Attractive CD Rates and Their Impact on Recent Financial Trends

Certificates of deposit (CDs) currently offer attractive annual percentage yields (APYs) up to 4.20% as of May 6, 2026. This follows multiple reductions in the benchmark federal funds rate by the Federal Reserve in 2025, influencing CD and savings account rates across various banking institutions. Securing a CD at current favorable rates presents an opportunity for substantial returns.

Newtek Bank is leading the market with a 9-month CD offering a 4.20% APY. Through a collaboration with Curinos, a prominent financial data and analytics organization, a comprehensive list of CDs extending from 1 month to 10 years has been curated to assist individuals in selecting the right CD option.

CD rates are updated daily based on aggregated data from numerous financial institutions by Curinos, facilitating the identification of top-yielding CDs available. Several variables, including initial deposit, term, APY, and compounding frequency, play a critical role in determining CD earnings.

For example, with a hypothetical $5,000 deposit, investors can significantly boost their interest earnings at competitive rates compared to traditional bank offerings. Historically, CD rates soared into double digits in the 1980s but have now stabilized closer to the 3.00%-4.00% range, in line with Federal Open Market Committee (FOMC) policies.

Investors must weigh their options regarding the investment term, as early CD withdrawals may result in penalties. While shorter-term CDs can secure higher yields temporarily, longer-duration CDs serve as a buffer against potential declines in rates.

Online banks are generally able to provide higher CD rates compared to their brick-and-mortar counterparts, largely due to reduced overhead costs. This competitive landscape extends to high-yield savings accounts, offering APYs between 4.00% to 5.00%, positioning them as a flexible alternative to CDs with their ability for immediate access to funds.

Glen, a commerce editor at Fortune, focuses on demystifying complex financial issues. He brings a wealth of experience from his editorial roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree.