Rates surveyed via Bankrate on May 19, 2026 across 8 leading online banks. APYs and minimums change frequently. Confirm current terms directly with the bank before opening an account.
Best CD Rates Today (May 2026)
The top CD APYs available right now range from 3.85% on a 3-month term to 4.20% on a 10-year term. The headline number is roughly 4.10% across most terms between 6 months and 5 years. Here are the leading rates by term length.
| Term | Top APY | Institution | Minimum |
|---|---|---|---|
| 3 months | 3.90% | Popular Direct | $10,000 |
| 6 months | 4.10% | Popular Direct | $10,000 |
| 9 months | 4.15% | Bread Savings | $1,500 |
| 11 months | 4.15% | LendingClub | $500 |
| 1 year | 4.10% | E*TRADE | No minimum |
| 13 months | 4.10% | First National Bank of America | $1,000 |
| 18 months | 3.90% | Limelight Bank | $1,000 |
| 2 years | 4.00% | E*TRADE | No minimum |
| 3 years | 4.00% | E*TRADE | No minimum |
| 4 years | 4.00% | First National Bank of America | $1,000 |
| 5 years | 4.10% | E*TRADE | No minimum |
| 7 years | 4.10% | First National Bank of America | $1,000 |
| 10 years | 4.20% | First National Bank of America | $1,000 |
Source: Bankrate, May 19, 2026. APYs current as of the survey date.
CD Rates by Bank
Below are the full term lineups from the eight banks tracked in this survey. Each is FDIC-insured and offers online account opening. Click any bank name to verify current rates directly.
LendingClub Bank CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 6 months | 3.90% | $500 |
| 11 months | 4.15% | $500 |
| 1 year | 3.50% | $500 |
| 18 months | 3.50% | $500 |
| 2 years | 3.50% | $500 |
| 3 years | 3.45% | $2,500 |
| 5 years | 3.40% | $500 |
LendingClub’s 11-month promo at 4.15% is one of the top rates on this list, with only a $500 minimum. Longer terms drop sharply.
Bread Savings CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 3 months | 3.80% | $1,500 |
| 6 months | 4.00% | $1,500 |
| 9 months | 4.15% | $1,500 |
| 1 year | 3.85% | $1,500 |
| 18 months | 3.85% | $1,500 |
| 2 years | 3.85% | $1,500 |
| 3 years | 3.85% | $1,500 |
| 4 years | 3.85% | $1,500 |
| 5 years | 3.85% | $1,500 |
Bread Savings (a Comenity Capital Bank brand) offers an unusually flat rate curve at 3.85% across most terms, making it a simple choice when you don’t want to optimize by term.
E*TRADE CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 6 months | 4.05% | No minimum |
| 1 year | 4.10% | No minimum |
| 2 years | 4.00% | No minimum |
| 3 years | 4.00% | No minimum |
| 5 years | 4.10% | No minimum |
E*TRADE (now owned by Morgan Stanley) is the only bank on this list with no minimum deposit. Strong rates at every term offered.
Capital One 360 CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 6 months | 3.20% | No minimum |
| 9 months | 3.20% | No minimum |
| 11 months | 4.10% | No minimum |
| 1 year | 3.90% | No minimum |
| 18 months | 3.60% | No minimum |
| 2 years | 3.50% | No minimum |
| 30 months | 3.50% | No minimum |
| 3 years | 3.50% | No minimum |
| 4 years | 3.50% | No minimum |
| 5 years | 3.60% | No minimum |
Capital One’s standard terms are middle of the pack, but the 11-month promo at 4.10% is competitive with the top of the market.
First National Bank of America CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 3 months | 3.60% | $1,000 |
| 6 months | 3.85% | $1,000 |
| 7 months | 4.05% | $1,000 |
| 1 year | 3.95% | $1,000 |
| 13 months | 4.10% | $1,000 |
| 18 months | 3.80% | $1,000 |
| 2 years | 3.80% | $1,000 |
| 3 years | 3.80% | $1,000 |
| 4 years | 4.00% | $1,000 |
| 5 years | 4.00% | $1,000 |
| 6 years | 4.00% | $1,000 |
| 7 years | 4.10% | $1,000 |
| 8 years | 4.10% | $1,000 |
| 9 years | 4.10% | $1,000 |
| 10 years | 4.20% | $1,000 |
First National Bank of America (a Michigan-based community bank) is the only institution on this list offering terms beyond 5 years. The 10-year CD at 4.20% is the longest CD lock available among the banks surveyed.
Popular Direct CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 3 months | 3.90% | $10,000 |
| 6 months | 4.10% | $10,000 |
| 1 year | 4.05% | $10,000 |
| 18 months | 3.90% | $10,000 |
| 2 years | 3.85% | $10,000 |
| 3 years | 3.85% | $10,000 |
| 4 years | 3.30% | $10,000 |
| 5 years | 3.30% | $10,000 |
Popular Direct (online arm of Popular Bank) leads the short end of the curve with the top 3- and 6-month rates on this list. The $10,000 minimum is higher than most.
Limelight Bank CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 6 months | 4.08% | $1,000 |
| 1 year | 4.03% | $1,000 |
| 18 months | 3.90% | $1,000 |
| 2 years | 3.80% | $1,000 |
| 3 years | 3.65% | $1,000 |
| 5 years | 3.30% | $1,000 |
Limelight (an online division of Capital Community Bank in Utah) markets itself as a green-banking option and is competitive at the short end with a $1,000 minimum.
How CD Rates Work
A certificate of deposit (CD) pays a fixed annual percentage yield (APY) for a set term in exchange for keeping your money on deposit until maturity. The APY is locked the day you open the account. If you withdraw before maturity, you typically forfeit 3 to 12 months of interest depending on the bank’s penalty schedule.
CD rates loosely track the federal funds rate set by the Federal Reserve. When the Fed raises rates, CD yields rise; when the Fed cuts, CD yields fall, usually with a lag of 30 to 90 days. Banks compete by offering promotional terms (the 11-month and 13-month CDs above are examples) that price higher than the standard 1-year rate to attract new deposits.
All CDs in this survey are FDIC-insured up to $250,000 per depositor, per bank, per ownership category.
How These CDs Compare to Fixed Annuity Rates
The top CD rates in the table above peak at about 4.20%. For comparable lock-in terms, fixed annuities (called multi-year guaranteed annuities or MYGAs) are currently paying considerably more. Here are today’s top MYGA rates pulling live from our carrier feed.
FDIC insured · Bankrate, May 19 2026
| Term | Top APY | Institution |
|---|---|---|
| 1 year | 4.10% | E*TRADE |
| 2 year | 4.00% | E*TRADE |
| 3 year | 4.00% | E*TRADE |
| 5 year | 4.10% | E*TRADE |
| 10 year | 4.20% | FNBA |
90+ top carriers · Updated daily
No rate data available. View current rates →
Annuities currently pay roughly 1.50% to 2.00% more than comparable CDs
Across every term length we track, multi-year guaranteed annuities currently outpace top-yielding CDs. On a $100,000 deposit over 5 years, that spread compounds to about $9,800 more in interest with an annuity than with a CD at today’s rates.
CD vs Annuity at a Glance
The fastest way to compare. Here’s how the two products stack up across the eight things buyers ask about most.
| Feature | CD | Annuity (MYGA) |
|---|---|---|
| Typical yield (5-year) | 3.30% – 4.10% | 5.40% – 5.85% Higher |
| Term length range | 3 months – 10 years | 2 – 10 years |
| Tax treatment | Interest taxed each year (1099-INT) | Tax-deferred until withdrawal Deferred |
| Insurance / safety net | FDIC up to $250,000 | State guaranty association ($100K – $500K by state) |
| Minimum deposit | $500 – $10,000 typical | $10,000 – $25,000 typical |
| Early withdrawal cost | 3 – 12 months of interest | Surrender schedule + 10% free withdrawal/year |
| Rate lock | Locks for full term | Locks for full term |
| Best fit | Short horizon, need liquidity | 5+ year horizon, growth without yearly tax |
How Much More Does an Annuity Pay?
The headline rate is one thing. What matters is the dollar difference at the end of the term. Here’s what $100,000 grows to in each product at today’s top rates, before taxes.
Compounding does the heavy lifting. A 1.75% rate gap looks small on paper, but over 10 years it changes the balance by nearly a quarter of the original deposit.
Tax Treatment: 1099-INT Every Year vs Tax-Deferred Growth
This is the most overlooked difference between the two products. CD interest is taxed every year as ordinary income, even if you reinvest it. Annuity interest is tax-deferred. You don’t pay a dime until you take money out.
Taxed every year
The bank issues a 1099-INT each January for interest earned the prior year. You owe ordinary-income tax on it, even if you never withdrew a penny.
If you’re in the 24% bracket, a 4.00% CD nets you about 3.04% after federal tax.
Taxed only on withdrawal
Interest compounds inside the contract with no annual tax bill. You pay tax only when you withdraw earnings, and only on the earnings portion.
That means triple compounding: principal, interest, and the money you’d have paid in tax all grow together.
For retirees who don’t need the interest as current income, the deferral is worth more than most people realize. See our full guide to annuity tax deferral for the math.
Safety: FDIC Insurance vs State Guaranty Associations
Both products are protected, just by different systems. CDs are backed by FDIC insurance, which covers up to $250,000 per depositor, per bank. Annuities are backed by state guaranty associations, which cover anywhere from $100,000 to $500,000 of contract value depending on your state of residence.
FDIC: $250K per bank
Federal Deposit Insurance Corporation. Backed by the U.S. government. Coverage is automatic at any FDIC-member bank.
Spread deposits across multiple banks to extend coverage above $250K.
State Guaranty: $100K – $500K
Every state operates a guaranty association funded by the insurance carriers licensed there. If a carrier fails, the association covers contract values up to your state’s limit.
Choose carriers rated A or better by AM Best to make insolvency vanishingly unlikely in the first place.
Liquidity: CD Penalties vs Annuity Surrender Charges
If you need your money before the term is up, both products charge for the privilege. The structures differ.
| Scenario | CD Penalty | Annuity Penalty |
|---|---|---|
| Withdraw 10% of principal in year 1 | 3 – 6 months of interest on the entire withdrawal | $0 (most contracts allow 10% free per year) |
| Cash out the entire balance in year 3 | 3 – 12 months of interest, often eating into principal | 5 – 7% surrender charge on the cashed-out amount |
| Take only the interest each year | Some “no-penalty” CDs allow it | Allowed on most MYGAs without penalty |
| Hold to maturity | $0 | $0 |
The 10% annual free-withdrawal feature on most annuities is the practical liquidity edge. It means you can pull income from the contract every year without giving up the rate.
Term Length and Renewal Risk
Most CDs max out at 5 years; only a few specialty banks offer 7- and 10-year CDs. Annuities routinely go out to 10 years. That extra runway matters when rates are high and you want to lock them in.
If you bought a 5-year CD at 5.50% in 2023, it’s about to mature into a market where 5-year CDs pay closer to 3.85%. A 10-year MYGA bought the same week would still have five years left at the original rate. That’s reinvestment risk, and it’s the single biggest argument for going long when rates are elevated.
See today’s locked-in annuity rates for 7 and 10 year terms
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Minimums, Funding, and Account Types
CDs are designed for everyone. Annuities are designed for serious savers.
$500 – $10,000 minimum
Available at almost any bank or credit union. Open one online in under 15 minutes. Fund with cash from a checking account.
Can be held individually, jointly, or in an IRA.
$10,000 – $25,000 minimum
Sold by licensed insurance producers. Fund with cash, an IRA rollover, a 401(k) rollover, or a 1035 exchange from another annuity.
Can be held individually, jointly, in an IRA, in a Roth, or in a non-qualified account.
When a CD Is the Better Choice
- Your time horizon is under 3 years. The annuity rate advantage doesn’t compound enough to overcome the higher minimums and surrender schedule.
- You need full liquidity. Emergency fund money doesn’t belong in an annuity.
- You’re under 59½ and the money is non-qualified. Annuity withdrawals before 59½ trigger a 10% IRS penalty on top of ordinary tax.
- Your deposit is under $10,000. Most carriers won’t issue a contract below that.
When an Annuity Is the Better Choice
- Your time horizon is 5+ years. The compounding tax-deferred rate advantage builds real money.
- The deposit is taxable money and you don’t want to add to your annual tax bill.
- You’re rolling over an IRA or 401(k). No taxable event, and the IRS penalty timing is the same as the IRA you’re already in.
- You want guaranteed lifetime income later. Annuities can switch from accumulation to income; CDs cannot.
- Rates are elevated and you want to lock 7 to 10 years. Few CDs reach that long; annuities do.
How to Buy: CD vs Annuity Process
Open online or at a branch
- Compare rates on a site like Bankrate or NerdWallet.
- Open the account online with the bank.
- Fund via ACH from checking.
- Receive a confirmation; rate locks immediately.
Quote, application, funding
- Get a quote from a licensed producer (free, no obligation).
- Choose a carrier and term, sign the application.
- Fund via wire, ACH, IRA rollover, or 1035 exchange.
- Receive the contract; 10-day to 30-day free-look period.
Frequently Asked Questions
What is the highest CD rate available right now?
Among the eight banks in this survey, First National Bank of America’s 10-year CD at 4.20% APY is the highest rate. Among shorter terms, Bread Savings and LendingClub both offer 4.15% on 9- and 11-month CDs respectively. Rates are current as of May 19, 2026.
Are annuities safer than CDs?
Both are extremely safe when you stay within their respective coverage limits. CDs are FDIC-insured up to $250,000. Annuities are backed by the issuing carrier’s claims-paying ability and the state guaranty association as a backstop. No annuity holder has lost principal in a state guaranty failure since the system was created.
Can I roll a CD into an annuity tax-free?
If the CD is inside an IRA, yes. You can do a direct trustee-to-trustee transfer into an IRA annuity with no tax impact. If the CD is non-qualified (taxable), you’ll receive the proceeds, owe tax on accrued interest, and can then deposit the cash into an annuity.
Do CD rates and annuity rates move together?
They both follow the broader interest-rate environment, so the trends rhyme. But annuities tend to lag CDs by 30 to 90 days because carriers reprice monthly, not daily. Right now, that lag is working in annuity buyers’ favor: CD rates have started softening, while many annuity rates are still elevated.
What’s a 1035 exchange?
A 1035 exchange is the IRS rule that lets you move money from one annuity to another without triggering tax. There is no equivalent for CDs.
Can I lose money in an annuity?
Not in a fixed annuity or MYGA. The principal and credited interest are guaranteed by the carrier. The only way to come out behind is to surrender early and pay a surrender charge on top of the IRS penalty if you’re under 59½.
Editorial disclosure: Rates shown are gathered from publicly available sources and verified at the publish date. CD rates are surveyed monthly; annuity rates update daily. MyAnnuityStore is licensed in 47 states and offers annuity products only. We do not sell certificates of deposit.
