# Best 12-Month CD Rates for August 26, 2026 12-month CD rates reach up to 4.35% APY. - **Source:** [The College Investor](https://brifing.si/source/d431d77d-492e-4105-be7c-2525bbb643ab) - **Published:** 2026-08-26 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/42568320-29b3-4727-a887-224c56b017c2 ## CD Rates on the Rise Certificates of deposit (CDs) are seeing rising interest rates, even as major banks lower rates on savings accounts. As of August 26, 2026, the best 12-month CD rates reach up to 4.35% APY (annual percentage yield). According to FDIC data, many banks and credit unions are offering yields well above the national average of 1.71%. Rates have been trending slightly upward in recent weeks, making it a good time to lock in a guaranteed rate. ## Institutions Offering the Highest Rates Quorum Federal Credit Union offers the highest rate at 4.35% APY with a minimum deposit of $100. Credit One Bank offers a jumbo CD at 4.30% APY but requires a $100,000 minimum deposit. E*TRADE offers a 12-month CD at 4.15% APY with a $500 minimum deposit and no upper limit. American First Credit Union, in partnership with Raisin, offers a CD at 4.15% APY with just a $1 minimum deposit. Alliant Credit Union offers a jumbo CD at 4.15% APY with a $75,000 minimum deposit. ## How 12-Month CDs Work A 12-month certificate of deposit offers a fixed interest rate in exchange for keeping your money deposited until maturity. Early withdrawals typically incur a penalty of 90 days' interest. CDs are attractive to savers seeking guaranteed, short-term returns. While high-yield savings accounts offer flexibility, CDs can secure a higher fixed return for a set period. For example, a $25,000 CD at 4.00% APY would earn roughly $1,000 in one year, compared to about $420 at the national average rate of 1.71%. ## What to Know Before Opening a CD Certificates of deposit operate differently from savings accounts. They are ideal for short-term goals, such as saving for tuition, a wedding, or a home down payment within a year. CDs lock in your APY, protecting you from rate cuts. A ladder strategy pairs a 12-month CD with longer-term CDs (24 or 36 months) to capture higher rates while maintaining liquidity. FDIC or NCUA insurance protects up to $250,000 per depositor per institution. ## Minimum Deposit and Withdrawal Terms Some banks require a minimum deposit of $1,000 or more to open a CD. Review withdrawal penalties before committing funds. Many CDs automatically renew at maturity unless you opt out. Confirm whether your rate is locked at the time of application or funding. Ensure the bank allows easy transfers and e-statements for convenient account management. ## How Rates Are Tracked and Verified The College Investor's editorial team reviews CD rates daily from over 30 banks and credit unions nationwide. Every APY is confirmed through official rate disclosures and regulatory filings. Only FDIC- or NCUA-insured institutions available to U.S. consumers are included. Rankings are editorially independent; compensation does not influence placement. While referral fees may be earned, reviews and recommendations are based solely on yield, accessibility, and overall customer experience. ## Are CDs Safe? Yes, CDs are federally insured up to $250,000 per depositor per institution. Early withdrawals are possible but typically incur a penalty of three months' interest. CD earnings are subject to federal income tax and, in some states, state tax. When a CD matures, you usually have a 7- to 10-day grace period to withdraw or renew your funds. With rates near cycle highs, opening a short-term CD can be a smart move before potential rate cuts. ## Is Now a Good Time to Open a CD? Interest rates remain near their cycle highs, making it a good time to lock in a short-term CD. CDs offer a safe option for those seeking guaranteed returns. However, it's important to review details such as early withdrawal penalties and renewal policies. FDIC or NCUA insurance provides protection for your investment. Current rates present attractive opportunities for savers. ## Sources covering this story - https://thecollegeinvestor.com/87338/best-12-month-cd-rates-for-august-26-2026/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._