Will a CD account still be worth opening in 2026? Experts weigh in

Interest rates have cooled over the past 14 months, with the Federal Reserve appearing to mirror its late-2024 pattern of rate cuts. The central bank lowered its benchmark rate by 0.25% in both September and October, and expert consensus points to another cut at the Fed's upcoming December meeting. After two years of aggressive rate hikes to curb inflation, the Fed's focus over the past year appears to be on supporting growth and making it more affordable to borrow.

While lower rates are welcome news for borrowers, they're less appealing for savers, including those with money parked in certificates of deposit (CDs) accounts. Currently, the most competitive rates fall in the low 4% range for short-term CDs and the high 3% range for longer ones. 

Those rates represent a sizable drop from August 2024, when you could find top CDs offering rates of up to 6%. Still, today's CD rates easily exceed the current 3% rate of inflation, allowing savers to earn a modest return on their deposits. But given the Fed's current rate-cutting trend and other economic factors, it's reasonable to question if CD accounts will still be worth opening in 2026. We spoke with a few experts to determine the value of opening an account in the new year.

See how much interest you could be earning with a top CD account here.

Will a CD account still be worth opening in 2026?

There's no uniform answer to this question. Instead, the experts we spoke with argued that it depends on multiple factors. Here's how to determine when it may (and may not be) worth pursuing in 2026:

Why a CD account can still be worth opening in 2026

A CD account could still be a beneficial savings tool in 2026 because of the strong likelihood the Federal Reserve will continue to cut rates, says Derik Farrar, head of everyday banking and borrowing at U.S. Bank. "The administration has consistently stated a preference for lower interest rates. The same administration is going to name a new Fed chair soon."

As Farrar notes, the current economic data indicates the current downward trend in interest rates is likely to continue, which means CDs could make a lot of sense for savers. "Even in a 6- or 7-month CD, you might be locking in a higher yield than in a liquid account that might be priced higher today but would likely be priced down with the FOMC."

Christopher Stroup, founder and president of Silicon Beach Financial, agrees that CD accounts are still worth opening in 2026 even after several Fed rate cuts, but that savers should do so through a more strategic lens. "CD yields have drifted lower, yet they still appeal to savers who value predictability. Locking in a short- to mid-term CD can make sense if you expect rates to keep falling and want guaranteed returns that outpace most high-yield savings accounts." This strategy would allow you to lock in higher rates now, while still giving you flexibility to reinvest later if the economy changes and higher CD rates become available.

Explore your short-term CD account options online now.

Why a CD account may not be worth opening in 2026

Shana Hennigan, chief business officer at savings marketplace Raisin, points to declining interest rates and a lack of liquidity as the main reasons a CD may not be worth opening in the new year. "If you anticipate needing access to your funds in the short term, a traditional CD account may be limited because early withdrawals often incur penalties. Additionally, if inflation rises faster than the rate on your CD, the real value of your savings could deteriorate," she says.

Still, she notes that CD providers will not stand idly by. "We expect banks and credit unions to remain competitive for deposits; however, that likely means competitive within the context of a lower overall rate environment," she says. "That being said, we expect depository institutions to continue offering attractive CD products, including promotional products from institutions looking to grow their deposit base."

Stroup echoes the sentiment that falling rates could sour savers from opening a CD in the coming months. "With inflation easing and rates expected to stabilize or fall further, today's lower CD yields may lose appeal," he says. "Locking in for too long could mean missing out if better opportunities arise in Treasury bills, money market funds or equities recovering from recent volatility."

What about high-yield savings accounts?

If you're still unsure whether to lock your money into a CD in 2026, you might explore other options, including high-yield savings accounts. These instruments offer competitive rates compared to CDs, but your account isn't locked. That means you can access your funds anytime without incurring an early withdrawal penalty.

You can still find top banks and credit unions offering high-yield savings account rates around 4%. Keep in mind, rates on these accounts are variable, so they'll likely decrease if the Fed continues to lower interest rates.

Learn more about your high-yield savings account options here.

The bottom line

Whether or not opening a CD account is worth it in 2026 depends on your financial situation and goals. Consider whether you can leave your money in a CD for the full term to lock in today's higher rate. Remember, if you need to pull out your funds before maturity it could cost you a penalty. If you do decide to open a CD account, make sure to compare APYs from several financial institutions to make sure you're getting the best CD rate available. It's also a good idea to compare early withdrawal penalties just in case you need to access your funds early.