Best CD Rates 2026
Best CD Rates 2026
| Term | Top APY | Source, as of |
|---|---|---|
| 1-year | 4.50% (HAB Bank) | DepositAccounts, 9/25/2026 |
| 3-year | 4.55% (North American Savings Bank) | DepositAccounts, 9/25/2026 |
| 5-year | 4.50% (Bread Savings, Popular Direct) | DepositAccounts, 9/25/2026 |
| 5-year MYGA, A-rated carriers | 5.50%-6.05% | public carrier rate sheets, 10/14/2026 |
Full table by term below. Rates change often; confirm with the bank before you open.
If you're parking money in a CD for 12 months or longer, you should also know about MYGAs, Multi-Year Guaranteed Annuities. They're the closest thing to a "CD with a higher rate and tax deferral" that exists, and most CD shoppers don't know they're an option.
First, the CD rates. Then the comparison.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Top CD rates by term (checked September 25, 2026)
| Term | Top APY | Bank (minimum) | Source |
|---|---|---|---|
| 6-month | 4.50% | HAB Bank ($1,500) | DepositAccounts, 9/25/2026 |
| 1-year | 4.50% | HAB Bank ($1,500) | DepositAccounts, 9/25/2026 |
| 18-month | 4.40% | E*TRADE ($0); Merrick Bank ($25,000) | DepositAccounts, 9/25/2026 |
| 2-year | 4.45% | Merrick Bank ($25,000); Popular Direct ($10,000) | DepositAccounts, 9/25/2026 |
| 3-year | 4.55% | North American Savings Bank ($1,000) | DepositAccounts, 9/25/2026 |
| 5-year | 4.50% | Bread Savings ($1,500); Popular Direct ($10,000) | DepositAccounts, 9/25/2026 |
Top-rate CDs are typically at online banks (the table above; also Marcus, Ally, Synchrony, Capital One 360) and credit unions. Discover no longer opens new CDs since Capital One acquired it. Brick-and-mortar branch banks pay 1-2% less for the convenience of a local branch.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
What you give up to chase rate
- Lock-in. Take it out early, pay 3-6 months of interest as penalty.
- Annual tax drag. CD interest is taxed every year, even if you don't withdraw it.
- No tax-deferral. Inside an IRA this doesn't matter. Outside an IRA, you lose ~20-32% of the interest annually to taxes.
When the MYGA beats the CD
| 5-Year CD | 5-Year MYGA | |
|---|---|---|
| Top rate (Sept. 2026) | 4.50% APY (DepositAccounts, 9/25/2026) | 5.50%-6.05% (A-rated; public carrier rate sheets, 10/14/2026) |
| Tax treatment | Annual | Tax-deferred |
| Free withdrawal | None | Usually 10%/year |
| Backing | FDIC ($250K) | State Guaranty (~$250K) |
| At maturity | Cash out (taxable outside IRA) | Cash out, roll tax-free, or annuitize |
For a 60-year-old in the 24% bracket with $100,000 of taxable savings parked for 5 years, using a 4.50% CD and Athene MaxRate’s 5.85% 5-year rate (rate cards effective September 25, 2026, $100,000+):
- CD nets ~$118,300 after annual tax drag
- MYGA nets ~$125,000 after deferred tax at maturity
- MYGA wins by ~$6,700 on the same $100K
Full math: Annuity vs CD →
When to stay with the CD anyway
Three cases where I tell clients not to bother with a MYGA:
- The money might be needed within 1-2 years. MYGA surrender charges are 8-9% in year 1.
- Under FDIC limit AND federal backing matters more than rate. CDs are federally insured; MYGAs are state-guaranteed.
- Small deposit (under $5K). Most top MYGAs have $10K minimums.
What about CD ladders?
A CD ladder spreads deposits across multiple maturities for blended liquidity and rate. The same strategy works with MYGAs, usually better, because top MYGA rates are higher and most MYGAs allow 10%/year penalty-free withdrawal already.
Typical hybrid I recommend: 30% in a high-yield savings (instant), 30% in a 3-year MYGA, 40% in a 5-year MYGA. Beats any pure CD ladder on rate AND has built-in 10%/year liquidity at each rung.
Get the comparison for your money
*Hans Goldstein is an independent insurance broker, NPN 20602398. CD rates from DepositAccounts, updated September 25, 2026; MYGA figures from carrier rate cards and public carrier rate sheets, October 14, 2026. CDs are bank products insured by FDIC; annuities are insurance products backed by issuing carriers and state guaranty associations.*
Related reading
- Best MYGA Rates
- Best Fixed Annuity Rates
- Annuity vs CD, the honest math
- Best CD Rates 2026
- MYGA carrier-by-carrier reviews
- CD bank-by-bank reviews
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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