Comparison of CD Terms and Rates in September

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September 1, 2026
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A certificate of deposit (CD) account provides several benefits for savers amid the current economic conditions. Among the advantages is a fixed interest rate that surpasses many alternatives. However, CD rates aren’t uniform across accounts. You might find differences between rates at your local branch and those offered by online institutions, where lower operational costs often result in better rates for account holders.

The choice of bank is a key factor in determining the rate you secure. Another crucial element is the account term. CD terms range from as short as three months to as long as ten years. Historically, long-term CDs, those maturing in 18 months or longer, offered higher returns. Recent volatility has shifted this, with higher rates sometimes seen on short-term CDs. Understanding which CD terms give the best rates is essential, especially as the Federal Reserve considers an interest rate hike soon.

Current CD Term Options

This September, average CD rates hover around 4%, but distinctions exist between rates like 3.90% and 4.35%. Here are the terms with the highest rates:

18-month CD at 4.35%
2-year CD at 4.35%
3-year CD at 4.50%
5-year CD at 4.40%

And the lower-rate options:

3-month CD at 3.95%
6-month CD at 4.20%
9-month CD at 4.10%
1-year CD at 4.30%

While higher rates are appealing, ensure you can maintain your deposit through the maturity date. Early withdrawals incur penalties that could negate the interest earned, so only invest what can remain untouched.

Alternative Savings Accounts

Savers seeking more flexibility can consider high-yield savings and money market accounts, which offer competitive rates. While lower than top CD rates, these accounts have variable rates that fluctuate with the market. They allow unrestricted access to funds, presenting viable options for those preferring liquidity in a high-interest setting.

Conclusion

September’s best CD rates align with long-term CDs, offering substantial returns. However, evaluate short-term options as well as high-yield savings and money market accounts to determine the best fit for your savings strategy. These alternative accounts provide flexibility that may be crucial given today’s economic conditions.