A certificate of deposit locks your cash for a fixed term in exchange for a guaranteed APY — typically higher than a high-yield savings account for terms of 6 months or longer. The tradeoff is liquidity: break the CD early and you pay an early-withdrawal penalty.
June 2026 update: APYs on the top 1-year CDs remain in the 4.70%–5.00%+ range as the Federal Reserve maintains current target rates. If the Fed cuts rates later in 2026, CD rates will come down — locking in a 1-year CD today means you keep today's rate for the full term regardless. Verify current rates at each bank before opening. All banks listed are FDIC-insured — verify at fdic.gov.
How to pick a CD
Three questions sharpen the choice:
How long can you lock the money? If you need access in under 6 months, an HYSA or a no-penalty CD is better than a standard CD. If you're comfortable with 12–18 months, standard CDs typically pay more.
Do you want rate-lock certainty or rate-bump flexibility? Standard CDs guarantee your APY for the full term. If you think rates might rise, Ally's Raise Your Rate CD or Synchrony's Bump-Up CD give you one chance to increase mid-term at a slightly lower starting APY.
How much are you depositing? Most picks open with $0–$1,500. Bread Savings requires $1,500; CIT Bank requires $1,000; Marcus requires $500. Ally, Synchrony, and Capital One 360 require $0.
CD laddering basics
If you have a larger lump sum (say $20,000), splitting it across 4–5 CDs at different maturity dates (1-year, 2-year, 3-year, 4-year, 5-year) creates a rolling ladder. Each CD matures on a different schedule, giving you regular access to a portion while keeping the rest earning the higher long-term rate. Banks with no minimums (Ally, Synchrony, Capital One) make laddering accessible at any savings level.
No-penalty CDs: the safety valve
If liquidity is a concern but you want more than HYSA rates, no-penalty CDs are worth the tradeoff. Marcus, Ally, and CIT Bank each offer 11-month no-penalty CDs that let you withdraw principal + accrued interest after a short waiting period (6-7 days) without any penalty. The APY is typically slightly below standard CDs of comparable length, but the flexibility is meaningful.
Related ClearValue Lending content
- Best high-yield savings accounts 2026 — if you need full liquidity, HYSA is the better fit
- Best money market accounts 2026 — FDIC-insured, variable-rate, often with check-writing access
- Best checking accounts 2026 — the transactional layer to pair with your CD or savings account
- Why traditional savings accounts cost you money 2026 — the math on big-bank savings vs. online alternatives
Disclosure
APYs and CD terms were verified at each bank's own disclosure page on June 3, 2026. CD APYs are fixed at the time of opening — rates shown here may no longer be available when you read this. Confirm current rates at the bank before opening.
ClearValue Lending is not the issuer of any CD listed here. Each is operated by its respective bank — Goldman Sachs Bank USA (Marcus); Synchrony Bank; Ally Bank; Capital One Bank, N.A.; Discover Bank; First-Citizens Bank & Trust Company (CIT Bank); Comenity Capital Bank (Bread Savings). APYs, terms, penalties, eligibility, and FDIC coverage are determined solely by the issuing bank.
When bank affiliate programs are wired, application links may pay ClearValue Lending a referral commission at no cost to you. Editorial selection and ranking is independent of any commission — banks are ranked by the methodology above, not by who pays.
All FDIC coverage is provided through the issuing bank up to the standard $250,000 per depositor per ownership category. ClearValue Lending is a financial education and comparison platform — not a bank, financial advisor, or deposit broker.