Top Certificate of Deposit Rates Reach 4% APY as of February 15, 2026

Consumers seeking a secure place to earn interest on savings can lock in annual percentage yields (APYs) up to 4% on certificates of deposit (CDs) available today, February 15, 2026. The most competitive offer comes from Marcus by Goldman Sachs, which is paying 4% APY on a 12-month term. Although CD yields vary across financial institutions, the current environment favors shorter maturities, reversing a long-standing trend in which longer terms generally provided higher returns.

Shorter Terms Now Lead the Rate Table

Historically, banks compensated savers for committing funds for longer periods, meaning five-year CDs typically outpaced one-year products. Today’s inverted structure reflects broader economic conditions, including uncertainties about future interest-rate movements. As of this morning, no mainstream bank or credit union is advertising an APY above the 4% mark on terms longer than one year, while several one-year offers cluster near that ceiling.

The difference in return can be substantial, even over a single year. Consider a deposit of $1,000 in a CD that yields 1.61% APY, compounded monthly. At maturity, the balance would rise to $1,016.22—a gain of $16.22. Placing the same amount in a one-year CD earning 4% APY would grow the balance to $1,040.74, producing $40.74 in interest. Larger deposits magnify the effect: a $10,000 placement in the 4% CD would be worth $10,407.42 at the end of 12 months, adding $407.42 in earnings.

Key Factors When Comparing CDs

Rate shoppers often focus first on the APY, understandable because the figure captures the impact of both the stated interest rate and the frequency of compounding. However, several additional features can influence the suitability of a CD:

• Bump-up CD: Allows a one-time request to raise the APY if the issuing bank increases rates during the term. This feature provides limited protection against rising market rates, though initial APYs are usually modestly lower than those of standard CDs.
• No-penalty CD: Also called a liquid CD, this product permits early withdrawal of principal and interest without incurring the customary early-withdrawal penalty. In exchange for the added flexibility, savers typically accept a slightly reduced APY.
• Jumbo CD: Requires a high minimum deposit—frequently $100,000 or more. In the past, jumbo CDs delivered noticeably higher yields, but the current spread between jumbo and traditional CDs has narrowed considerably.
• Brokered CD: Purchased through a brokerage rather than directly from a bank. Brokered CDs may offer attractive rates or unique maturities, yet they can introduce additional considerations, such as a lack of early-withdrawal options or ineligibility for FDIC insurance when issued by non-insured entities.

How Compounding Influences Earnings

Most CDs compound interest daily or monthly, with the frequency stated in the account’s disclosures. More frequent compounding generates modestly higher returns because interest earned is added to the principal more often. Although the difference is small on brief terms or low balances, it becomes meaningful as both variables rise. Shoppers comparing two CDs with identical nominal rates should review the compounding schedule to gauge the true APY.

Penalties and Early-Withdrawal Considerations

Traditional CDs carry an early-withdrawal penalty, often expressed as a set number of months of interest. Savers planning to tap funds before maturity may find no-penalty or shorter-term CDs preferable to avoid forfeiting earnings. Those requiring flexibility should weigh potential penalties against the certainty of the APY and ascertain whether the prospective return adequately compensates for the lock-in period.

Deposit Insurance and Safety

CDs issued by banks insured by the Federal Deposit Insurance Corporation and by credit unions covered by the National Credit Union Administration protect balances up to the standard insurance limits—generally $250,000 per depositor, per insured institution, per ownership category. Customers depositing amounts above that threshold can spread funds across multiple institutions or ownership categories to maintain coverage.

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Steps to Secure the Best Rate Today

1. Verify FDIC or NCUA insurance: Confirm that the issuing institution is federally insured.

2. Compare APYs by term: Focus on one-year offers, which currently outpace many longer terms.

3. Review compounding frequency: Daily compounding typically yields slightly higher returns than monthly schedules.

4. Evaluate withdrawal rules: Understand penalties or, for no-penalty CDs, allowable withdrawal windows.

5. Match term to financial needs: Select a maturity that aligns with the timeline for anticipated expenses or reinvestment.

Outlook for Rates

Market expectations regarding future Federal Reserve policy contribute to the unusual shape of today’s CD rate curve. A shift in monetary policy could move yields up or down, influencing whether locking in now proves advantageous. Because CDs maintain a fixed rate once opened, a depositor securing 4% APY today will continue earning that rate even if prevailing yields decline. Conversely, if rates climb, funds remain tied to the original APY until maturity unless the CD offers a bump-up feature or permits penalty-free withdrawal.

Given the current ceiling of 4% APY on one-year CDs from institutions such as Marcus by Goldman Sachs, savers looking for a guaranteed return may consider acting promptly. While rates can adjust rapidly in response to economic developments, funds placed in an insured CD before a change hold their contracted rate for the full term, delivering predictable, low-risk growth.

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