Where to find top CD yields in the second half as Fed policy remains murky
As the Federal Reserve keeps rates on hold amid murky policy signals, savers can still find attractive CD yields above 5% by shopping around and locking in longer terms.
Savers hunting for top certificate of deposit (CD) yields still have opportunities in the second half of 2026, even as the Federal Reserve's policy path remains unclear. With the Fed holding its benchmark rate steady, banks continue to offer competitive rates to attract deposits, though the landscape is shifting.
Online banks and credit unions are leading the pack with CD yields above 5% for terms ranging from six months to two years, according to recent data. The average one-year CD yield is around 4.5%, but top institutions are offering 5.2% or more. For traders monitoring interest rate differentials, the gap between short-term CD rates and longer-term Treasury yields reflects ongoing uncertainty about the Fed's next move. As the yield curve remains inverted, locking in longer-term CDs now could protect against future rate cuts. NowPrice's real-time rates quotes show the latest CD and Treasury yields for comparison.
Looking ahead, the key driver will be the Fed's reaction to inflation and employment data. If the economy softens, rate cuts could emerge in 2027, making current high CD yields more attractive. Savers should consider laddering strategies—staggering maturities—to balance yield and liquidity. Watch for the July Fed meeting and upcoming CPI releases for clues on the rate trajectory.