Certificate of deposit (CD) investors woke up to attractive yields on Sunday, August 9, 2026, as the national high mark climbed to 4.35% APY. United Bank is leading the pack with that headline rate on its 18-month CD, narrowly outpacing competing institutions still paying above 4% on short- and mid-term products. For depositors shopping around, this is one of the cleanest opportunities in months to lock in a guaranteed return before the Federal Reserve’s next policy decision resets the curve.
Overview of CD Rates Today
Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today’s economic climate, the opposite is true. The yield curve has been flattening as markets price in a more dovish Fed path through late 2026 and into 2027, so the 12-month, 18-month, and 2-year tenors now trade close together while 5-year CDs sit noticeably lower on many rate sheets.
That inversion makes the 4.35% APY offer on United Bank’s 18-month CD especially compelling. A saver who laddered into a similar product a year ago at roughly 4.25% APY now has a clean rollover decision: extend at 4.35% or rotate into a shorter CD ahead of expected rate cuts. With consumer price index (CPI) data still running above the Fed’s 2% target and labor markets cooling only modestly, the window for sub-4% short CDs could close quickly if inflation re-accelerates or if geopolitical risk drives a flight to safety.
How Much Interest Can I Earn With a CD?
The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly).
Say you invest $1,000 in a one-year CD with 1.52% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,015.20 — your initial $1,000 deposit, plus $15.20 in interest.
Now let’s say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest.
The more you deposit in a CD, the more you stand to earn. If we used the same example of a one-year CD at 4% APY but deposited $10,000, your total balance when the CD matures would be $10,407.42, meaning you’d earn $407.42 in interest. At today’s 4.35% APY on United Bank’s 18-month CD, that same $10,000 would compound to roughly $10,667 at maturity — an extra $260 of guaranteed income versus the 4% benchmark.
Types of CDs
When choosing a CD, the interest rate is usually top of mind. However, the rate isn’t the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the common types of CDs you can consider beyond traditional CDs:
- Bump-up CD: This type of CD allows you to request a higher interest rate if your bank’s rates go up during the account’s term. However, you’re usually allowed to “bump up” your rate just once.
- No-penalty CD: Also known as a liquid CD, this type of CD allows you to withdraw funds before maturity without penalty. It is a strong hedge if you expect the Fed to cut rates before maturity and want to redeploy capital.
- Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer a higher interest rate in return. In today’s CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.
- Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured.
Strategy Notes for Late-Summer 2026
With the Fed funds target range holding in restrictive territory and futures markets implying one to two cuts before year-end, savers face a classic duration trade. Locking the full 18 months at 4.35% APY removes reinvestment risk if rates fall, but it also caps upside if the Fed holds longer than expected. A practical approach for households sitting on cash reserves is to build a CD ladder: split the deposit across a 6-month, 12-month, and 18-month CD so portions mature at regular intervals, giving flexibility to redeploy into higher-yielding vehicles or take advantage of seasonal promotions.
Frequently Asked Questions
What is the highest CD rate available today, August 9, 2026?
The highest nationally available CD rate today is 4.35% APY, offered by United Bank on its 18-month CD. Several online banks and credit unions are offering between 4.10% and 4.30% APY on competing 12-month and 18-month products.
Are CDs a good investment right now?
CDs can be a solid choice for risk-averse savers who want a guaranteed return and FDIC insurance up to $250,000 per depositor. They are particularly attractive when yields are elevated relative to inflation expectations, as is currently the case.
Will CD rates go down in 2026?
Most market forecasts suggest CD rates will drift lower through the second half of 2026 if the Federal Reserve continues its gradual cutting cycle. Locking in a 4.35% APY today insulates savers from that expected decline for the full term of the CD.
