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Rates on certificates of deposit are generally trending down in 2026, with one small, notable exception: from late March to late April, a handful of online banks increased their competitive one-year CD rates. With the Fed keeping its rate steady so far this year, though, the one-year rate increases may be a temporary adjustment as banks withstand ongoing economic uncertainty.
CDs’ fixed rates can offer guaranteed returns for several months or years, and locking in a high CD rate can mean earning strong yields even if the economy enters a low-rate environment. Here’s an overview of where CD rates might be headed.
» Skip down to see more on 2026 CD rate changes
Are CD rates going up?
No, CD rates have been falling, especially short-term rates. Both national average and high-yield CD rates began to noticeably drop around September 2025, which is when the Federal Reserve began lowering its federal funds rate last year. Some current political and economic events may impact inflation's direction, though, making the near future of rate movements somewhat hard to predict.
Here’s a snapshot of the rate movement over the past year: From January 2025 to April 2026, the midpoint for one-year CD rates at 21 online banks and credit unions dropped from 4.00% to 3.70% annual percentage yield, according to a NerdWallet analysis. Now’s the time to take advantage of current high-yield CDs before rates drop more.
» COMPARE: NerdWallet’s best CD rates
When is the next Fed meeting?
The Federal Open Market Committee's next meeting is June 16-17, 2026. This is the next scheduled time that the FOMC could modify the federal funds rate.
Despite the recent dips, CD rates are still at some of the highest in more than a decade. A big reason why rates are at such highs is the frequency with which the Fed increased its federal funds rate in 2022 and 2023. The Fed pushed up the target range of this Fed rate, which is the interest rate banks use to borrow money from each other, as one tool to curb inflation. From March 2022 to July 2023, the Fed raised its rate 11 times. The Fed made three rate cuts each in 2024 and 2025..
Banks generally adjust their rates on new CDs in the same direction as Fed rate changes. Credit unions — the not-for-profit equivalent to banks — similarly raise rates on their CDs, known as share certificates. Learn more about what Fed rate decisions mean for CDs and savings accounts.
CD rate trends
- High-yield CDs tend to be at online banks and online credit unions, which have rates that are whole percentages higher than national average CD rates. For example, the national averages are 1.55% for one-year CDs and 1.34% for five-year CDs. Top one-year yields are around 4.00%, and the best five-year CD rates are closer to 3.75%.
- Short-term CD rates have had higher yields than longer-term rates since the end of 2022, according to a NerdWallet analysis of national average and high-yield CDs. However, since September, short-term rates have dropped faster than long-term rates, so the gap may not last.
Member FDIC
Bread Savings® CD 
APY
4.15%
Term
9 months
Marcus by Goldman Sachs High-Yield CD 
APY
4.00%
Term
9 months
Member FDIC
Synchrony Bank CD 
APY
4.00%
Term
9 months
CD rate forecast: 2026
The Fed kept its rate unchanged after its third meeting of 2026, which concluded on April 29. The target rate range remains at 3.50% to 3.75%. Projections suggest that the Fed may not drop its rate for the rest of 2026, according to CME FedWatch (accessed on April 29, 2026). When the Fed rate drops, CD rates will likely follow suit, though it’s up to each bank and credit union if and when that occurs.
Inflation is expected “to remain above the Federal Reserve’s 2% target due in part to geopolitical events, including trade policy and the ongoing military action in the Middle East," according to a March 2026 forecast from the American Bankers Association’s Economic Advisory Committee. The committee consists of chief economists from some of the largest U.S. banks.
The Fed intends to land its rates somewhere in the 3% to 3.50% range within the next year or two, according to the Fed’s March 2026 projections. However, uncertainty remains especially as tariffs, gaps in federal economic data and global conflict complicate the economic picture.
2026 data highlight: Gradual dips for high-yield CDs
CD rates at nearly two dozen online banks and credit unions have gradually fallen over the past two years. In 2026, we’re seeing mid-3% rates for high-yield CDs across terms become more common. The best short-term CDs have dropped the most since 2024, when they were in the 5% range.
| CD term | Median APY: Jan. 2024 | Median APY: Jan. 2025 | Median APY: April 2026 |
|---|---|---|---|
| 6-month CD | 5.00%. | 4.00%. | 3.50%. |
| 1-year CD | 5.10%. | 4.00%. | 3.70%. |
| 3-year CD | 4.25%. | 3.50%. | 3.45%. |
| 5-year CD | 4.00%. | 3.50%. | 3.40%. |
See methodology detailsMedians, or midpoints, consist of APYs of CDs or share certificates collected from the websites of the following 21 financial institutions: Alliant Credit Union, Ally Bank, Andrews Federal Credit Union, Barclays, BMO Alto, Bread Savings®, Capital One, Citizens, Connexus Credit Union, Discover Bank (until 2026), EverBank, LendingClub, Live Oak Bank, Marcus by Goldman Sachs, Pentagon Federal Credit Union, Popular Direct, Quontic Bank, Sallie Mae Bank, Self-Help Credit Union, Synchrony Bank and TAB Bank. In cases where an institution doesn’t offer a specific term, the median of remaining institutions was used. Dates of collection were Jan. 26, 2024; Jan. 28, 2025; and April 27, 2026. | |||
Want to see best CDs by term?
View a curated list of our picks based on competitive rates and terms.
Take advantage of today’s CD rates
Lock in CD rates sooner than later. CDs are typically best for specific goals, such as protecting some savings from inflation’s effects or earmarking a fixed sum for a large purchase within five years, such as a car or house.
Remember specialty CDs. If you’re unsure about getting a CD now, know that some types of CDs offer flexibility. Bump-up CDs allow you to increase the rate at least once during a CD term if new CD rates go up. But in a falling-rate environment, it’s more likely for bump-up CD rates to stay the same. No-penalty CDs give you a fixed rate plus the opportunity to jump ship for free.
Consider a CD ladder to hedge your bets. A CD ladder strategy reduces the stress around timing your CDs. Split up an investment equally into several CDs of different term lengths, such as one year, two years and three years. When each CD matures, reinvest in a longer-term CD or, if you need the cash, withdraw. Ideally, though, you can have multiple long-term CDs that mature at staggered intervals. You mix short-term CD access with long-term rates.
Compare other short-term ways to save and invest. For more everyday savings with the same low risks as CDs, consider a high-yield savings account or money market account, which have top rates around 4% APY. Or, if you’re looking to invest, consider more ways to invest your savings.
More fed rate coverage
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- 1. Board of Governors of the Federal Reserve System. Federal Open Market Committee: Meeting calendars, statements, and minutes (2020-2026). Accessed Apr 29, 2026.
- 2. American Bankers Association. Bank Economists See Moderate Growth, Persistent Inflation Amid Geopolitical Uncertainty. Accessed Apr 29, 2026.
