Best CD Rates June 2026: 4.50% APY

The best CD rate right now is 4.50% APY from Nuvision Credit Union on a 5-month term for deposit amounts from $1,000 to $5,000. All CDs and rates in our rankings were collected, verified, and available to open as of June 11, 2026. Since 2019, we've tracked the rates of more than 200 nationally available banks and credit unions every weekday.

Key Takeaways

• The top nationwide CD rate is 4.50% APY from Nuvision Credit Union on a 5-month term, available through June 30, 2026 (with a $5,000 maximum).
• Investopedia tracks the CD rates of more than 200 banks and credit unions every weekday.
• The Federal Reserve left its key rate unchanged at its April 29 meeting, maintaining a range of 3.50%–3.75%.
• CD rates closely follow the federal funds rate, so they are expected to decline if the Fed lowers rates later this year.
• To qualify for our rankings, a CD must be nationally available, FDIC- or NCUA-insured, and have a minimum opening deposit of no more than $25,000.

Best CD Rates Today

Ranked below are the top 15 or more APYs on nationally available CDs with minimum deposits of no more than $25,000. In the case of ties, we rank them first by the shortest available term, then by the lowest minimum deposit, and finally by the smallest early withdrawal penalty. If there's still a tie, we sort alphabetically by institution name.

Rankings by Term

Want to lock in a great CD rate for a longer term? We rank the top 15 or more APYs daily in every major CD term, including the best 3-month, 6-month, 1-year, 18-month, 2-year, 3-year, 4-year, 5-year, and jumbo CDs.

Details on the Top CD Offers

Nuvision Credit Union – 4.50% APY (5 months)

Minimum deposit: $1,000. Early withdrawal penalty: 3 months of interest. Nuvision was established in 1935 as the credit union of Douglas Aircraft, and is headquartered in Huntington Beach, California. Anyone nationwide is eligible for membership through the American Consumer Council. The offer is good through June 30, 2026, with a $5,000 maximum. Pros: Top APY available nationwide. Cons: $5,000 cap limits returns.

Connexus Credit Union – 4.30% APY (17 months)

Minimum deposit: $5,000. Early withdrawal penalty: 6 months of interest. Anyone can join the credit union by donating $5 to the Connexus Association and holding $5 or more in a savings account. Headquartered in Wausau, Wisconsin, Connexus was established in 1935. Pros: Easy path to membership. Cons: Minimum deposit higher than many competitors.

Genisys Credit Union – 4.30% APY (25 months)

Minimum deposit: $500. Early withdrawal penalty: 6 months of interest. Anyone can join Genisys by making a $5 donation to the Arthritis Foundation or the Paint Creek Center for the Arts and keeping at least $5 in a member savings account. Genisys Credit Union was chartered in 1964 and is headquartered in Auburn Hills, Michigan. Pros: Low minimum deposit, easy access to membership, multiple terms with high APYs. Cons: No branches outside of Michigan and Minnesota.

OMB Bank – 4.25% APY (5 months)

Minimum deposit: $1,000. Early withdrawal penalty: 2½ months of interest. Formerly Old Missouri Bank, OMB changed its name in 2023. It has multiple branches in Missouri and Kansas and also is available nationwide through online and mobile banking. Pros: Affordable minimum deposit, easy to open online. Cons: Physical branches limited to Missouri and Kansas.

USAlliance Financial – 4.25% APY (24 months)

Minimum deposit: $500. Early withdrawal penalty: 12 months of interest. Anyone can join USAlliance by agreeing to a free membership in the nonprofit American Consumer Council and keeping at least $1 in a savings account. Established in 1966 to serve IBM employees, USAlliance is headquartered in Rye, New York. Pros: Low minimum deposit, easy path to membership. Cons: No physical branches outside of New York, Connecticut, and Massachusetts.

First National Bank of America – 4.25% APY (120 months)

Minimum deposit: $1,000. Early withdrawal penalty: 18 months of interest. First National Bank of America, founded in 1955, has three locations in Michigan and serves customers nationwide through online banking. It is headquartered in East Lansing, Michigan. Pros: Affordable minimum deposit. Cons: Funds are tied up for 10 years.

Pelican State Credit Union – 4.20% APY (6 months)

Minimum deposit: $500. Early withdrawal penalty: 6 months of interest. Anyone can join Pelican State by making a $5 donation to one of the credit union's affiliated nonprofits and making a $10 opening deposit in a member savings account ($5 goes to a one-time membership fee while the other $5 remains in your savings account as a required minimum balance). Pelican originally was chartered as Department of Hospitals Credit Union in 1956 in Baton Rouge, Louisiana, where it remains headquartered. Pros: Low minimum deposit, high rate available for 6- or 12-month terms. Cons: Charges a one-time $5 membership fee.

Mountain America Credit Union – 4.20% APY (24 months)

Minimum deposit: $500. Early withdrawal penalty: 6 months of interest. Anyone can join Mountain America through a complimentary membership in the nonprofit American Consumer Council and keeping at least $1 in a savings account. Established in the 1930s, MACU is headquartered in Sandy, Utah. Pros: Low minimum deposit, easy path to membership. Cons: Physical branches limited to five western states.

Merrick Bank – 4.20% APY (24, 36, 48, or 60 months)

Minimum deposit: $25,000. Early withdrawal penalty: 6 or 9 months of interest, depending on term. Primarily a credit card issuer and consumer finance provider, Merrick Bank offers online-only certificates of deposit. Pros: Multiple terms with high rates; longest term locks in a top rate until 2031. Cons: Requires $25,000 to open.

NASA Federal Credit Union – 4.20% APY (49 months) & 4.18% APY (60 months)

Minimum deposit: $10,000 ($1,000 for 60-month term). Early withdrawal penalty: All earned interest up to 12 months. Anyone can join NASA FCU by signing up for a free membership in the National Space Society and holding $5 or more in a savings account. NASA FCU is headquartered in Upper Marlboro, Maryland, and has a history that dates back to 1949. Pros: Easy path to membership. Cons: Some terms require $10,000 to open.

TAB Bank – 4.20% APY (60 months)

Minimum deposit: $1,000. Early withdrawal penalty: 6 months of interest. Established in 1998 with a sole location in Ogden, Utah, TAB Bank offers its line of banking products exclusively online. Pros: Affordable minimum deposit. Cons: Online-only.

In the News

The Federal Reserve left its key interest rate unchanged at its April 29 meeting, maintaining a range of 3.50%–3.75%. This is the third consecutive meeting the Fed has made no change after six rate cuts since September 2024. CD rates closely follow the federal funds rate, which means CD rates are expected to decline if the Fed lowers rates later this year.

Why You Can Trust Our Recommendations

Investopedia launched in 1999 and has been helping readers find the best CD rates since 2019. To do this, we collect thousands of CD rates from hundreds of banks and credit unions every weekday. We then rank the best CDs according to APYs, with the top certificates typically paying three to five times as much as the national average—or even more. We then also provide details on factors like CD term, early withdrawal penalty, and minimum opening deposit.

To qualify for our rankings, a CD must be available nationwide and its minimum opening deposit requirement cannot exceed $25,000. It must also be offered by an FDIC-insured bank or NCUA-insured credit union, which protects up to $250,000 in deposits per person and per institution.

Why You Might Not Recognize the Banks in Our Rankings

You typically won't see big names like Chase, Wells Fargo, PNC, Navy Federal, or Bank of America in our rankings of the best CD rates. We research their rates, but they don't make our list simply because they don't pay enough. Extremely large banks typically don't need to attract customers and deposits like smaller institutions do, so they don't need to use rates to win business. In fact, some of the biggest banks pay interest rates very close to zero, but it depends and can change from month to month.

What Is a CD Rate?

A CD rate is an interest rate that shows what a bank or credit union will pay you for depositing your money with them for a certain time in a certificate of deposit (CD). For example, if the rate is 4.50% for a 1-year CD, the bank or credit union will pay you 4.50% in interest on your money for keeping it in the account, untouched, for 12 months. If you deposit $1,000 in that account and keep it there for 12 months, you will earn $45 at the end of the term.

Note that the interest rate and the APY offered on a CD are slightly different. An interest rate is the raw rate you earn on your money, while the annual percentage yield (APY) is the full amount of interest earned after compounding at the end of one year. APYs are therefore usually higher than the interest rate. For example, an interest rate on a 3-month CD could be 4.41% while the APY on that same CD is 4.50%.

How Does a CD Work?

A certificate of deposit (CD) is similar to a bank deposit account. The difference is what you're agreeing to when you sign on the dotted line (even if that signature is now digital). A CD works by locking your deposit up for a set time. When time is up, the CD pays you the set interest rate you agreed to when you opened it. A CD locks you into four specific things:

• The interest rate: Most CDs pay a fixed interest rate. The bank cannot later change the rate and therefore reduce your earnings. On the flip side, a fixed rate may hurt you if rates later rise and you've lost your opportunity to take advantage of higher-paying CDs.
• The term: This is the length of time you agree to leave your money deposited to avoid any penalty (such as six months or 1 year). The term ends on the "maturity date," when you can withdraw your money penalty-free.
• The principal: Except for some specialty CDs that allow add-on deposits, this is the amount you agree to deposit into the CD, at the time of opening.
• The institution: The bank or credit union where you open your CD will determine aspects of the agreement, such as penalties for early withdrawal and whether your CD will be automatically reinvested if you don't provide other instructions at maturity. Credit unions may also require you to open a high-yield savings account or money market account before you open a CD.

Once your CD is established and funded, the bank or credit union will set the terms and conditions, just as it does with other deposit accounts. You'll have either monthly or quarterly statement periods, paper or electronic statements, and usually monthly or quarterly interest payments deposited to your CD balance, where the interest will compound. The money you put into a CD is insured like other deposit accounts—up to $250,000 per customer, per institution.

How Much Does a $10,000 CD Earn in One Year?

If you invest $10,000 in a CD for one year, you could earn at least a few hundred dollars, depending on the interest rate. For example, with an APY of 4.55%, you'd get $455 in interest after one year. CD rates can change, so locking in a high interest rate today could guarantee you the maximum earnings, especially if CD rates drop by next year.

Who Should Get a CD?

If you're looking to save money for a certain amount of time and want to make sure you don't touch it until you need it, consider a top-paying CD. If you're risk-averse and don't want to invest money in the stock market because there's no guarantee you'll see a return, that's another reason to open a CD. CDs offer a fixed rate of return that guarantees your earnings until the CD's term ends. And right now, CD rates are high—over 4% in many cases—so you can earn a solid return on your deposit.

CDs Can Help You Beat Inflation

In January 2026, inflation was 2.4%, while the top APY offered across all CDs was 4.50%. CD rates reached historic highs in 2023 as a result of the Fed's rate-hike policy to cool inflation, which had reached 9.1% in June 2022. CDs can help you combat inflation by paying you interest on your money, even though you may be paying more for goods and services. With inflation trending toward the standard 2% mark the Fed aims for each year, the federal funds rate has been reduced six times since September 2024, and CD rates have subsequently begun to decline.

Right now, the best CD rates are still over 4.25%, which is much higher than what CD rates were just a few years ago. Buying a CD now is a good idea since you'll be able to earn a higher interest rate than you might be able to earn in a year from now. Right now, you're guaranteed a high interest rate, even if the Fed decides to lower rates during the term of your CD. Waiting to buy a CD could mean earning a lower interest rate and losing out on higher guaranteed earnings. So if you are debating whether to buy a CD or not, don't wait.

Types of CDs

• Regular CDs: A CD with a fixed interest rate for a set period, offered by brick-and-mortar banks, online institutions, and credit unions. Also called traditional CDs.
• Variable-rate CDs: The interest rate can change based on the prime rate, the Consumer Price Index (CPI), Treasury bills, or a market index. The term is still fixed. Sometimes called "flex" CDs.
• Jumbo CDs: A CD that requires a larger opening deposit, such as $50,000 or $100,000.
• No-penalty CDs: Exactly what it sounds like—you do not pay a fee for withdrawing your money early.
• Brokered CDs: A CD an investor can buy through a brokerage firm or a sales representative other than a bank or credit union.
• Step-up CDs: Allows you to increase your interest rate when you can; the rate is not fixed for the entire term. Also called a bump-up CD.
• Promotional-rate CDs: Offers a promotional rate that may be higher than a regular CD rate and is only offered for a certain time period.

Online banks or credit unions tend to offer high CD rates because of the lower overhead costs. If you're worried about opening an online bank account, just do your research to ensure the institution comes with FDIC or NCUA insurance. Big banks like Citibank, U.S. Bank, Bank of America, Chase, Capital One, Wells Fargo, and American Express offer CDs too, but they may not pay the highest CD rates.

Pros and Cons of CDs

Pros

• Guaranteed yield for the CD's full term: Most CDs are a fixed-rate product, so you're guaranteed to earn the rate you lock in until maturity, no matter what the Federal Reserve does.
• Higher interest rates than liquid accounts: Banks generally offer higher rates on CDs than on savings and money market accounts.
• Fully predictable earnings and withdrawal date: Because you know the CD's rate and term, you can calculate exactly how much you'll earn and when you can withdraw the funds without penalty.
• Extremely safe: At an FDIC bank or NCUA credit union, up to $250,000 in deposits are federally protected. You're also safe from market volatility.
• Can deter spending temptations: The early withdrawal penalty can help keep you from dipping into your savings for an unplanned purchase, making a CD good for building an emergency fund.

Cons

• Early withdrawal incurs a penalty: Typically calculated as a certain number of months of forfeited interest earnings.
• You can't add to your deposit: With the rare exception of add-on CDs, you can only deposit funds at the time of initial deposit, missing out on compounding a growing balance.
• If CD rates rise, you may miss out on a higher yield.
• If CD rates drop, you may wish you'd chosen a longer CD to extend a competitive yield.
• Typically return less than stocks over long periods, though stocks carry more risk.

How to Choose the Best CD for You

When choosing a CD, consider the following factors:

• Your financial goals: Both short-term and long-term goals are important.
• How much money you have to deposit: CDs have minimums, so if you only have $500, find a CD with that minimum requirement.
• How long you can leave that money untouched: This will help you determine the right term.
• Interest rates offered for your term and minimum deposit: The higher the rate, the more you will earn.
• CD type: Is it a bump-up CD or a regular CD? Choose one that meets your needs and goals.

Once you choose a CD, open the account, and deposit your money to start earning interest. Christine DiGangi of the Investopedia Product Reviews Team noted she had two short-term savings goals, so she looked for a 6-month and a 1-year CD with a high APY to ladder, choosing CIT Bank and Bread Savings because applying online was easy and both offered mobile apps.

What Do You Need to Open a CD?

To open a CD, you'll need some personal information including, but not limited to, your name, address, and phone number. The bank's customer service team may ask you to provide a copy of your license or ID if you don't have an account with that institution already. When you have that info handy, fill out the application: state how you'll fund the CD (electronic transfer or another method), fund the CD, and state how you want to receive the interest (all at the end or in monthly installments).

"Look for the best CD rates and consider laddering the term of the renewals, whenever possible to hedge for potential liquidity needs in the future and not miss opportunities to lock in potential higher rates," said Sibyl Slade, a member of Investopedia's Financial Advisor Council.

How to Build a CD Ladder

Smart CD investors have a specific tactic for hedging against rate changes over time and maximizing their return. It's called a CD ladder, and it enables you to access the higher rates typically offered on 5-year CDs, but with the twist that a portion of your money becomes available every year, rather than every five years. Here's how to do it:

• Take the amount of money you want to invest in CDs and divide it by five.
• Put one-fifth of the funds into a top-earning 1-year CD, another fifth into a top 2-year CD, another into a 3-year CD, and so forth through a 5-year CD. With $25,000 available, that gives you five CDs of varying lengths, each worth $5,000.
• When the first CD matures in a year, take the resulting funds and open a top-rate 5-year CD.
• One year later, your initial 2-year CD will mature, and you'll invest those funds into another 5-year CD.
• Continue this every year until you end up with a portfolio of five CDs all earning 5-year APYs, but with one maturing every 12 months, keeping your money more accessible.

What Happens if I Withdraw From a CD Early?

If you withdraw money early from a CD, you'll likely have to pay an early withdrawal penalty. This is usually a certain number of months' worth of interest that you earned in the CD thus far. For example, if you had deposited $10,000 in a 12-month CD with a rate of 5.00%, and withdrew it early, you might have to pay three months' worth of the interest you had earned. So instead of cashing out $500 at the end of the CD term, you'd walk away with less. Not all CDs have early withdrawal penalties—some no-penalty CDs are available and have more flexibility, but they may come with lower interest rates.

How Are CDs Taxed?

Just like the interest you earn on money in savings, money market, and checking accounts is taxable as interest income at both the state and federal levels, the interest you earn on a CD is too. Your CD earnings will be reported to the IRS in the year they were earned and posted to your account—even though you may not withdraw the funds for one or more years into the future. For example, if you have $1,000 in a 1-year CD with a 5.00% interest rate, you'll earn $50 in interest. You owe taxes on that $50, but not on the $1,000 principal.

If you decide to add a CD to your IRA, you may not have to pay taxes until you're ready to withdraw in retirement. You can add CDs in both traditional and Roth IRAs. With a Roth IRA, you are not penalized for withdrawing money from the account if it's open for at least five years because it's funded with after-tax dollars. However, if you want to withdraw money from your Roth IRA CD before it matures, you will be hit with a CD early withdrawal penalty. If your CD matures in a traditional IRA before your retirement age, then you may not be able to withdraw that money without first paying taxes and fees.

Alternatives to CDs

CDs vs. Traditional Savings Accounts

Traditional savings accounts tend to offer lower interest rates. Banks or credit unions with no high-yield savings account options may only offer traditional savings accounts that pay 0.01% to 0.10%. While the national average for savings rates is 0.38%, according to the FDIC, many banks pay much less. For example, Wells Fargo's Way2Save account pays 0.01% APY and Chase offers just 0.01% with its Chase Savings account. When interest rates are high, the top CD rate can be up to 600x the rate you may earn in a traditional savings account.

CDs vs. High-Yield Savings Accounts

If you aren't sold on committing your funds for a set time, or can't afford to because you may need the money soon, a high-yield savings account may be a better option. You'll be free to withdraw and deposit funds as you like, though some institutions limit how many withdrawals you can make each month. Some savings accounts may also require a minimum balance.

CDs vs. Money Market Accounts

A money market account may serve your needs if you're looking for other high-yield accounts. Money market accounts offer the feature of allowing you to write checks on the account, and some come with debit cards, but they tend to act more like savings accounts. They may also come with minimum deposit or balance requirements, and their rates can easily compete with savings account rates.

CDs vs. Bonds

If you're interested in venturing into the world of bonds, you could put cash savings into U.S. government I bonds, which are designed to track or beat the inflation rate. Or you could invest in U.S. Treasuries, in which you lend money to the U.S. government for a fixed amount of time; the Treasury notes with durations of four weeks to one year are called T-Bills. Another option is corporate and municipal bonds. Though it's difficult to research individual bonds on your own, you can easily invest in a bond mutual fund or bond exchange-traded fund that is diversified across many bond issues. You can also enter and exit these funds at any time.

CDs vs. Brokerage Accounts

If you have a brokerage account, you can hold savings in the brokerage's cash reserve account or their money market fund (not to be confused with the money market accounts offered by banks). Just be sure to research what rate you'll earn, because in many cases these brokerage cash accounts pay far less than what you can earn in an outside CD, savings account, or money market account. Some brokerages may also offer brokered CDs.

CDs vs. Annuities

An annuity is a type of fixed-income investment provided by financial institutions. You can buy an annuity and pay it monthly or in a lump sum. Then, in the future, you receive fixed monthly payments. Annuities are insurance contracts that can guarantee income. While they are similar to a CD in that the income is guaranteed as long as you follow the rules, they are not as short-term. Annuities are most often used in retirement planning. CDs can also be used for retirement planning, but they are usually bought and held for terms of 6 months to 5 years rather than an annuity, which could be owned for 20 years. There may also be different withdrawal rules and tax consequences with annuities.

CDs vs. Treasury Bills

Treasury bills are debt obligations backed by the U.S. government, usually with maturities of one year or less. That timing is similar to shorter-term CDs, but Treasury Bills may not offer the same level of return. Rates are comparable, ranging from 4.10% to 4.59% as of Nov. 7, 2024, but they can fluctuate daily. With T-bills, you buy them at a discount and receive the full amount back when they mature. For example, you might buy a $1,000 T-bill for $950; when it matures, you get $1,000, or $50 more than you paid—that $50 is the interest. CDs are a little less complicated, where you put in a set amount and receive a fixed interest rate at maturity.

How We Find the Best CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000. Banks must be available in at least 40 states. While some credit unions require you to donate to a specific charity or association to become a member, we exclude credit unions whose donation requirement is $40 or more.

Frequently Asked Questions

Who has the best CD rates?

The highest CD rate right now is 4.50% APY from Nuvision Credit Union on a 5-month term for deposits from $1,000 to $5,000. The top rate could change, though, as interest rates fluctuate daily and institutions can offer high-rate CDs for as long or short a time as they want.

Are CDs safe?

CDs are safe because they are usually offered by banks or credit unions insured by the FDIC or NCUA, meaning your money across all your accounts is insured for up to $250,000. CDs also come with virtually no risk since the interest rate is usually fixed; you'll know what returns to expect before even opening the CD.

How have CD rates changed over time?

The top CD rates continually change based on the U.S. interest rate environment. To combat high inflation between 2021 and 2023, the Federal Open Market Committee dramatically raised the fed funds rate to its highest level in more than 20 years, pushing CD rates to a peak of 6.00% in 2024. Compare that to 2021, when the top CD rate was around 1.35%.

Can I get 6% on a CD?

There are currently no nationally available CDs offering 6% APY, but you may find local offers that are higher than the best national CDs. Although 6% CDs may have been available in the past, the top options today tend to be below 5%.

Outlook

With the Federal Reserve holding its key rate at a range of 3.50%–3.75% for the third consecutive meeting after six cuts since September 2024, CD rates have begun to decline and are expected to fall further if the Fed lowers rates later this year. The best nationally available CD rate is currently 4.50% APY from Nuvision Credit Union. Because today's top rates still exceed 4.25% and remain well above the 0.38% national savings average, locking in a competitive CD now can guarantee a strong, fixed return even as rates trend lower.