Certificates of deposit (CDs) stay some of the dependable short-term financial savings instruments, particularly for these looking for assured returns as charges fall. As of February 25, 2026, the greatest 12-month CD charges attain as much as 4.05% APY (annual proportion yield), with many banks and credit score unions nonetheless providing yields far above the nationwide common of 1.55%, in response to the FDIC.
Nonetheless, during the last week we noticed a number of main banks drop their 12-month CD fee.
Now is perhaps the most effective time to lock in a assured fee. For those who’re seeking to earn a predictable return over the following 12 months, these are the most effective CD charges accessible at the moment.
💰 Immediately’s Greatest 12-Month CD Charges At a Look
Listed below are the most effective financial institution and credit score union financial savings accounts charges at the moment:
|
Financial institution or Credit score Union |
Prime APY |
Minimal Deposit |
|---|---|---|
|
4.05% |
$100,000 |
|
|
3.85% |
$1,000 |
|
|
3.80% |
$2,500 |
|
|
3.80% |
$1,000 |
|
|
3.80% |
$1,000 |
1. Credit score One Financial institution – Credit score One Financial institution is providing a jumbo CD at 4.05% APY, however it does require a $100,000 minimal deposit to open.
2. Financial institution of Utah – Financial institution of Utah is at the moment providing a 12-month CD at 3.85% APY with only a $1,000 minimal deposit.
3. Stay Oak Financial institution – Stay Oak Financial institution is at the moment providing a 12-month CD at 3.80% APY with a $2,500 minimal to open. Learn extra about Stay Oak Financial institution right here.
4. Navy Federal Credit score Union – Navy Federal CU is at the moment providing a daily 12-month share certificates with only a $1,000 minimal at 3.75% APY. You probably have $100,000, you may get the jumbo share certificates for 3.80% APY. Learn our full Navy Federal Credit score Union evaluation right here.
5. Alliant Credit score Union – Alliant Credit score Union provides quick time period and long run CDs with aggressive APYs. Proper now you may get 3.75% APY on a 12-month CD choice! And you may even earn as much as 3.80% APY on a Jumbo CD. Learn our full Alliant Credit score Union Assessment.
Yow will discover a full record of the most effective 12-month CDs right here >>
How 12-Month CDs Work
A 12-month certificates of deposit pays a set rate of interest for one 12 months in change for retaining your cash on deposit till maturity. For those who withdraw early, the financial institution costs a penalty – sometimes 90 days of curiosity.
CDs enchantment to savers preferring assured, short-term returns. Whereas high-yield financial savings accounts provide flexibility, CDs can safe a better fastened return for a set interval, which could be useful if charges are anticipated to say no.
For instance, a $25,000 CD at 4.00% APY would earn roughly $1,000 in a single 12 months, in contrast with about $387 primarily based on at the moment’s nationwide common 12-month CD fee.
What To Know Earlier than Opening A CD
Certificates of deposit function in a different way than financial savings accounts. Be sure to perceive what you are getting:
- Quick-Time period Targets: Perfect for saving towards tuition, a marriage, or a house down fee inside a 12 months.
- Price Safety: A CD locks your APY, so that you’re insulated from fee cuts.
- Ladder Technique: Pair a 12-month CD with longer phrases (24- or 36-month) to seize greater charges whereas sustaining liquidity.
- Security:
FDIC or NCUA insurance coverage protects as much as $250,000 per depositor, per establishment.
Earlier than opening an account, be sure to perceive all of the phrases:
- Minimal Deposit: Some banks require $1,000 or extra to open.
- Withdrawal Phrases: Assessment penalties earlier than committing funds.
- Renewal Coverage: Many CDs robotically renew at maturity until you choose out.
- Price Ensures: Verify whether or not your fee is locked on the time of software or funding.
- On-line Entry: Make sure the financial institution permits simple transfers and e-statements.
How We Monitor And Confirm Charges
At The Faculty Investor, our editorial workforce evaluations CD charges each day from greater than 30 banks and credit score unions nationwide. We verify each APY immediately from official fee disclosures and regulatory filings.
Solely FDIC- or NCUA-insured establishments accessible to U.S. shoppers are included.
Our rankings are editorially impartial – compensation doesn’t affect placement. Whereas we might earn a referral payment while you open an account by way of some hyperlinks, our evaluations and suggestions are primarily based solely on yield, accessibility, and total buyer expertise.
FAQs
Are 12-month CDs protected?
Sure. CDs are federally insured as much as $250,000 per depositor, per establishment.
Can I withdraw my cash early?
Sure, however you’ll forfeit some curiosity, sometimes three months’ price.
Are CD earnings taxable?
Sure. Curiosity earned is topic to federal earnings tax, and in some states, state tax.
What occurs when a CD matures?
You’ll normally have a 7- to 10-day grace interval to withdraw or renew your funds.
Is now an excellent time to open a CD?
Charges stay close to their cycle highs, so locking in a short-term CD could make sense earlier than potential cuts.
The submit Greatest 12-Month CD Charges for February 25, 2026: As much as 4.05% appeared first on The Faculty Investor.
