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Banks are fighting for customer dollars right now, and people with cash to spare are well-positioned to benefit from a high rate environment. With rates rapidly changing, how can you feel confident that you're getting the best CD rate?
We monitor CDs from over a dozen banks and credit unions daily to help you feel confident before you open a CD. Here are the top CD rates for popular terms on Saturday, August 26.
Many of the best CD rates right now are offered by credit unions rather than banks. Don't let this scare you — all of the credit unions on our list have easy qualification standards that most people can meet. If you're looking for more CD options, check out our guides to individual CD terms in the sections below.
| Term | Rate | Where to Find It |
| No penalty | 5.30% APY | Ponce Bank, Powered by Raisin |
| 6-Month | 5.56% APY | TotalDirectBank |
| 1-Year | 5.65% APY | TotalDirectBank |
| 2-Year | 5.27% APY | Pelican State Credit Union |
| 3-Year | 5.13% APY | US Senate Federal Credit Union |
| 5-Year | 4.67% APY | Department of Commerce Federal Credit Union |
Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.
Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.
The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.
The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses.
The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.
The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.
The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.
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