Best 1-year CD rates for February 2026: Lock in up to 4% APY for the next 12 months

Core Insights - The article emphasizes the benefits of 1-year certificates of deposit (CDs) as a low-risk investment option for savers seeking better yields than traditional savings accounts while avoiding long-term commitments [1] Group 1: Best 1-Year CDs - Ally Bank offers a competitive 3.75% APY with a $0 minimum deposit, making it accessible for new savers [3] - Synchrony Bank provides a 3.8% APY with no minimum deposit, but has a 90-day interest penalty for early withdrawals [4] - Marcus by Goldman Sachs features a 4% APY, requiring a minimum deposit of $500, with a 90-day interest penalty for early withdrawals [5] - America First Credit Union has a 3.95% APY with a $500 minimum deposit and a 60-day interest penalty for early withdrawals [11] - Capital One offers a 3.9% APY with no minimum deposit, but imposes a penalty of three to six months' interest for early withdrawals [12] - American Express National Bank provides a 3.25% APY with no minimum deposit and a 270-day interest penalty for early withdrawals [13] - Bask Bank has a 3.75% APY with a $1,000 minimum deposit and a 90-day interest penalty for early withdrawals [14] - TAB Bank offers a 3.9% APY with a $1,000 minimum deposit and a 90-day interest penalty for early withdrawals [15] - Live Oak Bank features a 4% APY with a $2,500 minimum deposit and a 90-day interest penalty for early withdrawals [21] - Quontic Bank rounds out the list with a 3% APY and a $500 minimum deposit, with a penalty equal to the interest for the full term for early withdrawals [22] Group 2: FAQs and Methodology - The highest 1-year CD rate currently available is 4% APY, offered by both Marcus by Goldman Sachs and Live Oak Bank, with minimum deposits of $500 and $2,500 respectively [23] - A $10,000 CD at a 4% APY would yield approximately $408 in interest over one year, while at the national average rate of 1.61%, it would yield about $162 [24] - The evaluation methodology for the best 1-year CDs involved over 300 data points, focusing on metrics such as APY, minimum opening deposit, and compounding frequency [29][30]