What's a good CD interest rate this August?

The interest rate environment Americans find themselves in this August is unlikely to be the one many had anticipated in January. 

The Federal Reserve cut interest rates three times in the final four months of 2025 and, while a fourth cut wasn’t imminent, it was largely expected to be issued later in 2026. But that’s not what’s happened so far. A surge in inflation and oil prices in response to the war with Iran has altered that trajectory. The Fed has now kept interest rates paused in its first five meetings of the year and, this August, the potential for a Fed rate hike for when the bank meets again in September sits close to a 60% likelihood, according to the CME Group’s FedWatch tool.

Against this backdrop, savers and borrowers will need to reconsider what they consider a “good” rate to be. Mortgage rates, for example, are markedly different from what they were a few months earlier. Interest rates on select savings accounts, for example, have also changed, providing an opportunity for savers to earn more on their money than they may have been able to in the winter or in the closing months of 2025.

This is an especially important consideration for prospective certificate of deposit (CD) account holders, as rates here are fixed. Locking in a high rate now, then, could make sense as they’re readily available across a wide range of account terms. To better understand the value of taking action now, then, it helps to know what a good CD interest rate is considered to actually be this August. That’s what we’ll outline below.

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What’s a good CD interest rate this August?

CD interest rates will vary based on the lender and the term, so savers will want to shop around to ensure that they find the most competitive account for their needs and goals. If you can find a CD interest rate at or above those listed below, you should consider it to be a good one now and worthy of locking in before it changes again:

• 3-month CD: 3.95%
• 6-month CD: 4.15%
• 9-month CD: 4.10%
• 1-year CD: 4.40%
• 18-month CD: 4.35%
• 2-year CD: 4.30%
• 3-year CD: 4.50%

While these are some of the best CD rate options available this August, savers should be careful not to rush into an account opening solely based on these rates, either. An early withdrawal fee will be issued on any account in which the funds are withdrawn prematurely, negating most, if not all, of the interest earned to that point. Be confident in your ability to maintain the account through the maturity date, as a high rate won’t be worth much if you can’t earn it for the full term.

Learn more about the top CD rates and accounts available here.

What interest rate does a traditional savings account offer this August?

Don’t want to lock your money away into a CD and lose the accessibility you’re accustomed to with a traditional savings account? That’s understandable but right now, with an average rate of just 0.38%, according to the last update from the FDIC, keeping your money here versus a CD essentially means that you’re losing interest that you can otherwise be earning by making a switch. 

An alternative for those who need to maintain access to their funds, then, is a high-yield savings account. This account comes with a rate competitive with the top CDs while still allowing savers to make withdrawals and deposits as needed. Just note that high-yield savings accounts have variable rates that will change based on market conditions, making long-term interest-earning projections difficult to complete with precision. 

The bottom line

A good CD account interest rate this August ranges from 3.95% to 4.50%, depending on the term in question. But with high-yield savings accounts offering similar rates – albeit in a variable form – with none of the accessibility restrictions, savers should also consider those accounts before making a shift. Just be sure to keep any money in the traditional account limited, if you need to keep it there at all, as both alternatives offer ways to earn exponentially more interest, starting as soon as this August.