The Federal Reserve cut its federal funds rate three times in 2025. So far in 2026, the Fed has left interest rates unchanged, which means now could be the last opportunity to lock in a competitive CD rate before rates move further. CD rates tend to track the federal funds rate, so when the Fed lowers rates, banks and credit unions generally follow by reducing yields on savings products — which is why savers who lock in a fixed-rate CD are protected from rate declines for the full term. Because CD rates vary widely across financial institutions, it is important to make sure you are getting the best possible rate when shopping around for a CD.

The following is a breakdown of CD rates today and where to find the best offers.

CD Rates Today, Saturday, August 29, 2026

Generally, the best CD rates today are offered on shorter terms of around one year or less. Online banks and credit unions, in particular, offer the top CD rates. This is because online banks lack the overhead costs of physical branch networks, allowing them to pass those savings to customers in the form of higher yields, while credit unions return earnings to members as better rates.

Today, Saturday, August 29, 2026, the highest CD rate is 4.30%. Synchrony Bank offers this rate on its 16-month CD, and Marcus by Goldman Sachs offers it on its 18-month CD. Both banks are FDIC members, so deposits in these CDs are insured up to at least $250,000 per depositor, per institution, in the event of a bank failure.

How Much Interest Can I Earn With a CD?

The amount of interest you can earn from a CD depends on the annual percentage yield (APY). This is a measure of your total earnings after one year, taking into account the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly).

For example, if you invest $1,000 in a one-year CD with 1.52% APY and interest compounds monthly, your balance would grow to $1,015.20 at the end of the year — your initial $1,000 deposit plus $15.20 in interest.

Now suppose you choose a one-year CD offering 4% APY instead. In that case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The gap between these two outcomes — $15.20 versus $40.74 on the same $1,000 deposit — illustrates why comparing APYs across institutions before opening a CD can matter far more than convenience or brand familiarity.

The more you deposit in a CD, the more you stand to earn. Using the same example of a one-year CD at 4% APY but with a $10,000 deposit, your total balance at maturity would be $10,407.42, meaning you would earn $407.42 in interest.

One trade-off to keep in mind: unlike a high-yield savings account, most CDs charge an early-withdrawal penalty if you take out funds before maturity, so the guaranteed rate comes at the cost of access to your money during the term.

Types of CDs

When choosing a CD, the interest rate is usually the top consideration. However, the rate is not the only factor to weigh. Several types of CDs offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here is a look at some of the common types of CDs you can consider beyond traditional CDs:

• Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you are usually allowed to "bump up" your rate just once.
• No-penalty CD: Also known as a liquid CD, this type of CD allows you to withdraw funds before maturity without 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 today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.
• Brokered CD: As the name suggests, 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 more risk and might not be FDIC-insured.

Related Reading

• The best CD rates for August 2026: Earn up to 4.25% APY — We identified the best CD rates and accounts available today based on interest rates, fees, and more. See our top picks across 6-month, 1-year, 18-month, and 2-year terms.
• Best 18-month CD rates for August 2026: Earn up to 4.25% APY — 18-month CDs offer a balance of solid returns and flexibility. Find out which banks and credit unions are offering the top 18-month CD rates.
• Best 1-year CD rates for August 2026: Lock in up to 4.1% APY for the next 12 months — Compare today's best 1-year CD rates, see which banks offer the highest yields, and learn how to lock in a guaranteed return on your savings.
• Best 6-month CD rates for August 2026: Earn up to 4.15% APY — A 6-month CD allows you to lock in a guaranteed rate on your savings without tying up your money for an extended period. See which banks have the best 6-month CD rates today.
• Best 2-year CD rates for August 2026: Lock in up to 4.25% through 2028 — A 2-year CD allows you to lock in a guaranteed rate on your savings for the next 24 months. See which banks have the best 2-year CD rates today.
• Is a certificate of deposit (CD) still a good investment? — Is a certificate of deposit a good investment right now? That depends on your timeline and goals. Learn more about whether now is a good time to invest in CDs.

Source: Yahoo Finance