Best CD rates on Jan. 5, 2026: Earn up to 4.18% APY if you lock in now

With the Federal Reserve having reduced its benchmark federal funds rate three times in 2025 and many banks cutting their CD and savings interest rates in response, investing in CDs now while rates are still relatively high could be a smart move.

Right now, the CD with the highest annual percentage yield on our list is the 3-month CD from Citibank, earning 4.18%. Some savers may prefer to look at the 6-month CD from Northern Bank Direct with its 4.15% APY as the rates Citi offers on its CDs can vary based on your location.

Below, you’ll find a list of CDs with terms ranging from 1 month to 10 years, curated in partnership with financial services data company Curinos to help you make the most informed decision possible for your situation.

Best CD rates on January 5, 2026

Here are the highest CD rates as of Jan. 5, 2026:

The best CD rates on January 5, 2026 by term

What the Fortune/Curinos partnership means for your CD strategy

Fortune has partnered with Curinos, a firm with decades of experience in financial data and analytics, to compile the highest CD APYs on the market. We receive a daily report from Curinos with CD yields from a wide range of financial institutions. Using those reports, we compile a list of CDs that can help you earn a generous amount of interest no matter what term length you need.

Pro tip

Looking for the best CD to fit your investment needs? See rates from top institutions:
–Wells Fargo
–Capital One
–Chase
–Bank of America
–Discover Bank
–Northern Bank Direct
–Ally Bank
–Newtek Bank
–Popular Direct
–Citibank
–Sallie Mae Bank

How much interest could you earn with a CD?

How much interest your CD will earn depends on factors such as your initial deposit amount, the term length, the APY, and how often your interest compounds. Here are a few estimates to help you understand different scenarios and why seeking out a CD with a high APY is worth your time. These hypotheticals assume an initial deposit of $5,000 and monthly compounding.

As you can see, shopping around for the highest CD rate for the term you need could potentially help you net hundreds of dollars in interest earned compared to just opening a low-APY CD at your main brick-and-mortar bank.

Historical CD rates

In the early 1980s, CD rates soared into the double digits, a sharp contrast to lower yields in 2025. By 2019, however, the APY for a five-year CD was only a hair above 3.00%.

Throughout the early 2020s, rates soared over 5.00% as the economy worked its way through the Covid-19 pandemic. Five years later, we find many CD rates hovering 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 stands at 3.50%-3.75%. The Federal Open Market Committee (FOMC) meets eight times per year, and its next meeting is slated for Jan. 27-28.

Seasoned investors know that CD market rates closely track the monetary policy decisions of the Federal Reserve, particularly changes in the fed funds rate. That benchmark rate is what banks charge each other to borrow money overnight.

To sum it up briefly, the Fed often reduces the federal funds rate when it wants to make borrowing cheaper, and hikes it to make borrowing more expensive. For example, the central bank cut this rate to effectively zero during the coronavirus pandemic in an effort to stave off recession. Then, as inflation and dramatically increasing prices became the more prominent concern, the Fed hiked rates repeatedly.

How to choose the best CD for you

The first factor you’ll need to consider is how long you’re comfortable locking your money away for, as most CDs charge early withdrawal penalties. You may oftentimes be able to score a higher APY with, say, a six-month CD compared to a 10-year CD. However, the latter protects you longer against banks reducing their interest rates if and when the Fed cuts its benchmark rate.

When searching for the highest APY on the market, consider that online-only institutions are likely to offer higher yields than those maintaining brick-and-mortar branches. That’s because online banks and credit unions can avoid a lot of the overhead that keeping up physical branches requires, and can pass on the savings to customers in the terms of better interest rates.

Some key factors to evaluate when comparing CDs include:

• Term length. Ensure it aligns with your savings objectives and time frame.
• APY. The traditional wisdom has been that higher rates are offered for longer terms. But that’s not what we’ve seen in the marketplace over recent months. 
• Minimum deposit. Confirm that you can meet the required initial balance.
• Penalties. Understand the costs associated with early withdrawal before maturity.
• Deposit insurance. Verify that the bank is insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) to keep your money secure.

When to consider a high-yield savings account instead

If you’re willing to accept that financial institutions can change your savings account APY at more or less any moment, while CDs offer a guaranteed rate for the account term, a high-yield savings account offers more liquidity. For money you need to access on short notice, such as an emergency fund, a HYSA is likely the better choice.

Plus, the right savings account may offer rates on par with or even surpassing what you might get with a CD. It’s currently possible to get APYs between 4.00% and 5.00% with some of the best high-yield savings accounts on the market.

In many cases, the highest savings account rates will come from online banks—for the same reasons we outlined earlier that online institutions may offer higher CD yields than brick-and-mortar banks.