What's the CD account interest rate forecast for 2026? Here's what experts expect.

In recent years, certificate of deposit (CD) interest rates reached historic highs, due, in large part, to the Federal Reserve pushing up its benchmark rate to try and temper inflation. As the benchmark rate increased, CD account rates also climbed, making this type of interest-bearing account a smart bet for savers. But CD account interest rates have been declining over the past year or so, and in some cases, rates have dropped sharply.

Even with the recent rate drops, though, today's CD account offerings remain relatively strong. Many short- and long-term CD options continue to offer yields above 4%, making them compelling options for savers seeking predictable returns. But as we look ahead to 2026, it's clear that there could be even more shifts to CD rates on the horizon. 

So what could happen with CD rates in the new year — and how should savers plan accordingly? Here's what the experts say.

Find out how to lock in a top CD account rate now.

CD interest rates may fall (and why)

If the Fed resumes its rate-cutting cycle in early 2026, banks will likely adjust their deposit products accordingly. Cuts to the Fed rate could lead to further reductions in CD rates, particularly on longer maturities.

"We expect CD rates will follow the Fed down in 2026," says Derik Farrar, head of everyday banking and borrowing at U.S. Bank. "Best case for CD savers is rates stay at current levels well into 2026 if the next Fed Chair indicates little urgency for immediate cuts."

"The dot plot and futures market expectations of FOMC rate cuts will drive both CD rates and terms," Farrar says.

Some banks have already scaled back promotional offers, for example, with fewer top-tier rates available than a year ago. And while CD rates still beat many standard savings account rates, the best CD interest rates going into 2026 don't measure up to the rates savers were seeing just a few years ago.

For savers looking to secure a high yield before the next move, opening a CD account sooner rather than later could be wise, especially if the Fed signals more cuts ahead.

Learn how much you could earn with the right CD account today.

CD interest rates may rise (and why)

Not all experts agree that a decline in CD rates is inevitable. If inflation remains sticky or economic growth surprises to the upside, the Fed may slow or pause future rate cuts. That could give banks cover to selectively reintroduce more competitive CD account interest rates.

"If lower rates were to spur sufficient loan growth at financial institutions, it could actually push deposit rates higher, even if the Federal Reserve's target rate remains unchanged," says Neil Stanley, CEO and founder of The CorePoint. 

"Lower interest rates can spur loan demand, and banks have the capital capacity to meet that demand, but they will need the funding. If that's the case, funding competition will rise, and deposit rates will likely follow," Stanley says.

Liquidity is another factor. Institutions competing for deposits may boost CD interest rates regardless of central bank moves. As a result, targeted CD rate promotions could return in the new year, particularly for mid-sized and online banks.

CD interest rates may hold steady (and why)

A middle-ground outcome is also possible, with CD account interest rates remaining relatively flat. The Fed could hold its benchmark interest rate steady for much of the year, for example, while banks try to balance retention needs with margin pressure.

"I expect CD rates to be mostly flat to slightly lower in 2026, unless inflation heats up again," said Miron Lulic, CEO of SuperMoney.

In this environment, choosing between a CD account and other products is less about market timing and more about personal preference, especially when comparing fixed vs. variable interest rates.

When to consider high-yield savings instead

For savers who want flexibility or anticipate needing access to funds, high-yield savings accounts may be the better fit. Many savings account interest rates are currently around 4% APY, meaning they're comparable with CD rates overall. 

Compared to CDs, high-yield savings accounts offer easy access to your funds and no early withdrawal penalties,, which most CD accounts charge if you withdraw your money before the end of your term. But they also carry variable rates that could decline further if the Fed rate cuts continue or if the wider rate environment shifts over time. So, savers who are debating between the two should weigh the tradeoffs between rate stability and ease of access. 

The bottom line

If you're unsure of whether to open a CD account in 2026, assess your financial priorities and the market outlook. Given the uncertainty around the CD account forecast, the decision to open a CD depends on your time horizon and risk tolerance. 

"Consumers should focus less on market timing and more on building a deposit mix that balances stability, flexibility, and long-term financial goals," Stanley said.

If Fed rate cuts continue and CD interest rates decline further, locking in a rate now could prove to be a smart move. But in certain cases, the liquidity of a high-yield account or the chance to capture rising yields later could offer more value.