Looking at the country’s largest banks by FDIC data, CD APYs reach as high as 4.00% as of May 15, 2026. You’ll find terms stretching from four months to 14 months.
Not everyone wants to open an account at an online bank they’ve barely heard of. If you prefer sticking with a major institution, these CD offerings deserve your attention.
Rates accurate as of May 15, 2026.
What’s the benefit of opening a CD with a big bank?
There’s comfort in banking with names like Chase and Wells Fargo—names that have been around for decades. That familiarity alone draws plenty of people in. But beyond the brand, a few practical advantages come with opening a CD at a large bank:
- Keep all your banking in one place: Many people already hold checking accounts, savings accounts, auto loans, or mortgages at a big bank. Sticking with that bank for your CD means managing everything from a single institution.
- Often more CD options available: Larger banks frequently (though not universally) stock a deeper roster of CD terms and types than smaller competitors.
- Get relationship rate bumps: If you’re already a customer, some banks will boost your CD APY as a loyalty perk. Whether that rate actually beats what a leaner digital bank offers depends on the situation; online banks keep expenses low and pass the savings on. And it’s notable that some online-oriented banks like American Express are recognizable names and also often lead the pack on CD rates.
What is a CD?
A certificate of deposit (CD) works a bit like a high-yield savings account, but with tighter rules and, in many cases, a higher interest rate to compensate.
You deposit a lump sum and promise not to touch it for a predetermined term. If you break that promise, you’ll owe early withdrawal penalties. On the other hand, your interest rate is locked in from day one and won’t budge regardless of market conditions.
Once the term wraps up and your CD matures, the money is yours to do with as you please: Withdraw it, move it to a different account, or open a new CD. Banks typically auto-renew CDs at maturity, but most allow a grace period so you can weigh your options first.
How to choose the best CD type for you
The classic fixed-rate CD is just one of several options. Banks have developed a range of specialty CDs aimed at different financial situations. Here are the most common:
- No-penalty: Access your funds before the term expires without a fee. The downside is that APYs tend to be lower.
- Bump-up: If rates on your CD product go up mid-term, you can request the higher APY.
- Jumbo: A designation for CDs with large minimum deposits, which may come with slightly better rates.
- IRA: Lets you use a CD to build retirement savings. You can fund it with money already in an IRA or make new contributions—just keep in mind the annual IRA contribution limit ($7,000 under age 50; $8,000 for those 50 and older).
- Business: A conservative way to earn interest on business reserves. Like IRA CDs, business CDs are available in multiple formats.
How to choose the best CD term for you
The term you select could easily be the most important part of opening a CD. It controls how long your funds are committed—and how long you’ll wait before accessing them penalty-free.
A longer term locks in your APY, which is great when rates are high. You’ll be protected if the market dips. But if rates rise during your term, you’re left on the sidelines—your money is stuck earning the original rate unless you want to pay an early withdrawal penalty.
Ask yourself two things:
- How long are you willing to go without touching this money?
- What APY does this term pay? Rates aren’t uniform across term lengths.
For a way to get liquidity and competitive rates at the same time, look into CD laddering.
What is CD laddering?
CD laddering is a strategy that helps you invest in CDs over a longer time without surrendering access to all your cash. The idea is straightforward: Open several CDs with different term lengths so that they mature at staggered intervals.
To illustrate, suppose you have $5,000 available. You might split it as follows:
- $1,250 into a 6-month CD
- $1,250 into a 12-month CD
- $1,250 into a 18-month CD
- $1,250 into a 24-month CD
Each time a CD matures—every six months in this case—you get $1,250 plus interest back. From there, you can spend it, save it, or funnel it into another 24-month CD to keep the ladder rolling.
The takeaway
Large banks deliver the broadest array of CD terms and account types, along with the dependability of an established name. Their rates, however, aren’t always the strongest—so shopping around is wise. Head over to our post on the best certificates of deposit for a look at the top current deals.
Frequently asked questions
Are CDs at large banks safer than CDs at smaller banks?
CDs at large banks are not really safer than CDs at smaller banks. As long as the bank is insured by the FDIC, your money is generally as safe at a small bank. If it’s a credit union, check that they’re insured by the NCUA.
How often do big-name banks change their CD rates?
Big-name banks change their CD rates regularly. You may find that some CD terms change every couple weeks—exhibiting the value of opening a long-term CD. If you see a rate that you like, best to jump on it.
Can I lose money with a CD from a big bank?
You can’t lose money with a CD from a big bank, or any bank really, in the same way that you could with a riskier investment like the stock market. That said, you might effectively “lose” money if the interest you earn is lower than the inflation rate. You won’t be able to access and reinvest your money into something more profitable until your account terms (or unless you pay fees).
Should I keep all my CDs at the same large bank or spread them around?
It’s OK to keep all your money at the same large bank as long as your deposits are covered by the FDIC. This covers up to $250,000 per account holder per ownership category. If you’ve got more than that, it’s worth spreading the money around to other banks to ensure the FDIC covers it all.
Are CD rates at big banks always lower than at smaller online banks?
CD rates at big banks are not always lower than at smaller online banks. It’s true that online banks tend to offer more consistently impressive returns than big banks due to their lack of overhead and lower operational costs. But big banks often issue a handful of APYs that rival the best rates on the market.
