The gap between what your bank pays on savings and what the best certificates of deposit offer has grown wide enough to cost you hundreds of dollars a year. A one-year CD at the average American bank earns roughly 1.55% annually, a figure that barely registers against consumer prices that climbed 3.8% over the past 12 months.
A small group of online banks, however, is paying more than double that average, with top yields reaching 4% APY and above on select terms. The standout offer is from Marcus by Goldman Sachs, which pays 4% APY on its nine-month certificate of deposit, with a minimum deposit of just $500.
The Federal Reserve has held its benchmark rate steady at 3.5%-3.75% at four consecutive meetings dating back to December 2025, though forecasts for additional cuts have been pared back following April’s 3.8% CPI reading.
Marcus by Goldman Sachs leads with 4% APY across shorter CD terms
The nine-month CD from Marcus by Goldman Sachs pays 4% APY with a $500 minimum deposit, making it the highest rate from a major financial institution as of May 18, 2026. Goldman Sachs Bank USA is a member of the FDIC, which means deposits are insured by the federal government up to $250,000 per depositor, per institution.
Marcus also maintains strong yields across its broader CD lineup, including 4.00% APY on a six-month term and 3.90% APY on a 12-month CD. Because certificate of deposit rates can change frequently, published APYs should be verified directly through Marcus at the time of publication
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One feature that distinguishes Marcus from several competitors is its 10-day CD rate guarantee, which automatically applies the highest published rate for a depositor’s selected term if the APY increases within the first 10 days after account opening, Marcus noted on its website.
Marcus also keeps the barrier to entry low across its entire CD shelf. Every term from six months to six years requires the same $500 minimum deposit, a threshold that undercuts several competitors offering comparable yields. Limelight Bank, for example, requires $1,000 to open its top-paying six-month CD, and Bask Bank sets the same floor on its one-year option.
How to find the best CD rates
Not all CDs pay the same, and settling for the first rate you see could cost you hundreds of dollars in lost interest over a single term. A few smart moves before you commit can make a real difference in what your money earns.
Compare rates across multiple banks
CD yields can vary widely between banks and credit unions, making it worthwhile to review multiple options before opening an account. Online comparison tools can make it easier to identify the most competitive offers.
Online banks consistently pay more
Digital-only banks often pass lower operating costs on to customers through stronger CD rates. As a result, some of the highest yields in the market are frequently found online.
Watch the minimum deposit
Some of the top-paying CDs require larger opening deposits to qualify for the advertised rate. Matching the deposit amount to the account requirements is important when evaluating options.
Read the fine print on penalties and renewals
Interest rates are only one part of a CD’s structure. Early withdrawal penalties, maturity terms, and automatic renewal policies can significantly affect flexibility. Certain products, including no-penalty CDs, allow withdrawals before maturity without triggering a fee.
Source: Yahoo Finance report on today’s best CD rates.
Best CD rates available across multiple terms in May 2026
Goldman Sachs is not the only institution offering yields near the 4% threshold, as several online banks and credit unions are competing aggressively for deposits across various term lengths.
While the Federal Reserve has paused rate adjustments for now, the broader expectation is that we are at or near the peak of the rate cycle
The gap between the national average (1.96%) and top yields (near 4%) means the difference between shopping around and accepting a default rate can run into the hundreds of dollars per year, according to Bankrate.
Top CD rates by term as of May 18, 2026
- 6-month CD: Limelight Bank offers 4.08% APY with a $1,000 minimum deposit, the highest 6-month yield currently available on the market.
- 9-month CD: Marcus by Goldman Sachs offers 4% APY with a $500 minimum deposit, the highest rate available for this term length.
- 1-year CD: Marcus by Goldman Sachs and Bask Bank both offer 4% APY, with minimum deposits of $500 and $1,000, respectively.
- 18-month CD: America First Credit Union offers 3.95% APY with a $500 minimum deposit, providing a solid mid-range option for savers with a slightly longer horizon.
- 2-year CD: America First Credit Union offers 4.05% APY with a $500 minimum deposit, the highest yield available for this term as of the reporting date.
Source: Yahoo Finance Report.
The clock is ticking on 4% CD yields
The sharp divide between average bank CD rates and the top online offers has become one of the clearest trends in the savings market this year. While many traditional banks continue to pay modest yields, institutions like Marcus by Goldman Sachs and several credit unions are competing aggressively, offering rates near 4% APY across multiple terms.
Those elevated returns have been supported by the Federal Reserve’s higher-rate environment, but expectations for future rate cuts are already reshaping forecasts for the rest of 2026. Bankrate’s 2026 forecast projects the top one-year CD APY will fall to 3.5% by year-end, which would put today’s near-4% offers out of reach.
Related: CD rates at big banks may cost you nearly 1 percent
