Best CD rates on Jan. 1, 2026: Earn up to 4.18% APY if you lock in now

Alongside three Federal Reserve cuts to the federal funds rate in 2025, many financial institutions reduced their CD and savings rates. Still, CD rates remain reasonably attractive, and locking in a CD now ahead of any future Fed rate reductions is probably a smart way to ensure your money works for you for months or years to come.

The highest rate on our list is the 3-month CD from Citibank, which yields 4.18%. But, know that the APY Citi offers on its CDs can vary based on your location, so some savers may prefer the 6-month CD from Northern Bank Direct with its 4.15% APY.

We’ve curated a selection of CDs ranging from 1 month to 10 years in term length, in collaboration with financial data and analysis company Curinos, to make sure you can find the best deposit account for your financial needs.

Best CD rates on January 1, 2026

Here are the highest CD rates as of Jan. 1, 2026:

The best CD rates on January 1, 2026 by term

What the Fortune/Curinos partnership means for your CD strategy

Fortune partners with Curinos, a company with deep expertise in financial data and analytics, to identify the highest-earning CDs on the market. Through Curinos’ daily data reports, we review current CD rates from many different financial institutions nationwide. We leverage this information to present our readers a list of CDs that deliver compelling interest rates for a variety of terms.

How much interest could you earn with a CD?

The total interest you’ll earn over the life of your CD depends on a few elements, including: how much you initially deposit, the term you select, what APY you receive, and how frequently your interest compounds. 

To show the difference a good APY makes, we’ve run a few estimates below. For the sake of these hypotheticals, we’re assuming a $5,000 deposit and monthly compounding.

Term	APY	Estimated Interest
1 year	1.64%	$82.62
1 year	4.00%	$203.71
5 years	1.34%	$346.28
5 years	3.80%	$1,044.43

1 year
APY	1.64%
Estimated Interest	$82.62
1 year
APY	4.00%
Estimated Interest	$203.71
5 years
APY	1.34%
Estimated Interest	$346.28
5 years
APY	3.80%
Estimated Interest	$1,044.43

As you can see from the estimated earnings shown above, taking a little time to shop around for high CD rates for the term you need can make a huge difference compared to just accepting whatever the standard rate is at your existing brick-and-mortar bank.

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Historical CD rates

In the 1980s, CD yields reached double digits—a far cry from current rates. By 2019, the typical five-year CD rate had dropped to slightly over 3.00%.

Rates accelerated beyond 5.00% in the 2020s’ early years as the economy rebounded from the Covid-19 downturn. But now, several years later, we see rates more typically in the 3.00%-4.00% range.

Here’s a look at how CD rates for various terms fluctuated over the course of 2025, according to FDIC numbers. Note that on our list, you’ll find typically rates much higher than the average yield for any given term.

Why the federal funds rate matters for CD yields

As of this writing, the federal funds rate is set at 3.50%-3.75%. The Federal Open Market Committee (FOMC) meets eight times each year, and the upcoming meeting is scheduled for Jan. 27-28.

Those with experience in the market know that the rates paid on CDs oftentimes move alongside Federal Reserve policy choices, most prominently cuts or hikes to the federal funds rate. This benchmark rate is the overnight lending rate between banks.

Essentially, the Fed lowers the federal funds rate to make borrowing cheaper and raises it to make borrowing more expensive. As one recent example, the Fed cut this rate to effectively  zero during the coronavirus crisis to help stave off recession. Later, with inflation the dominant economic concern, the Fed hiked the federal funds rate several times.

How to choose the best CD for you

Start by determining how long you can realistically lock away your funds, since withdrawing from a CD before maturity typically results in penalties. You could qualify for a stronger APY with a medium-term CD—a six-month option, for instance—than you would with an extended-term product like a 10-year CD. Nevertheless, longer-duration CDs shield you from the impact of future rate decreases in the event the Fed reduces its key rate.

When shopping for the marketplace’s highest APY, note that banks operating exclusively online frequently provide superior yields to their brick-and-mortar competitors. Online banks and internet-based credit unions eliminate the expense burden of maintaining physical branch locations, creating an opportunity to provide enhanced rates to their customer base.

Key evaluation points for choosing a CD:

• Time frame. Pick a term that fits your financial timeline and goals, where you won’t be spreading yourself thin by not being able to access these funds
• APY. While historical wisdom suggests higher rates are the reward for longer periods, the recent market hasn’t followed this pattern.
• Opening balance. Some institutions offer CDs with no minimum deposit requirement or a relatively accessible minimum such as $500. Others may require something like $1,500 or even more. Pick a bank where the minimum deposit is something that works for your finances.
• Withdrawal penalties. Understand the cost of accessing your money early in case you unexpectedly need to withdraw the funds before the CD fully matures.
• Protection. Ensure the institution is backed by FDIC or NCUA insurance for deposit safety.

When to consider a high-yield savings account instead

If you accept that savings account APYs can change at the bank’s discretion, unlike CDs which ensure a fixed rate throughout your account term, high-yield savings accounts offer the advantage of being able to withdraw your funds when you need them. For money you expect to need to tap into quickly—for example, your emergency fund—a HYSA is going to be preferable to a CD

Besides, the best high-yield savings accounts out there sometimes provide rates roughly equivalent to or even surpassing those of CDs. In the current market, some high-yield savings accounts offer APYs in the 4.00%-5.00% range.

The most competitive savings account rates will in many instances come from online banks—reflecting the same efficiencies that allow online institutions to provide customers with stronger CD rates compared to brick-and-mortar banks.