CD APYs change often. Each rate shows the date the bank or credit union published it. Check current rates before you open a CD; your rate is locked once the CD is funded. Picks are based on rate, minimums, penalties, and insurance, not on partnerships. All links are plain links.
Certificates up to 3.50% APY (5- and 7-year), effective 2026-10-09; NCUA-insured
Key takeaways
Updated 2026-10-28.
A CD can lock in a rate for a set term, which some retirees use for money with a known future date.
Early withdrawal penalties vary widely; read them before you commit, especially if health or care costs could change your plans.
Bank CDs are FDIC-insured and credit union certificates NCUA-insured, within coverage limits. Brokered CDs work differently, so read how they’re held and sold.
We’ll publish dated APYs only after checking them; always confirm the current rate with the bank.
Our reviews
Pick #1
Synchrony Bank CDs
Best overall
Our rating: Not star-rated. Qualitative award; see Methodology.
Key data (checked 2026-10-28)
APYs (fetched 2026-10-28; the page's own as-of date did not render; check current rates): 3-month 0.25% · 6-month 4.20% · 9-month 4.50% · 12-month 4.30% · 18-month 4.50% · 24-month 4.60% · 36-month 4.65% · 48-month 4.65% · 60-month 4.75%
No minimum deposit
Synchrony Bank, Member FDIC; insured up to $250,000 per ownership category
Why we chose it
Synchrony had the strongest rates on longer terms, which helps if you're building a CD ladder.
Pros
Strong rates on 2- to 5-year terms
No minimum deposit
Wide range of terms for laddering
Cons
3-month term pays very little
Online-only
Who should skip it
Anyone who might need the money before the term ends; check the early-withdrawal penalty first.
Figures change often. Each row shows the date we checked it; confirm on the provider's site before you decide.
CD
12-month APY
Best APY shown (term)
As of
Minimum
Insurance
Synchrony
4.30%
4.75% (60-month)
2026-10-28 (fetched)
None
FDIC
Marcus
4.40%
4.40% (12-month to 6-year)
2026-10-28
$500
FDIC
American Express
3.65%
4.40% (10- and 22-month)
2026-10-28
None
FDIC
Ally No Penalty CD
#pending
2.90% headline
2026-10-27
None
FDIC
PenFed
3.20%
3.50% (5- and 7-year)
2026-10-09
$1,000
NCUA
Check current rates: APYs may have changed since the dates shown.
How to choose
A certificate of deposit (CD) pays a set rate if you leave money in place for a set term, from a few months to several years. For retirees, CDs can match savings to known future costs, such as next year’s property taxes or a planned car purchase.
Check the early withdrawal penalty. This is the most important fine print. Penalties are often stated as a number of months of interest and can eat into principal on some CDs. If there’s a chance you’ll need the money for care or medical costs, consider a shorter term or a no-penalty CD.
Confirm insurance and titling. Bank CDs are covered by FDIC insurance and credit union certificates by NCUA insurance, up to $250,000 per depositor, per institution, per ownership category. Spreading larger balances across institutions or ownership categories can keep everything covered.
Understand brokered CDs. CDs bought through a brokerage can be FDIC-insured at the issuing bank, but they may be sold on a secondary market before maturity at a gain or loss instead of with a fixed penalty. Ask how that works before buying.
Consider a ladder. Splitting money across several maturities (for example 6, 12, 18, and 24 months) means part of your money becomes available regularly, and you aren’t betting everything on today’s rate.
Watch the maturity date. Many CDs renew automatically at whatever rate is then offered. Set a reminder for the grace period.
Taxes. CD interest is generally taxable each year, even if you don’t withdraw it, unless held inside an IRA.
Frequently asked questions
Are CDs safe?
Bank CDs are FDIC-insured and credit union certificates NCUA-insured within coverage limits. They don’t lose value from market swings if held to maturity.
What if I need the money early?
Most CDs charge an early withdrawal penalty. Check the exact terms first.
What is a CD ladder?
Spreading money across CDs that mature at different times so cash becomes available regularly.
What’s a brokered CD?
A CD bought through a brokerage. It may be sold before maturity at market price rather than with a set penalty.
Can I hold a CD in an IRA?
Many banks offer IRA CDs. RMD rules still apply.
What happens when a CD matures?
Many renew automatically unless you act during the grace period.
Is CD interest taxable?
Generally yes, in the year it’s earned, unless the CD is held in a tax-advantaged account.
Methodology
We reviewed 6 providers' public pricing, rate, and disclosure pages on 2026-10-28. We don't assign star scores. Each pick gets a qualitative "Best for…" award based on the criteria below, and "Preliminary" marks picks where our research is still thin. Partner or affiliate status plays no role in which providers we pick or how we rank them.
We evaluated providers on:
APY by term (dated), minimum deposit
Early withdrawal penalty terms (plain-language summary)
Insurance verified (FDIC/NCUA); brokered CD handling explained
Term range for laddering (short to long)
Renewal/grace period rules at maturity
Special features: no-penalty CDs, bump-up/add-on CDs, IRA CDs
All rates, fees, and terms are shown with the date checked; check current rates before acting. Affiliate relationships do not affect scores.
YouRetire Editorial writes for families planning retirement and care. We use regulator and government sources, show when we last checked data, and don’t let partners buy ratings. Read how we review and our editorial standards.
This guide is educational and not individual financial, tax, insurance, or legal advice.
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