Best CD Rates 2026: Compare Top Banks Offering 4.75%-5.00% APY
Compare the highest CD rates available in February 2026, learn CD ladder strategies, and find FDIC-insured options to maximize your savings.
Updated February 18, 2026
14 min read
Quick Answer
Quick Answer: The best CD rates in February 2026 range from 4.25% to 5.00% APY depending on the term length. A $10,000 deposit in a 1-year CD at 4.75% APY earns $475 in interest, compared to just $50 in a traditional savings account at 0.50% APY.
Key Comparison: Online banks and credit unions typically offer rates 0.50-1.00% higher than national bank averages.
Certificate of deposit (CD) rates in 2026 remain attractive compared to historical averages, offering savers a reliable way to earn guaranteed returns. After the Federal Reserve's rate adjustments throughout 2024 and 2025, CD rates have stabilized at levels that make them a compelling option for conservative investors. Keep in mind that inflation erodes purchasing power -- use our inflation calculator to check whether your CD's real return stays positive. Understanding the difference between APR and APY is also important when comparing CD offers.
Average CD Rates by Term (February 2026)
CD Term
National Average APY
Top Rate Range
$10,000 Earnings
3-Month
4.00%
4.25% - 4.50%
$100 - $113
6-Month
4.25%
4.50% - 4.75%
$213 - $238
1-Year
4.50%
4.75% - 5.00%
$475 - $500
2-Year
4.25%
4.50% - 4.75%
$919 - $972
3-Year
4.00%
4.25% - 4.50%
$1,255 - $1,412
5-Year
3.75%
4.00% - 4.25%
$2,040 - $2,314
Rate Alert:
CD rates change frequently based on Federal Reserve policy and market conditions. The rates shown reflect February 2026 averages. Always verify current rates with individual institutions before opening a CD.
Best CD Rates by Bank in 2026
Finding the best CD rates requires comparing offers across online banks, credit unions, and traditional banks. Here are the top CD rate categories based on February 2026 data:
Top Online Banks for CD Rates
Online banks consistently offer the best CD rates due to lower overhead costs. These FDIC-insured institutions typically offer rates 0.50-1.00% higher than traditional banks:
Bank Type
1-Year CD APY
5-Year CD APY
Minimum Deposit
FDIC Insured
Top Online Banks
4.75% - 5.00%
4.00% - 4.25%
$0 - $1,000
Yes
Credit Unions
4.50% - 4.90%
4.00% - 4.20%
$500 - $1,000
NCUA Insured
Regional Banks
4.25% - 4.60%
3.75% - 4.00%
$500 - $2,500
Yes
National Banks
3.50% - 4.25%
3.00% - 3.75%
$1,000 - $10,000
Yes
Best CD Rates 2026 Tip:
The highest 1-year CD rates in February 2026 are around 5.00% APY from top online banks. On a $10,000 deposit, that earns $500 in one year compared to just $40 at a typical bank savings account (0.40% APY).
CD Ladder Strategy: The Best of Both Worlds
A CD ladder is one of the smartest strategies for maximizing CD returns while maintaining liquidity. Instead of putting all your money into a single CD, you spread it across multiple CDs with staggered maturity dates.
How to Build a 5-Year CD Ladder
Here's how to create a classic 5-year CD ladder with $25,000:
Year
Initial Investment
CD Term
Example APY
Maturity Value
Year 1
$5,000
1-Year CD
4.75%
$5,238
Year 2
$5,000
2-Year CD
4.50%
$5,460
Year 3
$5,000
3-Year CD
4.25%
$5,664
Year 4
$5,000
4-Year CD
4.10%
$5,870
Year 5
$5,000
5-Year CD
4.00%
$6,083
"A CD ladder provides the best of both worlds: the higher yields of long-term CDs with the flexibility of regular access to your money."
- Financial Planning Principles
Benefits of CD Laddering
Regular liquidity: A portion of your money becomes available at regular intervals
Higher average yield: Longer-term CDs typically earn more than short-term. Use our compound interest calculator to see the difference compounding makes over multiple years
Interest rate flexibility: If rates rise, you can reinvest maturing CDs at higher rates
Reduced risk: Avoids locking all funds at one rate that may become unfavorable
CDs vs. Other Savings Options
CDs are not the only option for safe, interest-earning savings. Before deciding, consider how much you need in liquid reserves. Our emergency fund calculator can help you determine how much to keep accessible. You may also want to compare today's best savings account rates for funds you need on shorter notice. Here is how CDs compare to alternatives:
Option
Typical APY (2026)
Liquidity
Best For
CDs
4.00% - 5.00%
Low (penalties apply)
Known timeline, rate certainty
High-Yield Savings
4.25% - 4.75%
High (instant access)
Emergency fund, uncertain timeline
Money Market
4.00% - 4.50%
High (check-writing)
Frequent access with good rates
Treasury Bills
4.50% - 5.00%
Medium (can sell early)
State tax-free income
I-Bonds
Varies (inflation-indexed)
Low (1-year minimum)
Inflation protection
Frequently Asked Questions
What is a good CD rate in 2026?
A good CD rate in 2026 is 4.50% APY or higher for 1-year terms and 4.00% or higher for 5-year terms. Top online banks and credit unions typically offer the best rates, often 0.50-1.00% higher than national bank averages.
Should I lock in a CD rate now or wait?
Whether to lock in a CD rate depends on your interest rate outlook. If rates are expected to fall, locking in now preserves your yield. If rates may rise, shorter terms or a CD ladder strategy provides flexibility. Currently in 2026, rates remain attractive compared to historical averages.
What is a CD ladder and how does it work?
A CD ladder is a strategy where you divide your savings across multiple CDs with staggered maturity dates. For example, invest equal amounts in 1-year, 2-year, 3-year, 4-year, and 5-year CDs. As each matures, reinvest in a new 5-year CD. This provides both liquidity and higher long-term yields.
Are online bank CDs safe?
Yes, online bank CDs are safe as long as the bank is FDIC-insured. The FDIC insures deposits up to $250,000 per depositor, per bank. Online banks often offer higher CD rates because they have lower overhead costs than traditional banks.
What happens if I withdraw from a CD early?
Early withdrawal from a CD typically incurs a penalty, usually expressed as a number of months' interest. For example, a 6-month penalty on a 1-year CD means you'd lose half your earnings. Some banks offer no-penalty CDs with slightly lower rates that allow early withdrawal without fees.
Calculate Your CD Earnings
Use our free CD calculator to see exactly how much your CDs will earn at different rates and terms.
Disclaimer: This content is for educational and informational purposes only and does not constitute financial, tax, or investment advice. CD rates change frequently based on market conditions and Federal Reserve policy. Always verify current rates with individual financial institutions before opening a CD. Consult with a qualified financial advisor for personalized guidance.