Best CD rates today, Saturday, July 25, 2026
Certificates of deposit remain one of the simplest ways to lock in a guaranteed return, and today’s rate environment still rewards savers who shop carefully. The Federal Reserve cut its federal funds rate three times in 2025. So far in 2026, the Fed has left interest rates alone, which means today may still be a favorable window for locking in a competitive CD rate before pricing shifts again.
That matters because CD rates can differ sharply across financial institutions. Even when the broader rate backdrop looks stable, one bank may offer a meaningfully stronger yield than another. For savers, that spread can have a direct impact on earnings over the life of the deposit.
Today’s highest CD rate is 4.20% APY. That rate is offered by Sallie Mae on its 2-year CD. For depositors focused on guaranteed yield, that makes the 2-year term a standout option in the current market.
Why CD rates matter now
CDs appeal to investors and savers who want predictability. Unlike market-linked products, a CD locks in a fixed return for a set term. That structure is especially useful when rate cuts or economic uncertainty could reduce future yields. If the market expects lower rates ahead, a CD can help preserve today’s income stream.
In practical terms, a strong APY can translate into noticeably higher earnings even on modest balances. The rate is the key variable, but the compounding schedule also matters. CD interest typically compounds daily or monthly, which affects the final return.
How much interest can you earn with a CD?
The amount of interest you can earn from a CD depends on the annual percentage rate (APY). APY measures total earnings after one year, including the base interest rate and the effect of compounding.
For example, if you invest $1,000 in a one-year CD with 1.52% APY and interest compounds monthly, your balance would grow to $1,015.20 at the end of the year. That includes your original $1,000 deposit plus $15.20 in interest.
If you instead choose a one-year CD that offers 4% APY, your balance would grow to $1,040.74 over the same period. That includes $40.74 in interest.
The same logic scales with a larger deposit. If you put $10,000 into a one-year CD at 4% APY, your total balance when the CD matures would be $10,407.42. Your interest earnings would be $407.42.
Types of CDs to consider
Rate is important, but structure matters too. Different CD types serve different financial goals, and some trade a bit of yield for flexibility.
- Bump-up CD: Lets you request a higher interest rate if your bank’s rates rise during the term. Usually you can bump up your rate just once.
- No-penalty CD: Also known as a liquid CD, it allows withdrawals before maturity without penalty.
- Jumbo CD: Requires a higher minimum deposit, usually $100,000 or more, and often offers a higher interest rate. In today’s CD rate environment, the difference between traditional and jumbo CD rates may not be much.
- Brokered CD: Purchased through a brokerage rather than directly from a bank. These can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured.
For many savers, the best choice is not simply the highest posted APY. It is the product that matches their liquidity needs, time horizon, and comfort with risk.
What savers should watch next
If the Fed eventually changes course, CD pricing could shift quickly. That is why rate shoppers often compare terms side by side and move when a compelling offer appears. Online banks and credit unions, in particular, often lead the market on yield.
For now, shorter terms of around one year or less generally continue to show some of the most competitive CD rates. Still, the current leader is the 4.20% APY offered by Sallie Mae on its 2-year CD, a reminder that the best return is not always tied to the shortest term.
FAQ
What is the highest CD rate today?
The highest CD rate today is 4.20% APY, offered by Sallie Mae on its 2-year CD.
Are online banks better for CD rates?
Generally, online banks and credit unions offer some of the top CD rates because they often have lower operating costs than traditional branch-heavy banks.
How does APY affect CD earnings?
APY reflects your total return after one year, including compounding. A higher APY means higher earnings, assuming the deposit amount and term are the same.
