Top 12-Month CD Rates February 4, 2026: Up to 4.10% APY

Today’s Leading 12-Month CD Rates at a Glance

Certificates of deposit, commonly known as CDs, continue to serve as one of the most dependable options for short-term saving, particularly for individuals who prioritize secure and predictable returns amid declining interest rates. On February 4, 2026, the highest yields for 12-month CDs stand at up to 4.10% APY (annual percentage yield). Numerous banks and credit unions are providing rates that significantly exceed the national average of 1.61%, as reported by FDIC data.

In the past week, several prominent banks have reduced their offerings for 12-month CD rates. This development suggests that the present moment could be optimal for securing a fixed rate. For those aiming to achieve a reliable return over the coming year, the following represent the most competitive CD rates currently accessible.

Below is a summary of the top-performing banks and credit unions for 12-month CDs today:

• Credit One Bank: 4.10% APY, Minimum Deposit $100,000
• Seattle Bank: 4.00% APY, Minimum Deposit $2,500
• Live Oak Bank: 3.80% APY, Minimum Deposit $2,500
• Navy Federal Credit Union: 3.80% APY, Minimum Deposit $1,000
• Alliant Credit Union: 3.80% APY, Minimum Deposit $1,000

Detailed Overview of Top Providers

1. Credit One Bank – This institution provides a jumbo CD option yielding 4.10% APY. However, it comes with a substantial minimum deposit requirement of $100,000 to get started. This makes it suitable for savers with larger sums who want to maximize their earnings on high-balance deposits.

2. Seattle Bank – Seattle Bank stands out with its 12-month CD offering 4.00% APY and a relatively accessible minimum deposit of just $1,000. This combination of competitive yield and lower entry barrier appeals to a broader range of savers looking for strong returns without committing massive amounts upfront.

3. Live Oak Bank – Currently, Live Oak Bank delivers a solid 3.80% APY on its 12-month CD, requiring a $2,500 minimum deposit to open the account. This option is particularly attractive for those seeking online banking convenience paired with above-average rates in a stable investment vehicle.

4. Navy Federal Credit Union – Navy Federal Credit Union offers a standard 12-month share certificate at 3.75% APY with a $1,000 minimum. For depositors with $100,000 or more, the jumbo version bumps up to 3.80% APY. Membership eligibility applies, typically tied to military affiliation, making it a go-to for qualifying individuals and families.

5. Alliant Credit Union – Alliant provides a variety of short- and long-term CD products with strong APYs. At present, their 12-month CD yields 3.75% APY, while jumbo CDs can reach up to 3.80% APY. The low $1,000 minimum deposit enhances accessibility for everyday savers aiming to grow their funds securely.

Understanding How 12-Month CDs Function

A 12-month certificate of deposit guarantees a fixed interest rate over the course of one year, provided the funds remain deposited until the maturity date. Early withdrawals typically incur a penalty, often equivalent to 90 days’ worth of interest, to discourage premature access.

These products attract savers who value certainty and short-term commitments. Unlike high-yield savings accounts, which provide liquidity but variable rates, CDs lock in a superior fixed yield for the term. This strategy proves beneficial in environments where interest rates are forecasted to drop further.

Consider this practical illustration: Depositing $25,000 into a CD at 4.00% APY generates approximately $1,000 in interest after one year. In contrast, the same amount in a CD at the current national average rate of around 1.61% would yield only about $420. This disparity underscores the value of selecting top-tier rates.

Key Considerations Before Opening a 12-Month CD

CDs differ markedly from traditional savings accounts in structure and terms. It’s essential to fully grasp the implications before proceeding:

• Alignment with Short-Term Objectives: Perfect for goals like funding education, planning a wedding, or accumulating a down payment on a home within the next 12 months.
• Protection Against Rate Fluctuations: By fixing the APY at account opening, CDs shield your earnings from subsequent market-driven reductions.
• CD Laddering Approach: Combine a 12-month CD with longer maturities such as 24- or 36-month terms to balance higher potential yields with periodic access to portions of your savings.
• Unwavering Security: Backed by FDIC or NCUA insurance, your deposits are safeguarded up to $250,000 per depositor per institution, offering peace of mind.

Prior to committing, review these critical account details thoroughly:

• Minimum Deposit Requirements: Expectations range from $1,000 or higher depending on the provider.
• Early Withdrawal Policies: Familiarize yourself with penalty structures to avoid surprises.
• Automatic Renewal Procedures: Most CDs renew at maturity unless you actively intervene during the grace period.
• Rate Lock Confirmation: Verify if the promotional rate applies at application or upon funding.
• Digital Banking Features: Confirm support for seamless transfers, online statements, and account management tools.

Our Methodology for Tracking and Validating CD Rates

The editorial team at The College Investor meticulously monitors CD rates on a daily basis across more than 30 banks and credit unions throughout the United States. We validate every listed APY by cross-referencing official rate sheets, disclosures, and regulatory submissions to ensure accuracy and timeliness.

Selections are limited to FDIC- or NCUA-insured entities that serve the general U.S. public. Our evaluations maintain strict editorial independence; no form of compensation sways our rankings. Although referral incentives may apply for certain accounts, our assessments prioritize raw yield performance, ease of access, and comprehensive customer satisfaction metrics above all else.

Frequently Asked Questions About 12-Month CDs

Are 12-month CDs a safe investment choice?

Absolutely. Federal insurance through FDIC or NCUA covers up to $250,000 per depositor per institution, minimizing risk to your principal.

Is early withdrawal possible from a CD?

It is permitted, but expect to forfeit a portion of interest earned, commonly three months’ equivalent, as a penalty.

Do CD interest earnings incur taxes?

Yes, the interest is taxable at the federal level, and potentially at the state level depending on your location.

What occurs upon CD maturity?

Institutions typically provide a grace period of 7 to 10 days, during which you can withdraw funds, renew, or adjust your investment.

Does the current market favor opening a new CD?

With rates holding steady near peak levels, committing to a short-term CD now positions you well ahead of any impending reductions by the Federal Reserve.