The Best Short-Term CD for Your Cash in 2026
This strategy can help you earn thousands in months.
Are you retiring soon and have savings goals you need to meet? This is where a certificate of deposit can be helpful. It provides guaranteed returns without risk.
In turn, you won't have to worry about market fluctuations or Federal Reserve policy impacting your earnings. Short-term CDs, in particular, can be a wise savings vehicle as you approach retirement because they can help you reach your goals without tying up your money for years.
It is why I'm going to highlight a specific short-term CD to consider for savers with larger cash reserves (think $50,000 or more). I'll also offer some things to consider before diving into this approach, and how much you can earn.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Maximize your growth in months, not years
When examining CD options, I recommend jumbo CDs to those with larger cash reserves. Why? Because they work similarly to regular CDs, in that you tie up your money for a few months to a year, but you also receive the benefits of a regular CD. Chief among them is fixed interest rates.
It means if the Fed cuts rates sometime this year (which is possible, according to Kiplinger's interest rate outlook), it won't impact your earnings if you sign up for one soon. There are differences between the two CD types as well.
Jumbo CDs require larger deposits, usually around $50,000, but some banks want a minimum of $100,000. Terms range from six months to a year, allowing you to maximize your returns without tying up your money for an uncomfortable period.
If you want to lock one in soon while rates are as high as 4.35% APY, use this Bankrate tool to find the right match for you:
Here's a few reasons why I like them:
- Earn APYs as high as 4.35%
- Guaranteed returns
- Many banks offer FDIC insurance, protecting your deposits up to $250,000
- Quick terms of six months to a year ensure you don't lose cash access for long
The tradeoff: Weighing risk and reward
CDs are not what you would call the most flexible savings vehicle. If you choose a jumbo CD, your money must remain on deposit for the term, or else you face stiff early termination fees that could cost you hundreds of dollars. And that's no good.
The other thing to keep in mind is that you'll limit your earnings with this approach. Some jumbo CDs offer the highest returns of any savings account, but investing can traditionally offer more if you don't mind the risk.
That's why these CDs work best if you're approaching retirement and target specific goals where you already have the cash, and want to earmark it for expenses down the road. This can include:
- Home improvements
- Down payment on a second home
- Splurge purchases, like a classic car or boat
- Reallocating some of your money to less risky investments as you retire
- Starting a business
Two more things to consider before opening one: Your earnings are subject to tax as ordinary income. Considering you could earn a significant amount in a short time, make sure to budget for taxes so you're not surprised when you file.
The other thing is that many banks auto-renew CDs. Therefore, set a reminder on your phone a week or two before the CD matures. This will give you time to investigate options before you make your next move. Of course, if jumbo CD rates are still high, and you don't need the money right away, you can let it ride and see your earnings really add up.
How many can I really earn with a jumbo CD?
Now, we get to the fun part. Here are a few of the top-earning jumbo CDs I found, and how much you can earn with the minimum required deposit for each:
Account | Min Deposit | APY | Term | Total earnings |
|---|---|---|---|---|
$100,000 | 4.35% | 1 year | $4,350 | |
$50,000 | 4.05% | 9 months | $1,511 | |
$50,000 | 4.00% | 1 year | $2,000 |
As you can see, you'll earn up to several thousand dollars in a year effortlessly with this approach. Best of all, you'll have quick access to your cash, allowing you to pivot to other investments as the market changes or cash out to fulfill your short-term savings goals.
What if I don't have enough for a jumbo CD?
If this is the case, you can choose a short-term CD that coincides with your savings goal and deposit capacity.
To demonstrate, if you're saving for a trip you're taking in a year, the best one-year CD rates can help you reach them. Keep in mind that CDs have terms ranging from three months to five years, allowing you to match the right account to your goals. If you don't have a specific time goal, I've found the highest CD rates out there are typically on six-month CDs at the moment.
Moreover, deposit requirements for CDs vary by banks. Usually, you'll need at least a $500 to $1,000 minimum to open many CD accounts. However, there are also some, like Vibrant Credit Union, that offer a six-month CD for only a $5 minimium deposit. Therefore, even if you don't have a huge deposit available, you can still qualify for a CD and earn many of the same benefits.
Don't leave thousands on the table
Jumbo CDs are a smart solution for savers with significant cash reserves. They allow you to allocate a portion of your investments to a less risky vehicle, helping you earn thousands of dollars per year. This makes them a great choice for those approaching retirement who need a short-term savings option.
Just remember, these CDs require you to keep your money in for the whole term. Withdrawing early comes with steep penalties. However, if you want to avoid market risk and volatility, signing up for one today ensures you earn the highest rates while they remain available.
Related content
-
Will Real Estate and Private Equity Shine Again in 2026?Real estate, private equity and general partner stakes could benefit from future interest rate cuts. What are the risks and rewards of investing in each?
-
Thinking of Switching Phone Carriers? Do These 8 Things FirstSwitching carriers is easier than ever, but overlooking the fine print could cost you. Here’s what to check before you make the move.
-
Samsung Galaxy S26 Ultra: What to Know Before You UpgradeThe Galaxy S26 Ultra brings new features and strong launch deals, but whether it’s worth upgrading depends on what you already own.
-
Samsung Galaxy S26 Ultra: What to Know Before You Upgrade
The Galaxy S26 Ultra brings new features and strong launch deals, but whether it’s worth upgrading depends on what you already own.
-
What Is an Assumable Mortgage and Could It Save You Thousands?With mortgage rates still elevated, taking over a seller’s existing home loan could lower monthly payments — if the numbers work.
-
Have You Fallen Into the High-Earning Trap? This Is How to EscapeHigh income is a gift, but it can pull you into higher spending, undisciplined investing and overreliance on future earnings. These actionable steps will help you escape the trap.
-
I'm a Financial Adviser: These 3 Questions Can Help You Navigate a Noisy Year With Financial ClarityThe key is to resist focusing only on the markets. Instead, when making financial decisions, think about your values and what matters the most to you.
-
Where Olympians Store Their Medals is a Great Lesson For Your Valuables and CashWhat you can learn about protecting your cash and values from where Olympians store their medals.
-
An Executive's 'Idiotic' Idea: Skip Safety Class and Commit a Federal CrimeSeveral medical professionals reached out to say that one of their bosses suggested committing a crime to fulfill OSHA requirements. What's an employee to do?
-
How You Can Use the Financial Resource Built Into Your Home to Help With Your Long-Term GoalsHomeowners are increasingly using their home equity, through products like HELOCs and home equity loans, as a financial resource for managing debt, funding renovations and more.
-
How to Find Free Money for Graduate School as Federal Loans Tighten in 2026Starting July 1, federal borrowing will be capped for new graduate students, making scholarships and other forms of "free money" vital. Here's what to know.
