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Rates on certificates of deposit have reversed course this summer. In contrast to the general drops early in 2026, CD rates have started to increase. There were about 35 rate increases in June, which nearly doubled in July, according to a NerdWallet data analysis of 50 financial institutions. The Fed has kept its rate steady so far this year, but rate hikes are looking more likely than rate cuts amid the ongoing economic uncertainty.
CDs’ fixed rates can offer guaranteed returns for several months or years, and locking in a high CD rate can mean earning strong yields even if the economy enters a low-rate environment. Here’s an overview of where CD rates might be headed.
» COMPARE: NerdWallet’s best CD rates
When is the next Fed meeting?
The Federal Open Market Committee's next meeting is September 15-16, 2026. This is the next scheduled time that the FOMC could modify the federal funds rate.
CD rates remain some of the highest in more than a decade. A big reason why rates have been at such highs goes back to the frequency with which the Fed increased its federal funds rate in 2022 and 2023. The Fed pushed up the target range of this Fed rate, which is the interest rate banks use to borrow money from each other, as one tool to curb inflation. From March 2022 to July 2023, the Fed raised its rate 11 times. The Fed made three rate cuts each in 2024 and 2025. But with the threat of inflation rising more than dropping in mid-2026, the Fed may raise instead of lower its rate.
Banks generally adjust their rates on new CDs in the same direction as Fed rate changes. Credit unions — the not-for-profit equivalent to banks — similarly raise rates on their CDs, known as share certificates. Learn more about what Fed rate decisions mean for CDs and savings accounts.
CD rate trends
- High-yield CDs tend to be at online banks and online credit unions, which have rates that are whole percentages higher than national average CD rates. For example, the national averages are 1.68% for one-year CDs and 1.36% for five-year CDs. Top one-year yields are around 4.00%, and the best five-year CD rates are closer to 3.85%.
- Short-term CD rates have had higher yields than longer-term rates since November 2022, according to a NerdWallet analysis of national average and high-yield CDs.
Member FDIC
E*TRADE Certificate of Deposit
APY
4.05%
Term
6 months
Member FDIC
Synchrony Bank CD
APY
4.15%
Term
14 months
Member FDIC
Bread Savings® CD
APY
4.25%
Term
9 months
CD rate forecast: 2026
The Fed kept its rate unchanged after its fifth meeting of 2026, which concluded on July 29. The target rate range remains at 3.50% to 3.75%. Projections suggest that the Fed may not drop its rate but increase it this year, according to CME FedWatch (accessed on July 29, 2026). When the Fed rate changes, CD rates will likely follow in the same direction, though it’s up to each bank and credit union if and when that occurs.
Inflation is expected “to remain above the Federal Reserve’s 2% target due in part to geopolitical events, including trade policy and the ongoing military action in the Middle East," according to a March 2026 forecast from the American Bankers Association’s Economic Advisory Committee. The committee consists of chief economists from some of the largest U.S. banks.
The Fed intends to have its rate in the 3.50% to 4.25% range within the next year, according to the Fed’s June 2026 projections. Uncertainty remains especially as tariffs, gaps in federal economic data and global conflict complicate the economic picture.
🤓Nerdy Tip
The Fed has kept its rate steady in 2026, though the anticipated direction has shifted from downwards to upwards. As a result, banks shifted from dropping to raising CD rates this summer. Excellent interest rates are still available on certificates of deposit.Want to see best CDs by term?
View a curated list of our picks based on competitive rates and terms.
Take advantage of today’s CD rates
Lock in CD rates when they’re high. CDs are typically best for specific goals, such as protecting some savings from inflation’s effects or earmarking a fixed sum for a large purchase within five years, such as a car or house.
Remember specialty CDs. If you’re unsure about getting a CD now, know that some types of CDs offer flexibility. Bump-up CDs allow you to increase the rate at least once during a CD term if new CD rates go up. In a falling-rate environment, it’s more likely for bump-up CD rates to stay the same. No-penalty CDs give you a fixed rate plus the opportunity to jump ship for free.
Consider a CD ladder to hedge your bets. A CD ladder strategy reduces the stress around timing your CDs. Split up an investment equally into several CDs of different term lengths, such as one year, two years and three years. When each CD matures, reinvest in a longer-term CD or, if you need the cash, withdraw. Ideally, though, you can have multiple long-term CDs that mature at staggered intervals. You mix short-term CD access with long-term rates.
Compare other short-term ways to save and invest. For more everyday savings with the same low risks as CDs, consider a high-yield savings account or money market account, which have top rates around 4% APY. Or, if you’re looking to invest, consider more ways to invest your savings.
More fed rate coverage
Article sources
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- 1.Board of Governors of the Federal Reserve System. Federal Open Market Committee: Meeting calendars, statements, and minutes (2020-2026). Accessed Jun 17, 2026.
- 2.American Bankers Association. Bank Economists See Moderate Growth, Persistent Inflation Amid Geopolitical Uncertainty. Accessed Jul 29, 2026.
