirements, and fees to ensure the account aligns with their financial goals. Selecting a CD term that is too long could result in early withdrawal penalties if funds are needed before maturity.

3. Get your documents ready. Opening a bank account requires providing personal information, including a Social Security number, address, and driver's license or passport number. Having these documents prepared in advance helps streamline the application process.

4. Complete the application. Many financial institutions allow online applications, though some may require an in-person branch visit. In most cases, the application 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 must be funded. This can typically be done by transferring money from another account or mailing a check.