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finance banking cd
Best CD rates in February 2026
CD or Certificate of Deposit is a deposit account, that has a specific, fixed term and usually, a fixed interest rate higher than a savings account.
What is a Certificate of Deposit (CD)?
A Certificate of Deposit (CD) is a “time deposit” account. You agree to lock your money away for a specific period (like 1 year or 5 years), and in exchange, the bank guarantees you a fixed interest rate.
Unlike a savings account where rates can drop at any moment, a CD rate is locked in. If you buy a 5-Year CD at 4.00%, you get 4.00% for five years, even if market rates crash to zero.
Why use one?
- Rate Locking: If you think interest rates will fall soon, buying a long-term CD locks in today’s high rates for years.
- Guaranteed Returns: There is no stock market risk. You know exactly how much money you will have on the maturity date.
- Discipline: Penalties for early withdrawal force you to save. You can’t just spend the money on an impulse buy.
When should you use a CD?
- Defined Timeline: You are buying a house in exactly 3 years. A 3-Year CD matches your timeline perfectly.
- CD Laddering: You split your money into different terms (1yr, 2yr, 3yr) so you have cash freeing up every year while capturing higher long-term rates.
- Avoiding Volatility: You want better returns than a savings account but zero risk of losing principal.
How to understand the table below
- APY (Annual Percentage Yield): The interest you earn in a year.
- Term: How long you must keep the money in the account.
- Early Withdrawal Penalty: The fee you pay if you need the money before the term ends (usually a few months of interest).
- “No-Penalty” CDs: Special CDs that allow you to withdraw early for free, though they often have slightly lower rates.
Top CD Rates (February 2026)
Ordered by APY potential and term variety:
| APY | Institution | Term | Min to Open | Withdrawal Penalty |
|---|---|---|---|---|
| 4.50% | Connexus Credit Union → | 12 Month (Promo) | $5,000 | 180 Days Interest |
| 4.25% | Farmers Insurance FCU → | 12 Month | $1,000 | 90 Days Interest |
| 4.15% | United Fidelity Bank → | 5 Year | $1,000 | 365 Days Interest |
| 4.10% | E*TRADE → | 1 Year | $1,000 | See Disclosure |
| 4.05% | Marcus by Goldman Sachs → | 12 Month | $500 | 270 Days Interest |
| 3.95% | Marcus (No-Penalty) → | 13 Month | $500 | None |
| 3.95% | Western Alliance Bank → | 1 Year | $1 | 90 Days Interest |
| 3.75% | Bread Savings → | 1 Year | $1,500 | 180 Days Interest |
| 3.65% | Forbright Bank → | 12 Month | $1,000 | Varies |
| 3.30% | Ally Bank (No Penalty) → | 11 Month | $0 | None |
CD vs. Savings Account
| Feature | Certificate of Deposit (CD) | Savings Account (HYSA) |
|---|---|---|
| Interest Rate | Fixed (Locked in for term) | Variable (Can drop anytime) |
| Withdrawals | Restricted (Penalty applies) | Flexible (With limits) |
| Best For | Knowing exactly when you need cash | Emergency funds & unexpected expenses |
| Opening/Minimum | Often higher ($500 - $1,000+) | Often Low ($0 - $100) |
Disclaimer: This is not a financial advice and Maxint is not affiliated with any financial instiution, product or service.