CD Rate Forecast: CD Rates on the Rise in Late 2026

Rates on certificates of deposit will likely keep rising, despite the Federal Reserve’s decision to keep its rate steady at its Oct. 28, 2026, meeting.

CD rates started increasing in May and the frequency of rate increases has only grown: June (about 35 rates), July (about 60 rates), August and September (about 100 rates each), and October (160 rates), according to a NerdWallet data analysis of 50 financial institutions.

CDs’ fixed rates can offer guaranteed returns for several months or years, and locking in a high CD rate can mean earning strong yields, especially when the Fed increases its rate. Here’s an overview of where CD rates might be headed.

» COMPARE: NerdWallet’s best CD rates

CD rates remain among the highest seen in more than a decade. A big reason why rates have been at such highs goes back to 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. But with inflation rising in mid- to late 2026, the Fed raised instead of lowered its rate

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Board of Governors of the Federal Reserve System. Federal Open Market Committee: Meeting calendars, statements, and minutes (2020-2026). Accessed Oct 28, 2026. View all sources .

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 1.76% for one-year CDs and 1.41% for five-year CDs. Top one-year yields are around 4.50%, and the best five-year CD rates are closer to 5.00%.

• Short-term CD rates had higher yields than longer-term rates from November 2022 to mid-2026. High-yield long-term CDs now have the highest rates, reaching 5.00% in October, according to a NerdWallet analysis. Short-term CD rates have had higher yields than longer-term rates since November 2022, according to a NerdWallet analysis.

CD rate forecast: 2026

The Fed kept its rate the same at its Oct. 2026 meeting, the seventh of the year. The target rate range remains 3.75% to 4.00%. Projections suggest that the Fed may make one additional rate hike this year at its Dec. meeting, according to CME FedWatch (accessed on Oct. 28, 2026). When the Fed rate increases, CD rates tend to go up too, 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

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American Bankers Association. Bank Economists See Moderate Growth, Persistent Inflation Amid Geopolitical Uncertainty. Accessed Oct 28, 2026. View all sources .

The Fed intends to have its rate in the 3.50% to 4.25% range within the next year, according to the Fed’s June 2026 projections. Uncertainty remains especially as tariffs, gaps in federal economic data and global conflict complicate the economic picture. Inflation, however, has been elevated enough to cause the Fed to hike its rate in Sept. 2026.

Take advantage of today’s CD rates

Lock in CD rates when they’re high. 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. 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 above 4% APY. Or, if you’re looking to invest, consider more ways to invest your savings.