If you have savings sitting in a low-interest account, a fixed deposit - known in the US as a Certificate of Deposit (CD) - could be one of the safest ways to earn significantly more on your money with zero risk to your principal. With interest rates at competitive levels in 2026, the right fixed deposit can earn 4-5% or more annually on your savings.
In this guide, we compare the banks and credit unions offering the highest interest rates on fixed deposits in 2026 - so you can put your savings to work as efficiently as possible.
What Is a Fixed Deposit (Certificate of Deposit)?
A fixed deposit (called a Certificate of Deposit or CD in the United States) is a savings account that holds a fixed amount of money for a fixed period of time - ranging from a few months to several years. In exchange for leaving your money untouched for the agreed term, the bank pays you a guaranteed, fixed interest rate higher than a regular savings account.
Key features of fixed deposits:
- Guaranteed return: Your interest rate is locked in for the full term - it won't change even if market rates fall
- FDIC/NCUA insured: Protected up to $250,000 per depositor at insured institutions
- Fixed term: Typically 3 months to 5 years
- Early withdrawal penalty: Withdrawing before maturity typically results in a penalty (usually 60-180 days of interest)
- Minimum deposit: Usually $500-$1,000, though some have no minimum
Banks with the Highest Fixed Deposit (CD) Rates in 2026
1. Bread Savings - Highest Overall CD Rates
Bread Savings (formerly Comenity Direct) consistently offers some of the highest CD rates available across multiple terms - making it the top choice for savers who want to maximize returns on fixed deposits.
- 3-Month CD: 4.75% APY
- 6-Month CD: 5.15% APY
- 1-Year CD: 5.10% APY
- 2-Year CD: 4.75% APY
- 5-Year CD: 4.50% APY
- Minimum Deposit: $1,500
- FDIC Insured: Yes
- Early Withdrawal Penalty: 180 days of interest (1 year+); 90 days (under 1 year)
Why we recommend it: Bread Savings keeps overhead low and consistently passes the savings to customers in the form of top-tier CD rates. Their 6-month and 1-year CDs regularly rank among the highest available nationwide.
2. Marcus by Goldman Sachs - Best for No-Penalty CDs
Marcus offers both traditional high-yield CDs and a unique No-Penalty CD - allowing you to withdraw your full balance without penalty after the first 7 days, combining fixed-deposit returns with savings account flexibility.
- 6-Month CD: 5.00% APY
- 1-Year CD: 5.05% APY
- 2-Year CD: 4.70% APY
- No-Penalty CD (13-Month): 4.70% APY
- Minimum Deposit: $500
- FDIC Insured: Yes
Why we recommend it: The No-Penalty CD is Marcus's standout product - you get a rate close to their traditional CDs with the ability to withdraw after 7 days without any penalty. For savers who want high returns but aren't sure they won't need the money, this is an ideal solution.
3. Synchrony Bank - Best for Long-Term CDs
Synchrony Bank offers highly competitive rates across all CD terms - particularly for longer-term deposits - with no minimum deposit requirement making it accessible to all savers.
- 3-Month CD: 4.50% APY
- 6-Month CD: 5.00% APY
- 1-Year CD: 5.00% APY
- 2-Year CD: 4.80% APY
- 5-Year CD: 4.60% APY
- Minimum Deposit: $0
- FDIC Insured: Yes
Why we recommend it: Synchrony's zero minimum deposit makes it the most accessible high-yield CD provider - you can open an account with any amount. Their bump-up CD option (available on some terms) allows you to request one rate increase if rates rise during your term.
4. Ally Bank - Best for CD Flexibility
Ally Bank offers three types of CDs - High Yield, Raise Your Rate, and No Penalty - giving savers the most flexibility in how they structure their fixed deposits.
- 3-Month CD: 4.50% APY
- 6-Month CD: 4.80% APY
- 1-Year CD: 5.00% APY
- 2-Year CD: 4.25% APY
- Raise Your Rate CD (2-Year): 4.00% APY (with one rate bump option)
- No Penalty CD (11-Month): 4.55% APY
- Minimum Deposit: $0
- FDIC Insured: Yes
Why we recommend it: Ally's Raise Your Rate CD allows you to request a rate increase once (2-year) or twice (4-year) during your term if Ally increases rates for new customers - providing protection against locking in during a rising rate environment. Their no-penalty CD adds further flexibility.
5. CIT Bank - Best for Savers with $5,000+
CIT Bank offers a tiered rate structure that rewards larger deposits - with their Platinum Savings and CD products delivering premium rates for balances of $5,000 or more.
- 6-Month CD: 5.00% APY
- 1-Year CD: 5.00% APY
- 18-Month CD: 4.80% APY
- 3-Year CD: 4.60% APY
- Minimum Deposit: $1,000
- FDIC Insured: Yes
Why we recommend it: CIT Bank's combination of competitive CD rates and a high-yield savings account makes it an excellent one-stop shop for savers - keeping some funds liquid in the savings account while locking the rest into higher-yield CDs.
6. Discover Bank - Best for Brand Recognition and CD Variety
Discover Bank offers CDs across 9 different terms - from 3 months to 10 years - with competitive rates and no minimum balance requirement.
- 3-Month CD: 4.50% APY
- 6-Month CD: 4.80% APY
- 1-Year CD: 5.00% APY
- 2-Year CD: 4.50% APY
- 5-Year CD: 4.25% APY
- 10-Year CD: 4.00% APY
- Minimum Deposit: $2,500
- FDIC Insured: Yes
Why we recommend it: Discover's 10-year CD - rare in the market - allows savers to lock in current rates for a decade, providing protection against future rate declines. Their exceptional customer service and established brand make them a trusted choice for conservative savers.
7. Alliant Credit Union - Best Credit Union CD Rates
Alliant Credit Union - one of the largest credit unions in the US - offers competitive CD (called Share Certificates) rates with the member-owned advantages of credit union banking.
- 1-Year Share Certificate: 4.85% APY
- 2-Year Share Certificate: 4.60% APY
- 3-Year Share Certificate: 4.50% APY
- 5-Year Share Certificate: 4.35% APY
- Minimum Deposit: $1,000
- NCUA Insured: Yes
Why we recommend it: Credit unions return profits to members rather than shareholders - often resulting in better rates and lower fees. Alliant's digital tools are among the best in the credit union space, providing the online convenience of a bank with credit union benefits.
8. Popular Direct - Best Short-Term CD Rates
Popular Direct consistently offers top-tier rates for short-term CDs - particularly 3 and 6-month terms - making it ideal for savers who want high returns without a long commitment.
- 3-Month CD: 5.10% APY
- 6-Month CD: 5.20% APY
- 1-Year CD: 5.05% APY
- 3-Year CD: 4.50% APY
- Minimum Deposit: $10,000
- FDIC Insured: Yes
Why we recommend it: Popular Direct's 6-month CD rate of 5.20% APY is among the highest available for any CD term in 2026. The higher $10,000 minimum is offset by the exceptional rate - savers with larger balances who can commit for 6 months will find it hard to beat.
9. Barclays Bank - Best for Online CD Experience
Barclays offers straightforward online CDs with competitive rates, no minimum deposit, and an exceptionally clean digital banking interface.
- 6-Month CD: 4.80% APY
- 1-Year CD: 5.00% APY
- 2-Year CD: 4.40% APY
- 5-Year CD: 4.25% APY
- Minimum Deposit: $0
- FDIC Insured: Yes
Why we recommend it: Barclays' zero minimum deposit and clean online interface make it ideal for first-time CD investors. Their competitive rates across multiple terms allow savers to build a CD ladder without a large initial commitment.
10. Pentagon Federal Credit Union (PenFed) - Best for Jumbo CDs
PenFed offers Money Market Certificates (their equivalent of CDs) with premium rates for larger deposits - and membership is now open to anyone in the US.
- 1-Year Certificate: 4.90% APY
- 2-Year Certificate: 4.60% APY
- 3-Year Certificate: 4.45% APY
- 5-Year Certificate: 4.35% APY
- Minimum Deposit: $1,000 (standard); $100,000 (Jumbo rates)
- NCUA Insured: Yes
Why we recommend it: PenFed's Jumbo Certificate rates provide premium yields for savers with $100,000+ to invest. Membership is open to all US residents - a change from PenFed's previously restricted military-only membership - making these competitive rates widely accessible.
What Is a CD Ladder and Should You Use One?
A CD ladder is a strategy where you divide your savings across multiple CDs with different maturity dates - giving you regular access to portions of your money while still earning high fixed rates.
Example - $20,000 CD Ladder:
- $4,000 in a 1-year CD at 5.00%
- $4,000 in a 2-year CD at 4.75%
- $4,000 in a 3-year CD at 4.60%
- $4,000 in a 4-year CD at 4.50%
- $4,000 in a 5-year CD at 4.50%
Each year, one CD matures - giving you access to $4,000 or the option to reinvest at current rates. This strategy provides liquidity, diversification across rate environments, and consistently high returns.
Fixed Deposit vs. High-Yield Savings Account
- Fixed Deposit (CD): Locked rate for fixed term. Higher rates than savings accounts. Early withdrawal penalty. Best when you won't need the money for the full term.
- High-Yield Savings Account: Variable rate that can change anytime. Fully liquid - withdraw anytime. Slightly lower rates. Best for emergency funds or money you might need soon.
Use both strategically: keep 3-6 months of expenses in a high-yield savings account for emergencies, and put additional savings into CDs for higher guaranteed returns.
Frequently Asked Questions
Which type of CD offers the highest interest rate?
In 2026, short-term CDs (6 months to 1 year) are offering the highest rates - often 5.00-5.20% APY. This is known as an "inverted yield curve" - where short-term rates exceed long-term rates. Longer-term CDs (3-5 years) typically offer slightly lower rates (4.25-4.75%) but provide the benefit of locking in today's competitive rates for a longer period if you believe rates will fall in the future.
Is a fixed deposit safe?
Yes - fixed deposits (CDs) at FDIC-insured banks or NCUA-insured credit unions are among the safest investments available. Your principal and interest are guaranteed up to $250,000 per depositor, per institution. Unlike stocks or bonds, a CD cannot decrease in value. The only financial risk is the opportunity cost of locking in a rate if market rates rise significantly after you open the CD - which is why CD ladders and no-penalty CDs are popular risk management strategies.
What happens when a CD matures?
When a CD reaches its maturity date, you have a grace period (typically 7-10 days) to decide what to do with the funds. Your options are: withdraw the full amount (principal + interest), reinvest in a new CD at current rates, or transfer to a savings account. If you don't take any action during the grace period, most banks automatically renew the CD for the same term at current rates - which may be higher or lower than your original rate. Set a calendar reminder before your CD matures to evaluate your options.
Can I add money to a CD after opening it?
Standard CDs don't allow additional deposits after opening. However, "add-on CDs" - offered by some banks and credit unions - allow you to deposit more money into an existing CD during the term. Add-on CDs typically offer slightly lower rates than standard CDs in exchange for this flexibility. If you want to invest additional savings at high fixed rates after opening a CD, the simplest approach is to open a new CD for the additional amount.
How is CD interest taxed?
CD interest is taxed as ordinary income in the year it is earned - even if you don't withdraw it. Your bank will send you a 1099-INT form at tax time showing the interest earned. To minimize taxes on CD interest, consider holding CDs in a tax-advantaged account like a Roth IRA or traditional IRA - where interest grows tax-free (Roth) or tax-deferred (traditional). CD interest rates displayed as APY are before-tax figures; your after-tax return depends on your income tax bracket.
Final Thoughts
With CD rates at their highest levels in over a decade, 2026 is an excellent time to lock in guaranteed returns on your savings. Whether you choose the highest-rate short-term CD from Bread Savings or Popular Direct, the flexibility of Marcus's No-Penalty CD, or the diversification of a CD ladder across multiple institutions, fixed deposits offer something rare in investing - a guaranteed return with zero risk to your principal.
The best strategy: keep your emergency fund liquid in a high-yield savings account, and move any savings you won't need for 6-24 months into a high-rate CD to earn the maximum guaranteed return on your money.
Looking to make the most of your savings? Check out our guides on best high-yield savings accounts, investing for beginners, and retirement planning strategies.
