CD accounts at America’s largest banks—ranked by FDIC data—are offering APYs up to 4.00% as of March 3, 2026. Account terms run from three months to 14 months.
For those who value familiarity over rate-chasing, opening a CD with one of these well-known banks could be the right move.
Rates accurate as of March 3, 2026.
What’s the benefit of opening a CD with a big bank?
Let’s be honest: a lot of people probably choose a bank such as Chase or Bank of America because the name is on a branch down the street. There’s nothing wrong with that. And once you dig in, you’ll find some real advantages to parking your CD at a big bank.
- Keep all your banking in one place: If your checking, savings, mortgage, or auto loan already lives at a major bank, adding a CD there keeps your financial streamlined.
- Often more CD options available: Big banks tend to have more CD terms and types on the menu, though this isn’t a hard-and-fast rule.
- Get relationship rate bumps: Some banks offer existing customers a better APY on CDs. Keep in mind, though, that these perks don’t always outshine what an online bank with rock-bottom overhead can offer. It’s worth noting that some banks like Capital One, which operate largely online, are household names that are also are known for rolling out standout CD rates.
What is a CD?
Think of a certificate of deposit (CD) as a stricter but higher-octane version of a high-yield savings account. You sacrifice some flexibility, but you’re typically rewarded with a higher interest rate.
With a CD, you’ll deposit your money, commit to a fixed term, and don’t touch the funds until the term ends. Withdrawing early means paying early withdrawal penalties. The trade for that restriction? Your interest rate is locked in, immune to whatever the broader market does during your term.
At maturity, the money’s all yours—principal plus interest earned. You can move it, spend it, or open another CD. Banks oftentimes auto-renew CDs once they mature, though there’s typically a grace period that gives you a window to decide before a new term begins.
How to choose the best CD type for you
Fixed-rate CDs are the default, but banks have created numerous specialty products to fit different needs. Some of the most common include:
- No-penalty. Pull your money early without incurring a fee, though you’ll typically earn a lower APY for the privilege.
- Bump-up. If the bank raises rates on your specific CD during your term, you can ask for the higher rate.
- Jumbo. CDs that require a large upfront deposit may offer slightly better rates.
- IRA. A retirement-focused CD that can be funded with existing IRA money or new contributions. Annual deposits of new money are capped by the IRA contribution limit ($7,000 if under 50; $8,000 if 50 or older for 2026).
- Business. A low-risk option for earning interest on company funds, available in multiple varieties.
How to choose the best CD term for you
The term you choose should be key to your CD decision. It sets the timeline for when you can get your money back without a penalty.
A long CD term has its appeal—your APY can be locked in for years at a time, protecting you if rates fall. But if they rise after you’ve committed, you’re stuck earning less. The only way out is the early withdrawal penalty, which eats into your returns.
Think about these two things:
- How long are you prepared to leave this money alone?
- What’s the APY for the term you’re considering? Different durations pay different rates.
A smart workaround is CD laddering, which gives you the best of both worlds.
What is CD laddering?
A CD ladder involves opening multiple CDs at different term lengths so they don’t all mature at once. This way, you keep some of your money accessible on a rolling basis while still earning competitive rates.
Take a $5,000 investment as an example:
- $1,250 into a 6-month CD
- $1,250 into a 12-month CD
- $1,250 into a 18-month CD
- $1,250 into a 24-month CD
Every six months, a CD matures and $1,250 (plus interest) is freed up. You can withdraw it or roll it into a fresh 24-month CD to continue the ladder.
The takeaway
When it comes to selection and brand reliability, big banks are hard to beat for CD shoppers. Just remember that their APYs may fall short of what online banks can deliver. It’s wise to do some rate comparisons first. Our post on the best certificates of deposit is a good starting point.
Frequently asked questions
Are CDs at large banks safer than CDs at smaller banks?
CDs at large banks are not really safer than CDs at smaller banks. As long as the bank is insured by the FDIC, your money is generally as safe at a small bank. If it’s a credit union, check that they’re insured by the NCUA.
How often do big-name banks change their CD rates?
Big-name banks change their CD rates regularly. You may find that some CD terms change every couple weeks—exhibiting the value of opening a long-term CD. If you see a rate that you like, best to jump on it.
Can I lose money with a CD from a big bank?
You can’t lose money with a CD from a big bank, or any bank really, in the same way that you could with a riskier investment like the stock market. That said, you might effectively “lose” money if the interest you earn is lower than the inflation rate. You won’t be able to access and reinvest your money into something more profitable until your account terms (or unless you pay fees).
Should I keep all my CDs at the same large bank or spread them around?
It’s OK to keep all your money at the same large bank as long as your deposits are covered by the FDIC. This covers up to $250,000 per account holder per ownership category. If you’ve got more than that, it’s worth spreading the money around to other banks to ensure the FDIC covers it all.
Are CD rates at big banks always lower than at smaller online banks?
CD rates at big banks are not always lower than at smaller online banks. It’s true that online banks tend to offer more consistently impressive returns than big banks due to their lack of overhead and lower operational costs. But big banks often issue a handful of APYs that rival the best rates on the market.
