Best CD Rates January 2026
Lock in today's rates before they fall. Here are the best CDs by term length, plus no-penalty options for flexibility.
Current Rate Environment
With Fed rate cuts expected in 2026, locking in current CD rates may be smart
Best CDs by Term
📅 Best 3-Month CDs
| Bank | APY | Minimum |
|---|---|---|
| Bread Savings | 4.40% | $1,500 |
| Barclays | 4.25% | $0 |
| Marcus | 4.00% | $500 |
Best for: Short-term parking while deciding on longer commitment
📅 Best 6-Month CDs
| Bank | APY | Minimum |
|---|---|---|
| Bread Savings | 4.50% | $1,500 |
| Barclays | 4.40% | $0 |
| Ally | 4.00% | $0 |
Best for: Money you won't need for 6 months with rate lock protection
📅 Best 1-Year CDs
| Bank | APY | Minimum |
|---|---|---|
| Bread Savings | 4.50% | $1,500 |
| Barclays | 4.40% | $0 |
| Marcus | 4.25% | $500 |
| Ally | 4.00% | $0 |
Best for: Locking in today's rates if you expect rate cuts in 2026
📅 Best 2-Year CDs
| Bank | APY | Minimum |
|---|---|---|
| Bread Savings | 4.25% | $1,500 |
| Barclays | 4.15% | $0 |
| Ally | 3.75% | $0 |
📅 Best 5-Year CDs
| Bank | APY | Minimum |
|---|---|---|
| Bread Savings | 4.00% | $1,500 |
| Barclays | 3.90% | $0 |
| Marcus | 3.85% | $500 |
Best for: Long-term rate lock if you believe rates will fall significantly
🔓 Best No-Penalty CDs
Withdraw anytime after the first few days with zero penalty. Best of both worlds: locked rate + liquidity.
CD vs High-Yield Savings: When to Use Each
Choose a CD If:
- You won't need the money until maturity
- You believe rates will fall (lock in now)
- You want guaranteed returns for a specific goal
- You need to prevent yourself from spending it
Choose High-Yield Savings If:
- You need access to money (emergency fund)
- You believe rates will rise
- You're still building your savings
- You want flexibility to move money
Early Withdrawal Penalties
If you withdraw from a standard CD before maturity, you'll pay a penalty—typically:
- 3-month CD: 30-60 days of interest
- 6-month CD: 90 days of interest
- 1-year CD: 90-150 days of interest
- 5-year CD: 150-365 days of interest
Penalties can eat into your principal if you withdraw early. If there's any chance you'll need the money, consider a no-penalty CD or high-yield savings instead.
The Bottom Line
With Fed rate cuts expected in 2026, now may be a good time to lock in current CD rates—especially for 1-2 year terms.
Our recommendations:
- Best overall: Bread Savings (highest rates across terms)
- Best no-minimum: Barclays ($0 minimum, strong rates)
- Best flexibility: Marcus No-Penalty CD (4.00% with liquidity)