Best CD Rates: March 2026
Lock in guaranteed returns — no market risk, no monthly fees. Ranked by APY across 6-month, 1-year, 2-year, and 5-year terms.
Updated March 2026
The top online banks are paying 4.00%–4.50% APY on CDs as of March 2026 — versus a national average of roughly 1.80% on 1-year CDs. Locking in today means your rate is guaranteed for the full term, regardless of what the Fed does next.
| CD Account | 1-Yr APY | Min. to Open | Early Withdrawal | |
|---|---|---|---|---|
Bread Financial CDBest Overall Bread Financial | 4.45% | $1,500 | 180 days of interest | View on Bread Financial |
Synchrony Bank CDBest for No Minimum Synchrony Bank | 4.35% | $0 | 90 days of interest (terms ≤ 12 mo.) / 180 days (longer terms) | View on Synchrony |
Marcus High-Yield CD Goldman Sachs Bank USA | 4.25% | $500 | 90–270 days of interest (varies by term) | View on Marcus |
Ally Bank High Yield CDBest for Flexibility Ally Bank | 4.10% | $0 | 60 days (≤ 24 mo.) / 150 days (> 24 mo.) of interest | View on Ally |
Discover® CD Discover Bank | 4.00% | $2,500 | 6 months of interest (≤ 1 yr) / 18 months (5-yr term) | View on Discover |
Bread Financial CD
Bread Financial
4.45%
1-Yr APY
Synchrony Bank CD
Synchrony Bank
4.35%
1-Yr APY
Marcus High-Yield CD
Goldman Sachs Bank USA
4.25%
1-Yr APY
Discover® CD
Discover Bank
4.00%
1-Yr APY
Bread Financial · FDIC Insured
Consistently among the highest published APYs across 6-month to 5-year terms
Synchrony Bank · FDIC Insured
No minimum deposit — open with any amount
Goldman Sachs Bank USA · FDIC Insured
Backed by Goldman Sachs — strong institutional credibility
Ally Bank · FDIC Insured
Lowest early withdrawal penalties on the list — 60 days on shorter terms
Discover Bank · FDIC Insured
24/7 U.S.-based customer support
Rate Matrix — APY by Institution & Term (as of March 2026)
| Institution | 6-Month | 1-Year | 2-Year | 5-Year |
|---|---|---|---|---|
| Bread Financial | 4.50%▲ | 4.45%▲ | 4.20%▲ | 3.95%▲ |
| Synchrony Bank | 4.40% | 4.35% | 4.10% | 3.85% |
| Goldman Sachs Bank USA | 4.30% | 4.25% | 4.05% | 3.80% |
| Ally Bank | 4.15% | 4.10% | 3.90% | 3.70% |
| Discover Bank | 4.00% | 4.00% | 3.85% | 3.60% |
▲ Highest rate for that term. Bold green = best pick per column. Verify rates directly before applying — they change without notice.
What locking in 4.45% APY means in dollars
On a $10,000 1-year CD at 4.45% APY, you earn $445 at maturity — guaranteed, regardless of Fed moves during that year. At the national average of 1.80%, the same $10,000 earns just $180. On $25,000, that gap is $1,113 vs. $450. If you have cash sitting in a 0.01% checking account, the opportunity cost is even larger. Use our Savings Goal Calculator to model your specific timeline and balance.
How we chose these CDs
There are hundreds of banks offering CDs, but most published rates fall well short of what online banks pay. We ranked by APY across four standard terms, then applied four additional filters.
Rate leadership by term
We compared 1-year APYs as the primary sort, then checked 6-month, 2-year, and 5-year rates to confirm consistency. An institution that leads on 1-year but trails badly on 5-year terms isn't worth featuring as a comprehensive pick.
FDIC insurance
All five institutions on this list are FDIC insured up to $250,000 per depositor, per institution. CDs from non-FDIC-insured institutions (including some fintech products) were excluded.
Transparent early withdrawal penalties
Every CD has an early withdrawal penalty. We required that institutions clearly disclose their penalty schedule upfront — and we factored penalty severity into our picks. Ally's "Best for Flexibility" designation reflects meaningfully lower penalties than the field.
Reasonable minimum deposit
Bread Financial's $1,500 minimum is the highest on the list — and it earns the top rates. We excluded institutions requiring $5,000+ to open a CD when comparable rates were available with lower minimums elsewhere.
What we excluded: Brokered CDs (sold through brokerages, not direct from the issuing bank), promotional rates with spending requirements, and CDs that compound annually rather than daily or monthly. We also excluded credit unions that require a paid membership to access their published rates.
CD details
The tables above show the headline numbers. Here's what actually matters about each CD before you lock up your money.
Bread Financial CD
Best OverallBread Financial · FDIC Insured
4.45%
1-Yr APY
Best for
Savers who want consistently top-tier rates across all terms
Pros
- +Consistently among the highest published APYs across 6-month to 5-year terms
- +FDIC insured; straightforward online opening process
- +Interest can be credited monthly, quarterly, or at maturity
Cons
- –$1,500 minimum deposit — higher than some competitors
- –No checking or savings account to pair with the CD
Synchrony Bank CD
Best for No MinimumSynchrony Bank · FDIC Insured
4.35%
1-Yr APY
Best for
Savers who want strong rates without a minimum opening deposit
Pros
- +No minimum deposit — open with any amount
- +One of the shorter early withdrawal penalties in the category
- +Optional bump-up CD available for 24-month term
Cons
- –No linked checking account; transfers take 1–3 business days
- –Rates trail Bread Financial by a small margin on most terms
Marcus High-Yield CD
Goldman Sachs Bank USA · FDIC Insured
4.25%
1-Yr APY
Best for
Savers who want a Goldman Sachs-backed CD with a low minimum
Pros
- +Backed by Goldman Sachs — strong institutional credibility
- +$500 minimum is accessible while maintaining a premium product
- +10-day rate guarantee: if rates rise within 10 days of opening, you get the higher rate
Cons
- –APYs sit slightly below the top-two picks
- –Early withdrawal penalties scale to 270 days on longer terms
Ally Bank High Yield CD
Best for FlexibilityAlly Bank · FDIC Insured
4.10%
1-Yr APY
Best for
Savers who want the lightest early withdrawal penalties in case plans change
Pros
- +Lowest early withdrawal penalties on the list — 60 days on shorter terms
- +No minimum deposit; pairs well with Ally's savings and checking accounts
- +Raise Your Rate CD option lets you bump up once if rates rise
Cons
- –APYs are below the top three options — you pay for the flexibility
- –Raise Your Rate CD starts at a lower rate than the standard CD
Discover® CD
Discover Bank · FDIC Insured
4.00%
1-Yr APY
Best for
Existing Discover customers who want one institution for banking and CDs
Pros
- +24/7 U.S.-based customer support
- +No fees on any Discover deposit product
- +Easy integration with Discover checking and savings
Cons
- –$2,500 minimum to open — the highest on this list
- –APYs lag the competition, particularly on shorter terms
Who benefits most
A CD is the right tool when you have cash you won't need for a defined period and want a guaranteed return with no market risk. It's a poor fit for money you might need to access early.
Good fit if…
- You have a lump sum you won't need for 6 months to 5 years
- You're concerned about falling rates and want to lock in today's yield
- You want FDIC-guaranteed returns with zero stock market exposure
- You're building a CD ladder to spread maturity dates across the year
- You've already funded your emergency fund in a liquid HYSA
Consider alternatives if…
- →You don't have 3–6 months of expenses in a liquid account first — use a high-yield savings account instead
- →You might need the money before maturity — early withdrawal penalties can wipe out months of interest
- →The money won't be touched for 5+ years — a diversified investment portfolio will likely outperform over that horizon
- →You need inflation protection — I-Bonds from TreasuryDirect adjust with CPI, which CDs do not
- →You're in a high tax bracket — municipal money market funds may offer better after-tax yields
Rate context: Current CD rates of 4.0–4.5% reflect a Fed funds rate that peaked in 2023–2024. As the Fed continues cutting, new CD rates will likely drift lower — but existing CDs lock in their rate for the full term. If you believe rates will fall further, opening a longer-term CD now preserves today's yield. See our CD Rates reference for historical rate context and term-by-term breakdowns.
Frequently asked questions
What happens if I need the money before my CD matures?
You can withdraw early, but you'll pay an early withdrawal penalty — typically 90 to 270 days of interest, depending on the bank and term length. On a 1-year CD at 4.45% APY, a 180-day penalty costs roughly $222 per $10,000. That's still a net positive if you've held the CD for more than 6 months, but it eliminates part of your gain. Ally's shorter penalties (60 days on terms of 24 months or less) are the most forgiving on this list if early access is a real possibility.
What is a CD ladder and how does it work?
A CD ladder splits your deposit across multiple CDs with staggered maturities — for example, one each at 6 months, 1 year, 2 years, and 5 years. Each time a CD matures, you reinvest into a new 5-year CD (or whatever the longest term is in your ladder). Over time, you end up with one CD maturing every year, giving you periodic access to funds while still capturing longer-term rates. Ladders reduce reinvestment risk compared to putting everything into a single long-term CD.
Are CDs safe? What if the bank fails?
Yes — all five banks on this list are FDIC insured, which means your principal and accrued interest are guaranteed by the federal government up to $250,000 per depositor, per institution. No FDIC-insured depositor has ever lost principal. If you have more than $250,000 to deposit, spreading it across multiple FDIC-insured institutions provides full coverage on all of it.
How are CD earnings taxed?
CD interest is taxed as ordinary income in the year it's credited to your account — not at maturity. If your CD compounds and credits interest annually, you pay tax annually even if you don't withdraw. You'll receive a 1099-INT from the bank for any year you earn more than $10 in interest. If you're in a high marginal tax bracket, compare after-tax CD yields against alternatives like municipal money market funds or Series I Bonds, which have different tax treatment.
Should I open a CD now, or wait for rates to change?
Timing the Fed is difficult even for professionals. The practical question is simpler: if you have cash you won't need for the CD's full term, and the current rate locks in more return than a high-yield savings account would deliver — given that HYSA rates fluctuate — then opening a CD is reasonable today. If you think rates are likely to rise further, a shorter-term CD (6 months or 1 year) limits your lock-in while still beating most savings accounts. See our current CD rate reference page for the latest term-by-term data before deciding.
Lock in a guaranteed rate before it drops further
Both accounts below take about 10 minutes to open online. Rates are subject to change — the rate you see when you apply is the rate you lock in.