Best CD Rates June 2026 — Ranked by Term & APY
Quick take: The yield curve is inverted — 1-year CDs (~4.50-4.65%) pay more than 5-year CDs (~4.10-4.30%). Top rates by maturity below, plus the honest math: at 3+ years, MYGAs out-yield CDs by 100-175 bps with tax deferral on top.
How we rank
This isn't a paid placement list. Our methodology, in order of weight:
| Factor | Weight | What we look at |
|---|---|---|
| APY | 50% | Headline rate at the standard minimum deposit. We ignore inflated "tiered jumbo" rates that require $100K+. |
| FDIC / NCUA backing | 20% | All ranked institutions are insured to $250K. Credit unions (NCUA) and banks (FDIC) get equal credit — the coverage is identical. |
| Minimum deposit | 10% | $0-$2,500 minimums score best. Anything above $5K starts to lose points. |
| Early withdrawal penalty | 10% | Penalties from 60 days (great) to 365 days (harsh). Shorter penalties = more optionality. |
| Institutional stability | 10% | Bauer/Weiss ratings, total assets, history of FDIC/NCUA call reports. |
We do not weight: app design, branch network, marketing spend, or any institution's affiliate program. Rates were pulled from public bank/CU websites as of June 2026 and rounded to the nearest 5 bps.
🏆 Best Overall — June 2026
"Best overall" is anchored to the 1-year term since that's where rates are highest in the current inverted curve and where most savers actually park money.
Best 6-Month CD Rates
Use case: Cash you'll need within a year but want to earn more than savings. The 6-month curve is liquid and competitive — don't pay early-withdrawal penalty to "upgrade" later.
Best 1-Year CD Rates
Use case: The fattest part of the curve right now. 1-year CDs out-yield 2/3/5-year CDs by 30-50 bps. Trade-off: reinvestment risk in 12 months.
Best 18-Month CD Rates
Use case: Slightly longer than 1-year for marginal extra yield. PenFed's 15-month special is the standout — promotional but real.
Best 2-Year CD Rates
Use case: The first maturity where 3-yr MYGAs start to look meaningfully better. If you have flexibility on the term, stretch to 3 years and compare to a MYGA.
Best 3-Year CD Rates
Honest note: Top 3-year MYGAs are paying ~5.10-5.30% — that's 100+ bps above the best 3-year CD, with tax deferral. If this is non-emergency money, get a MYGA quote before committing.
Best 5-Year CD Rates
Honest note: This is the most lopsided maturity right now. Top 5-yr MYGAs pay 5.30-5.60% — a $250K deposit ends up ~$28K-$33K ahead in a MYGA after 5 years, plus you keep tax deferral. See Best 5-Year CD Rates 2026 for the full breakdown.
Best 7+ Year CD Rates
Honest note: A 7-year CD at ~4.10% with a 365-day early-withdrawal penalty is hard to justify when 7-yr and 10-yr MYGAs pay 5.50%+ and let you withdraw 10% per year free. We'd skip this maturity in CDs entirely.
CDs vs MYGAs — the honest comparison
CDs and Multi-Year Guaranteed Annuities (MYGAs) are sister products: both pay a fixed rate for a fixed term, both protect principal. The differences that matter:
| Feature | Top 5-yr CD | Top 5-yr MYGA |
|---|---|---|
| Current rate | ~4.10% APY | 5.30-5.60% APY |
| Backing | FDIC / NCUA $250K | State guaranty assoc. ($250K-$500K) |
| Tax treatment | 1099-INT every year | Tax-deferred until withdrawal |
| Liquidity | All-or-nothing; 180-day penalty | 10% free withdrawal per year |
| Rate guarantee | Locked for term | Locked for term |
| Compounding drag | Yes — annual tax bite | None — full compounding |
| 1035 exchange at maturity | N/A (taxable rollover) | Yes — defer tax indefinitely |
Where CDs win
- 1-2 year money — top 1-yr CDs (~4.60%) currently beat top 2-3 yr MYGAs on a pre-tax basis for a short window
- Funds under $100K with potential need access — CD 90/180-day penalty is more forgiving than a multi-year MYGA surrender schedule for small balances
- Funds inside an IRA where tax deferral is already automatic — the MYGA's tax advantage neutralizes
- FDIC/NCUA absolutism — if direct U.S. government backing is non-negotiable, CDs win on insurance type
Where MYGAs win
- 3+ year money — 100-175 bps higher yield with tax deferral compounding the advantage
- Anyone in a 22% or higher marginal bracket — annual CD 1099-INT drag is real money
- Need partial liquidity — 10% free withdrawal per year on most MYGAs vs. all-or-nothing CD penalties
- Want to defer income to retirement — MYGA gains taxed when withdrawn, ideally in lower retirement bracket
The 3+ year MYGA vs. CD trade-off isn't close on the math. See Best MYGA Rates 2026 for current top-of-market MYGA rates and Best 5-Year CD Rates 2026 for the head-to-head at the worst CD maturity.
Related reading
- Best CD Rates 2026 — bank rates + the smarter safe-money alternative
- Annuity vs CD — the honest after-tax math
- PenFed Credit Union CD Review — open to all, 15-month special
- Navy Federal Credit Union CD Review — best 1-yr rate, military/family eligible
- Marcus by Goldman Sachs CD Review
- Sallie Mae Bank CD Review
- Best 5-Year CD Rates 2026 — the worst CD maturity vs. MYGAs
- Best MYGA Rates 2026 — the alternative for 3+ year money
- 5-Year MYGA Peace of Mind — head-to-head with 5-yr CD
Bottom line
For 6-18 month money: top CDs from Navy Federal, Sallie Mae, Marcus, PenFed, and Barclays at ~4.30-4.65% are excellent. The 1-year is the sweet spot. For anything 3 years or longer, the math has shifted — top MYGAs pay 100-175 bps more, with tax deferral. If you're considering a 3, 5, or 7-year CD with serious money ($50K+), get a side-by-side MYGA quote before locking in.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers and 20+ banks/credit unions. Phone: 213-414-2808. Email: hans@goldsteinco.net.
Quick CD FAQ
📩 MYGA vs CD — get my independent take before locking in
Talk to a licensed independent expert. Hans.
Top 5-year MYGAs pay 100-175 bps more than top 5-year CDs, with tax deferral on top. On $250K over 5 years that's $25K-$33K difference. Before you commit to a 3, 5, or 7-year CD, see what the MYGA market is offering at your exact term and amount.
Drop your info — within 24 hours, you'll get a written comparison of the CD you're considering vs. 2-3 MYGA alternatives, after-tax math, and a no-pressure 15-minute call if you want one.
📞 Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This ranking reflects publicly available rate sheets from bank and credit union websites as of the date stated above. CD rates change frequently — typically weekly. Always confirm current APYs directly with the institution before opening. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and is not affiliated with any bank or credit union ranked. No compensation has been received from any institution in connection with this ranking. MYGA comparison rates reflect top-of-market carrier offerings as of the publication date and are subject to availability, suitability, and underwriting. Annuities are long-term contracts with surrender charges and are not suitable for funds you may need before the end of the surrender period. FDIC and NCUA coverage details are subject to change; consult FDIC.gov or NCUA.gov for current rules. State guaranty association coverage for annuities varies by state.