Top CD rates by term: early October 2026 snapshot
These are the highest nationally available rates listed for each term in Bankrate's and NerdWallet's tables, with APYs as of October 9–11, 2026. All issuers are FDIC-insured banks except Quorum, a federally insured credit union.
| Term | Institution | APY | Minimum deposit |
|---|---|---|---|
| 3 months | Popular Direct | 4.30% | $10,000 |
| 6 months | Quorum Federal Credit Union | 4.40% | $100 |
| 1 year | E*TRADE (Morgan Stanley Private Bank) | 4.75% | $0 |
| 18 months | Bread Savings | 4.75% | $1,500 |
| 2 years | Barclays | 4.75% | $0 |
| 3 years | Popular Direct | 4.85% | $10,000 |
| 4 years | BTG Pactual Bank | 4.55% | $500 |
| 5 years | Popular Direct | 5.00% | $10,000 |
Source: Bankrate CD rate table, APYs as of Oct. 11, 2026; 18-month row from NerdWallet (APYs as of Oct. 9, 2026), which also listed the same 1-year, 3-year and 5-year leaders. Rates change frequently.
Big-name online banks were lower. Marcus by Goldman Sachs listed a 1-year CD at 4.40% APY with a $500 minimum (as of October 6). Ally's High Yield CDs paid 2.8% on some terms (as of October 5). Popular Direct's top rates need $10,000 to open, so if you have less, look at the $0- and $500-minimum options.
How far above average these rates are
| Term | Bankrate survey average (Oct. 11) | FDIC national rate (Sept. 2026) | Top rate in snapshot |
|---|---|---|---|
| 1 year | 2.13% | 1.73% | 4.75% |
| 3 years | 1.74% | 1.36% | 4.85% |
| 5 years | 1.80% | 1.38% | 5.00% |
Source: Bankrate weekly survey of up to 1,200 banks and credit unions; FDIC national rates (deposit-weighted averages) via FRED and The College Investor.
On $10,000 for one year, 4.75% APY earns $475. The 2.13% survey average earns $213. That $262 gap is the cost of leaving a CD to auto-renew at a bank that pays the average.
How the September 2026 Fed hike affects CD rates
On September 16, 2026, the Federal Reserve raised its target range by a quarter point to 3.75%–4.00%. It was the first increase since 2023. Banks are not required to follow the Fed, but competitive CD rates usually move in the same direction.
The effect showed up quickly. On September 23, the top 12-month CDs listed by The College Investor paid about 4.35%. By October 9–11, the leading 1-year rate in both Bankrate's and NerdWallet's tables was 4.75%. Bankrate's 1-year average rose from 2.09% on September 27 to 2.13% on October 11.
Bankrate notes that the Fed may raise rates again later in 2026, depending on inflation and other factors. The next meetings are October 27–28 and December 8–9. Nobody knows the outcome in advance. Here is how that uncertainty shapes your choice:
- If you expect further hikes, shorter CDs (3 to 12 months) or a bump-up CD let you reinvest at higher rates later.
- If you want certainty, a 3- to 5-year CD locks in today's rate even if the Fed later cuts.
- A ladder (below) splits the difference so you don't have to guess.
Bankrate notes that 1-year averages have been higher than 5-year averages since February 2023. In the top-rate table, the extra yield for going from 1 to 5 years was only 0.25 percentage point.
Early withdrawal penalties: read these before you buy
A CD penalty is usually a set number of days' or months' interest. If you withdraw early before you have earned that much interest, the bank can take the rest from your principal. Ally, for example, deducts the penalty from accrued interest first and then from principal if necessary.
| Bank | 1-year CD | 5-year CD |
|---|---|---|
| Ally Bank | 60 days' interest | 150 days' interest |
| Marcus by Goldman Sachs | 90 days' interest | 180 days' interest |
| Capital One | 3 months' interest | 6 months' interest |
| Citibank | 90 days' interest | 180 days' interest |
| American Express | 270 days' interest | 540 days' interest |
| Popular Direct | – | 2 years' interest |
| E*TRADE | Up to 15 months' interest, depending on term | |
Source: Ally CD help page; NerdWallet CD early withdrawal penalty guide (updated May 18, 2026) and best CD rates page (Oct. 9, 2026). Confirm in the account agreement.
The spread is wide. Breaking a $10,000 1-year CD at 4.40% with a 90-day penalty costs about $108. Breaking a $10,000 5-year CD at 5.00% with a two-year penalty costs about $1,000. The highest rate is not always the best deal if there is any chance you will need the money.
Other terms to check: Ally does not allow partial early withdrawals, and most banks give a short grace period at maturity (10 days at Ally) before the CD renews automatically.
CD vs. high-yield savings vs. Treasuries
| Option | Early Oct. 2026 yield | Rate locked? | Access to money | Taxes |
|---|---|---|---|---|
| Top 6-month CD | 4.40% APY | Yes | Penalty to withdraw early | Federal and state |
| Top 1-year CD | 4.75% APY | Yes | Penalty to withdraw early | Federal and state |
| High-yield savings (non-promo) | 4.00%–4.09% APY | No, variable | Any time | Federal and state |
| 26-week Treasury bill | 4.314% | Yes | Sell before maturity at market price | Federal only |
| 52-week Treasury bill | 4.616% | Yes | Sell before maturity at market price | Federal only |
Source: Bankrate (CDs, Oct. 11); CNBC Select (Live Oak and Vio savings, early Oct.); Treasury auction investment rates via tftc.io (26-week Oct. 5, 52-week Sept. 29, 2026); Treasury tax guidance.
Treasury interest is exempt from state and local income tax. CD and savings interest is not. If you live in a state with a 5% income tax, a 4.40% CD is worth about 4.18% after state tax, which is less than a 4.314% six-month bill. In a state with no income tax, the CD comes out ahead. The FDIC national savings average was only 0.37% in September 2026, so any of these choices beats a typical savings account.
CD interest is taxable each year as it is credited, and banks send Form 1099-INT for $10 or more. T-bill interest is reported in the year the bill matures or is sold. For money you may need at short notice, see our guides to high-yield savings accounts and money market accounts.
Special CD types
No-penalty CDs
These let you take your money out before maturity without paying a penalty. You give up yield for that flexibility. Ally's 11-month No Penalty CD paid 2.8% on October 5, and NerdWallet listed Synchrony's 11-month no-penalty CD at 0.25%. Both were below many no-fee high-yield savings accounts, so compare before you choose one.
Bump-up and raise-your-rate CDs
These let you request a higher rate if the bank raises its rates during the term. That feature is worth more when hikes are possible. NASA Federal Credit Union listed 2-year and 3-year bump-up CDs at 4.30% and 4.35% ($1,000 minimum), and Ally's Raise Your Rate 2- and 4-year CDs paid 3%. Compare the starting rate with a standard CD. A bump-up that starts well below the market may never catch up.
Brokered CDs
Brokerages such as Schwab, Vanguard, Fidelity and E*TRADE sell CDs issued by many banks, usually with a $1,000 minimum. They carry FDIC insurance from the issuing bank, up to $250,000 per depositor per bank. There is no early withdrawal penalty. Instead, you sell on the secondary market, and if rates have risen since you bought, you may get less than you paid. Schwab, for example, charges $1 per $1,000 for secondary sales ($10 minimum, $250 maximum). Some brokered CDs are callable, which means the bank can redeem them early, usually after rates fall. Interest is normally paid into your brokerage account rather than compounding.
Building a CD ladder
A ladder spreads your money across several maturities so part of it comes due regularly. With $20,000:
- Put $4,000 each into 1-, 2-, 3-, 4- and 5-year CDs.
- When the 1-year CD matures, reinvest it in a new 5-year CD (or take the cash if you need it).
- Repeat each year. After four years, every rung is a 5-year CD, and one matures every 12 months.
A ladder gives you yearly access to part of your money and avoids betting everything on one rate. If rates climb, each maturing rung renews higher. If they fall, the longer rungs keep their locked rates. For goals with a fixed date, such as a down payment in 18 months, a single CD that matures just before the date may be simpler. If you are still building savings, start with an emergency fund in an account you can tap at any time.
How to compare CDs
- Compare APY, not the interest rate. APY includes compounding.
- Check the minimum. Several top rates need $10,000. Others start at $0.
- Read the penalty in days of interest and estimate the dollar cost if you had to break the CD halfway through.
- Know what happens at maturity. Set a reminder for the grace period so the CD doesn't roll into a lower rate.
- Stay within insurance limits. FDIC and NCUA cover up to $250,000 per depositor, per ownership category, per institution.
- Look at credit unions. Some top rates, such as Quorum's 6-month CD, come from credit unions. You must become a member first, so check eligibility.
Shopping for a shorter term only? Our 1-year CD guide goes deeper on 12-month options.
Frequently asked questions
What is a good CD rate right now?
In early October 2026, top nationally available CDs paid about 4.3% to 5.0% APY depending on term, including 4.75% on a 1-year CD at E*TRADE and 5.00% on a 5-year CD at Popular Direct (as of Oct. 11). The FDIC national rate for a 12-month CD was 1.73%. Rates change often, so confirm on the bank's site.
Will CD rates keep rising after the September 2026 Fed hike?
Competitive CD rates usually move in the same direction as the Fed. The Fed raised its target range to 3.75%–4.00% on Sept. 16, 2026, and Bankrate notes it may raise rates again later in 2026, but future decisions are not certain. Shorter terms, bump-up CDs or a ladder reduce the risk of locking in too early.
What happens if I withdraw from a CD early?
You usually pay a penalty equal to a set amount of interest, such as 90 days at Marcus on a 1-year CD or two years' interest at Popular Direct on a 5-year CD. If you haven't earned enough interest yet, the penalty can come out of your principal.
Are CDs better than Treasury bills?
It depends on taxes and timing. In early October 2026 a top 6-month CD paid 4.40% APY and a 26-week bill about 4.31%. Treasury interest is exempt from state and local income tax, so in a state with a 5% income tax the bill comes out ahead; in a state with no income tax the CD does.
Are CDs insured?
Yes. CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to $250,000 per depositor, per ownership category, per institution. Brokered CDs are insured through the issuing bank.
What is a CD ladder?
A ladder splits your money across CDs with staggered maturities, such as $4,000 each in 1- to 5-year CDs. One CD matures every year, which gives you regular access to cash and lets you reinvest at current rates.
Sources
- Bankrate – Best CD rates (APYs as of Oct. 11, 2026)
- Bankrate – Current CD rates for October 2026
- NerdWallet – Best CD rates (Oct. 9, 2026)
- NerdWallet – CD early withdrawal penalties by bank
- Ally Bank – CD help and early withdrawal penalties
- Ally Bank – Bank accounts and rates
- Bankrate – Marcus by Goldman Sachs review
- Bankrate – What are brokered CDs?
- FRED / FDIC – National Rate: 36 Month CD
- FRED / FDIC – National Rate: 60 Month CD
- The College Investor – Best 12-month CD rates (Sept. 23, 2026)
- Federal Reserve – Implementation note (Sept. 16, 2026)
- TFTC – Treasury bill auction rates
- U.S. Treasury – Treasury securities tax information
- FDIC – Understanding deposit insurance
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.