CD rates have been trending upward thanks to a recent rate hike by the Federal Reserve. So, if you’re looking for a way to lock in a competitive return on your savings — while protecting your money from market risk — a certificate of deposit (CD) could be a great option. In fact, the best CD rates are hovering around 4% APY. Read on for a snapshot of CD rates today and where to find the best offers.
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Where are the best CD rates today?
CDs today typically offer rates significantly higher than traditional savings accounts. Currently, the best short-term CDs (six to 12 months) generally offer rates around 4% to 4.5% APY.
Today, Wednesday, September 23, 2026, the highest CD rate is 4.40%, and it’s offered by Happen Bank on its 2-year CD.
The following is a look at some of the best CD rates available today from our verified partners:
Are CD rates going up or down?
CD rates are tied to the federal funds rate; when the Fed increases its target rate, deposit account rates usually follow suit, and vice versa.
Earlier this year, economists expected the Fed to continue cutting rates. However, persistent inflation due to higher energy prices and geopolitical uncertainty led to a rate hike in September. Now, many banks and credit unions are raising their CD yields, with the most competitive CDs paying around 3% to 4% APY.
If you’re interested in opening a CD, it’s important to shop around rather than simply taking the CD rate offered by your current bank. Online banks tend to have some of the strongest yields out there, but it’s also a good idea to check with local banks and credit unions for competitive offers.
Keep in mind that rates could rise further, so locking all your money into a long-term CD could mean missing better opportunities later; choosing a shorter-term CD or even building CD ladder can provide more flexibility.
Read more: CD rates are going up. Here’s why — and how to find the best rates.
Is now a good time to invest in a CD?
Whether or not you should put your money in a CD depends on several factors. Earning a competitive interest rate is important, but it’s not the only consideration to keep in mind. Here’s a closer look at some of these key factors to think about:
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Interest rates: CDs are typically more attractive when interest rates are high or trending downward since they lock in the current rate for the entire term. Considering the recent trends in interest rates, it could be a good time to invest in a short-term CD of around six to 12 months. If rates do increase in the near future, a shorter term means your money won’t be tied up for years and you can take advantage of even better rates when your account matures.
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Financial goals: CDs are a safe investment choice if you’re looking to preserve capital and earn a steady return. They are insured by the FDIC up to the federal limit and can’t lose money in most cases, making them a low-risk option. That said, if you’re saving for a long-term goal like retirement, a CD may not be the best choice since market investments tend to provide higher returns, on average.
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Liquidity needs: CDs require you to lock in your money for a set period. If you think you’ll need to access your money before the term ends, you may want to avoid CDs, as they come with early withdrawal penalties. A high-yield savings account or other type of deposit account may be a better option.
Read more: How much do you need to open a CD?
Where to find the best CD rates
CDs are available from most banks. However, if you’re interested in opening a CD, it’s important to look beyond your current bank. Not all CDs offer competitive rates, even in a high interest rate environment. That’s why comparing multiple CD account options is important, especially among financial institutions that are known for offering higher rates.
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Online banks: One of the best places to find high-yield CDs is online banks. Since they are less expensive to operate than traditional brick-and-mortar banks, online banks can pass on those savings to customers in the form of lower fees and higher rates on deposits. So, if you’re interested in opening a CD with a high rate, online institutions are a great place to start.
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Credit unions: As not-for-profit financial cooperatives, credit unions tend to offer better rates and lower fees than for-profit banks. Research the local credit unions in your area, as well as online credit unions, and find out if you qualify to join any.Â
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Community banks: Local banks strive to serve their communities and often provide more affordable and personalized service than large, national banks. They also typically offer more competitive interest rates on deposits.
