CD Rate Snapshot — June 2026
The Fed funds rate sits at 3.50%–3.75% after three cuts in late 2025. CD rates have drifted lower but still offer guaranteed returns above most savings accounts. The best strategy: lock in longer terms now if you believe more cuts are coming.
Top rates by term: 3-month: 3.75% · 6-month: 3.90% · 1-year: 4.10% · 2-year: 3.90% · 5-year: 4.20%
Best 3-Month CD Rates
Short-term parking for cash you'll need soon.
| Bank | APY | Min Deposit | Early Withdrawal Penalty |
|---|---|---|---|
| Bread Savings ★ | 3.75% | $1,500 | 60 days interest |
| Marcus | 3.50% | $500 | 90 days interest |
| Ally | 3.50% | $0 | 60 days interest |
| Capital One | 3.00% | $0 | 3 months interest |
Best 6-Month CD Rates
A sweet spot between flexibility and yield.
| Bank | APY | Min Deposit | Early Withdrawal Penalty |
|---|---|---|---|
| Bread Savings ★ | 3.90% | $1,500 | 90 days interest |
| Ally | 3.75% | $0 | 60 days interest |
| Synchrony | 3.70% | $0 | 90 days interest |
| Marcus | 3.65% | $500 | 90 days interest |
Best 1-Year CD Rates
The most popular CD term — good balance of rate and commitment.
| Bank | APY | Min Deposit | Early Withdrawal Penalty |
|---|---|---|---|
| My eBanc ★ | 4.10% | $1,000 | 180 days interest |
| Bread Savings | 4.00% | $1,500 | 150 days interest |
| BTG Pactual | 3.95% | $10,000 | 180 days interest |
| Ally | 3.80% | $0 | 150 days interest |
| Marcus | 3.75% | $500 | 270 days interest |
| Synchrony | 3.70% | $0 | 180 days interest |
Best 2-Year CD Rates
Medium-term lock-in for money you won't need for a while.
| Bank | APY | Min Deposit | Early Withdrawal Penalty |
|---|---|---|---|
| Bread Savings ★ | 3.90% | $1,500 | 180 days interest |
| Ally | 3.55% | $0 | 120 days interest |
| Marcus | 3.50% | $500 | 365 days interest |
| Capital One | 3.25% | $0 | 6 months interest |
Best 5-Year CD Rates
Lock in today's rates before potential future cuts.
| Bank | APY | Min Deposit | Early Withdrawal Penalty |
|---|---|---|---|
| TAB Bank ★ | 4.20% | $1,000 | 365 days interest |
| First National Bank of America | 4.15% | $1,000 | 540 days interest |
| Bread Savings | 3.80% | $1,500 | 365 days interest |
| Ally | 3.55% | $0 | 150 days interest |
| Marcus | 3.50% | $500 | 540 days interest |
CD Laddering Strategy
Instead of locking all your money in one CD term, spread it across multiple terms. For example, divide $10,000 into five $2,000 CDs: 1-year, 2-year, 3-year, 4-year, and 5-year. Each year as one matures, reinvest it in a new 5-year CD. After 5 years, you'll have a CD maturing every year — giving you regular access to funds while earning longer-term rates.
This approach protects against rate drops (you've already locked in today's higher rates) while ensuring you always have money accessible within 12 months.
CDs vs. High-Yield Savings — Which Is Better Right Now?
In June 2026, the best high-yield savings accounts pay ~3.80%–4.03% APY with no lock-in, while the best 1-year CD pays ~4.10%. The spread is narrow. CDs make sense if you want a guaranteed rate regardless of future Fed cuts. Savings accounts make sense if you value flexibility and believe rates will hold steady.
The strongest case for CDs right now is the 5-year term at 4.20% — that locks in a rate that may not be available in 12 months if the Fed continues cutting.
Methodology
We track CD rates from online banks, national banks, and credit unions (open to general public). Rates shown are for standard CDs with the listed minimum deposit. Jumbo CD rates (typically $100K+) may differ. All institutions listed are FDIC or NCUA insured. Rates verified as of June 5, 2026.