Best CD Rates of October 2026

The best CD rates we found this month top out at 5.00% APY, on a 5-year CD at Popular Direct. It also had the top rate at 6 months (4.35% APY) and at 1 year (4.50% APY). The catch? You need $10,000 to open one.

Don't have $10,000 to lock up? Bread Savings pays 4.45% APY on a 1-year CD with a $1,500 minimum, and Marcus pays 4.40% with $500. Synchrony has no minimum at all and pays 4.10% APY on 6 months.

A CD is for money you know you won't need until a certain date. The rate is locked, and so is your cash. If there's a chance you'll need it sooner, you're better off with one of the best high-yield savings accounts.

We read every rate on this page on the bank's or credit union's own site on October 13, 2026. Banks change CD rates whenever they want, so look at the bank's page before you open anything.

The 8 we compared, ranked by 1-year rate

Popular Direct

Highest rates, $10,000 minimum

4.50%APY1-year CD, $10,000 minimum

See details

Bread Savings

Best rates with less than $10,000

4.45%APY1-year CD, $1,500 minimum

See details

Marcus by Goldman Sachs

Best with $500, and the best no-penalty CD

4.40%APY1-year CD, $500 minimum

See details

Sallie Mae Bank

Lighter penalty on long terms

4.40%APY1-year CD, $2,500 minimum

See details

Synchrony Bank

Best with no minimum deposit

4.20%APY1-year CD, no minimum

See details

Navy Federal Credit Union

Best for military families

4.05%APY1-year CD, $1,000 minimum

See details

Capital One 360 CDs

Best 11-month special

4.00%APY1-year CD, no minimum

See details

CIT Bank

1-year and no-penalty CDs from $1,000

4.00%APY1-year CD, $1,000 minimum

See details

CIT Bank APYs are accurate as of July 1, 2026. See disclosures below.

Best CD rates by term

Here are the three highest rates we could confirm at each term. The penalty column is what each bank says it charges if you take your money out before the term ends.

Two ties to know about. Sallie Mae Bank also pays 4.40% APY on a 1-year CD, with a $2,500 minimum. And Synchrony Bank also pays 4.50% APY on a 5-year CD with no minimum, though its penalty at that term is 365 days of simple interest. Popular Direct's own page dates its rates October 5, 2026.

Best no-penalty CD rates

A no-penalty CD lets you take everything out early without paying for it. You get a lower rate in return. These are the ones we could confirm.

Is the escape hatch worth it? At Marcus, the 11-month no-penalty CD paid 4.00% APY and the regular 12-month CD paid 4.40%. So you give up 0.40 of a point to keep the exit open. On $10,000 that's roughly $40 over a year.

If there's a real chance you'll need the money, that's cheap insurance. If there isn't, take the higher rate.

1. Popular Direct

Highest rates, $10,000 minimum

1-year CD APY4.50%

Minimum deposit$10,000

Penalty, 1-year CD270 days of simple interest

Other terms (APY)

• 6-month 4.35%
• 18-month 4.65%
• 2-year 4.70%
• 3-year 4.85%
• 4-year 4.95%
• 5-year 5.00%

Popular Direct had the highest rate at every term in our table. That doesn't happen often, and it's why it's first.

There are two catches. The minimum is $10,000, and you have to keep that balance in the CD. And the penalties for leaving early are the stiffest on this page.

Break a 1-year CD and you give up 270 days of simple interest. On the 5-year CD it's 730 days, which is two full years of interest. On $10,000 at its 4.880% interest rate, that works out to about $976.

Bottom line: it's a great pick if you have $10,000 and you're sure you won't touch it. Any doubt at all? Go with a bank that has a lighter penalty.

Popular Direct is the online arm of Popular Bank, Member FDIC. Its page dates these rates October 5, 2026.

See Popular Direct CD rates

2. Bread Savings

Best rates with less than $10,000

1-year CD APY4.45%

Minimum deposit$1,500

Penalty, 1-year CD180 days of simple interest

Other terms (APY)

• 6-month 4.05%
• 9-month 4.40%
• 18-month 4.75%
• 2-year 4.45%
• 3-year 4.50%
• 4-year 4.55%
• 5-year 4.60%

Don't have $10,000? Start here. Bread Savings had the top 18-month rate we found at 4.75% APY, and it was second at 1 year, 3 years and 5 years.

The minimum is $1,500 for each CD. There's no monthly maintenance fee, and interest compounds daily.

The penalties are middle of the pack: 90 days of simple interest on terms shorter than 1 year, 180 days on terms of 12 months to 3 years, and 365 days on 4 years and up.

One thing to know. A Bread Savings CD renews automatically when it matures, so put the date in your calendar.

Bread Savings is part of Bread Financial, and deposits are FDIC insured through Comenity Capital Bank.

See Bread Savings CD rates

3. Marcus by Goldman Sachs

Best with $500, and the best no-penalty CD

1-year CD APY4.40%

Minimum deposit$500

Penalty, 1-year CD90 days of interest

Other terms (APY)

• 6-month 3.95%
• 9-month 4.30%
• 18-month 4.40%
• 2-year 4.40%
• No-penalty 11-month 4.00%

Marcus pays 4.40% APY on 12 months, 18 months and 2 years, and you only need $500 to open one.

It also has a 10-day rate guarantee. Put at least $500 in during the first 10 days, and if Marcus raises the rate on your term in that window, you get the higher rate automatically.

The penalty is 90 days of interest on terms of 1 year or less and 180 days on terms over 1 year, up to 5 years.

Want a way out? Marcus had the best no-penalty CD we found, at 4.00% APY for 11 months. You can pull your full balance starting 7 days after you fund it.

Marcus sells CDs out to 6 years. We could only read its rates through 2 years, so the longer ones aren't listed here. Deposits are with Goldman Sachs Bank USA, Member FDIC.

See Marcus CD rates

4. Sallie Mae Bank

Lighter penalty on long terms

1-year CD APY4.40%

Minimum deposit$2,500

Penalty, 1-year CD90 days of simple interest

Other terms (APY)

• 6-month 3.20%
• 11-month 4.10%
• 18-month 4.40%
• 2-year 4.40%
• 3-year 4.45%
• 5-year 4.50%

Yes, the student loan company. Sallie Mae Bank takes deposits too, and its CD rates are strong from 1 year on up.

The real reason to look here is what it costs to get out of a long CD. Any term over 12 months costs you 180 days of simple interest. On a 5-year CD, Bread Savings and Synchrony charge 365 days and Popular Direct charges 730.

Skip the short terms, though. Its 6-month CD paid 3.20% APY when we checked.

You need $2,500 to open one, and you have to keep at least that much in it to earn interest.

At maturity you get a 10-day grace period to move the money. Do nothing and it renews for the same term. Sallie Mae CDs are FDIC-insured.

See Sallie Mae CD rates

5. Synchrony Bank

Best with no minimum deposit

1-year CD APY4.20%

Minimum depositNone

Penalty, 1-year CD90 days of simple interest

Other terms (APY)

• 6-month 4.10%
• 9-month 4.15%
• 13-month 4.40%
• 18-month 4.35%
• 2-year 4.35%
• 3-year 4.40%
• 5-year 4.50%

Synchrony has no minimum deposit, so you can open a CD with whatever you've got.

Look at the 13-month CD before you pick the 12-month. It paid 4.40% APY against 4.20%, and all it costs you is one more month.

Its 6-month CD paid 4.10% APY, the second best 6-month rate we found. The 5-year paid 4.50%.

Leaving early costs 90 days of simple interest on terms of 12 months or less, 180 days on terms over 12 months but under 48, and 365 days on 48 months or more. You can take out interest that's already been paid without a penalty.

Synchrony Bank is a Member FDIC.

See Synchrony CD rates

6. Navy Federal Credit Union

Best for military families

1-year CD APY4.05%

Minimum deposit$1,000

Penalty, 1-year CDPenalties apply, amount not listed

Other terms (APY)

• 18-month 4.10%
• 2-year 3.66%
• 3-year 4.10%
• 5-year 3.85%
• Special EasyStart 12-month 4.35%

Navy Federal is a credit union, so its CDs are called certificates and you have to be a member to open one. Membership is open to the armed forces, the DoD, veterans and their families.

If that's you, the one to know about is the Special EasyStart Certificate. It pays 4.35% APY for 12 months and opens with $50. It maxes out at $3,000, and you need a Navy Federal checking account with direct deposit.

Standard certificates take $1,000 and paid 4.05% APY on 12 months and 4.10% on 18 months and 3 years.

Navy Federal's rate page says penalties apply to early withdrawals but doesn't list the amount. Ask before you open one.

Your money here is insured by the NCUA, not the FDIC. The coverage limit is the same.

See Navy Federal certificate rates

7. Capital One 360 CDs

Best 11-month special

1-year CD APY4.00%

Minimum depositNone

Penalty, 1-year CD3 months of interest

Other terms (APY)

• 6-month 3.30%
• 9-month 3.75%
• 11-month 4.40%
• 18-month 3.60%
• 2-year 3.50%
• 3-year 3.50%
• 5-year 3.60%

Most of Capital One's CD rates trail the leaders. The exception is its 11-month special at 4.40% APY, and there's no minimum deposit.

Capital One calls it a limited-time rate. So it might not be there next month.

The penalty is 3 months of interest on CDs of 12 months or less and 6 months of interest on anything longer. You can't take out part of the money during the term. It's all or nothing.

Already have a Capital One checking account? Then a 360 CD is pretty easy to add. Capital One, N.A. is a Member FDIC.

See Capital One 360 CD rates

8. CIT Bank

1-year and no-penalty CDs from $1,000

1-Year CD APY4.00%

Minimum deposit$1,000

Penalty, 1-year CDA penalty may be imposed

Other CIT Bank CDs (APY)

• No-Penalty CD, 11-month 3.90%
• 6-Month CD 3.75%
• 13-Month CD 3.25%

CIT Bank's 1-Year CD pays 4.00% APY with a $1,000 minimum. That's below the top 1-year rates on this page, so why is it here?

Because of its 11-month No-Penalty CD. It pays 3.90% APY, which was the second best no-penalty rate we found, right behind Marcus. You can take out your total balance and the interest you've earned beginning 7 days after CIT Bank receives your funds.

CIT Bank also has a 6-Month CD at 3.75% APY and a 13-Month CD at 3.25% APY. Each one takes $1,000 to open.

Already keep your savings at CIT Bank? Then a CD in the same login is a fair reason to stay put. You can see its savings accounts on our CIT Bank offers page.

APYs are accurate as of July 1, 2026.

Open a CIT Bank 1-Year CD

Disclosures

1-Year CD: Annual Percentage Yields (APYs) for all Term CDs are accurate as of July 1, 2026. A penalty may be imposed for early withdrawal of principal, and any early withdrawal (principal or interest) will reduce earnings.

No-Penalty CD: APY (Annual Percentage Yield) is accurate as of July 1, 2026. $1,000 minimum to open the account. With a No-Penalty CD, you may withdraw the total balance and interest earned, without penalty, beginning 7 days after funds have been received for your CD. No withdrawals are permitted during the first 6 days following the receipt of funds.

6-Month CD: APY (Annual Percentage Yield) is accurate as of July 1, 2026. $1,000 minimum deposit is required to open the account. A penalty may be imposed for early withdrawal of principal, and any early withdrawal (principal or interest) will reduce earnings.

13-Month CD: APY (Annual Percentage Yield) is accurate as of July 1, 2026. $1,000 minimum deposit is required to open the account. A penalty may be imposed for early withdrawal of principal, and any early withdrawal (principal or interest) will reduce earnings. Upon maturity, the 13-Month CD will be automatically renewed as a 1-Year Term CD at the then-published APY.

For complete list of account details and fees, see our Personal Account disclosures. Member FDIC.

How do CDs work?

A certificate of deposit is a deal with a bank. You hand over a lump sum for a set term, and the bank pays you a fixed rate until that term ends.

That fixed rate is the whole point. A savings account rate can drop next week. A CD rate can't.

So what's it worth? The national average for a 12-month CD is 1.73%. Put $10,000 in at that rate and you earn about $173 in a year. At 4.50% APY you earn about $450.

Credit unions call them share certificates and pay dividends instead of interest. It's the same idea with different words.

What does an early withdrawal penalty cost?

Banks set the penalty as a number of days of interest, and longer terms usually mean more days.

Here's an example. Say you put $10,000 in a 1-year CD at 4.40% and the penalty is 90 days of simple interest. That penalty comes to about $108.

Now say you break it after 60 days. You've only earned about $72 by then, so the other $36 or so comes out of the money you put in. Sallie Mae, for one, says it deducts the difference from your principal.

That's how you lose money in a CD. It doesn't happen often, but it can.

This is arithmetic, not a quote. It assumes your interest stays in the CD, and it figures the penalty as simple interest at the APY, which runs a little high. Your bank's own math decides the real number. Comparing against a savings account? Try the savings calculator.

Two more things to check before you open one. Some banks won't let you take out part of the money (Capital One is one of them), so it's the whole CD or nothing. And the penalty schedule can jump at certain terms. Popular Direct goes from 365 days on a 4-year CD to 730 days on a 5-year.

How does a CD ladder work?

A ladder is several CDs with different end dates. Part of your money comes free every year instead of all of it being stuck for five.

Here's a simple one using Bread Savings rates from October 13, 2026. You split $7,500 into five CDs of $1,500 each.

In the first year that ladder earns about $338 in interest.

When the 1-year CD matures you can spend the money, or roll it into a new 5-year CD. Keep doing that and after a few years you've got a 5-year CD coming due every 12 months, each one earning a long-term rate.

The best part? You never have to guess where rates are headed. If they go up, your next rung catches the higher rate. If they fall, the long rungs are already locked in.

CD, high-yield savings or money market account?

All three are safe places for cash. The difference is how the rate works and how fast you can get your money back.

A lot of people use both. Keep your emergency fund in a savings account, and put money you won't touch into a CD. You can compare the other two on our lists of the best high-yield savings accounts and the best money market accounts.

Still building that emergency fund? Do that first. Here's how to start saving money and how to save $1,000 a month.

Is CD interest taxed?

Yes. The IRS counts interest on certificates of deposit as taxable interest, and it's taxable income in the year it becomes available to you.

Your bank should send you a Form 1099-INT if it paid you $10 or more in interest. Didn't get one? You still have to report the interest on your federal return.

Credit union dividends on a share certificate count as taxable interest too.

Are CDs insured?

At an FDIC-insured bank, yes. FDIC insurance covers CDs up to $250,000 per depositor, per bank, for each account ownership category.

Share certificates at a federally insured credit union get the same $250,000 from the National Credit Union Share Insurance Fund, which is backed by the full faith and credit of the U.S. government.

Seven of the eight on this page are FDIC banks. Navy Federal is insured by the NCUA.

Have more than $250,000? Then split it between banks, or between ownership categories, so all of it stays covered.

What happens when a CD matures?

You get a short window called a grace period to take the money out or switch terms. Sallie Mae, Synchrony, Capital One and Popular Direct each give you 10 days.

Do nothing and the CD renews by itself, at whatever rate the bank is paying that day. That new rate can be a lot lower than the one you signed up for.

So set a reminder a week before the maturity date. It takes two minutes, and it keeps you from getting locked into a rate you didn't pick.

How do you choose a CD term?

Start with the date you need the money, then work back from there.

• Know the date? Pick the longest term that ends before it.
• Not sure? Go shorter, or use a no-penalty CD.
• Don't stretch to 5 years for a slightly higher rate. The best 5-year rate we found was 5.00% APY and the best 1-year was 4.50%, so you get half a point for four more years of waiting.
• When two banks are close on rate, pick the one with the smaller penalty.
• Watch the minimum. It ran from nothing at Synchrony and Capital One to $10,000 at Popular Direct.

And don't put money you might need next month into any CD. That's a job for savings. You'll find more ideas in our save money section.

CD rates FAQ