Top 12-Month CD Rates Reach 4.35% in September 2026
Secure higher returns with the best CD rates available today.
1Rising CD Rates
Despite major banks lowering savings account rates, certificates of deposit (CDs) have seen a steady increase. As of September 23, 2026, the best 12-month CD rates reach up to 4.35% APY, significantly higher than the national average of 1.73%. This trend offers savers a chance to lock in higher returns amid fluctuating interest rates.
2Top Offers
Quorum Federal Credit Union and E*TRADE lead with 4.35% APY, requiring minimum deposits of $100 and $500, respectively. Credit One Bank offers 4.30% APY for jumbo CDs with a $100,000 minimum. American First Credit Union and Barclays Bank provide competitive rates at 4.25% APY, with minimal deposit requirements of $1 and $0, respectively.
3How CDs Work
A 12-month CD pays a fixed interest rate for one year, requiring funds to remain deposited until maturity. Early withdrawals incur penalties, typically three months of interest. CDs appeal to savers seeking guaranteed, short-term returns, especially when high-yield savings accounts offer less predictability.
4Rate Protection
CDs lock in APY, shielding savers from potential rate cuts. For example, a $25,000 CD at 4.00% APY earns roughly $1,000 annually, compared to $420 at the national average rate. This makes CDs ideal for short-term goals like tuition, weddings, or home down payments.
5Ladder Strategy
Pairing a 12-month CD with longer-term CDs (24- or 36-month) can maximize returns while maintaining liquidity. This strategy allows savers to capture higher rates over time while ensuring access to funds periodically.
6Safety and Insurance
CDs are federally insured up to $250,000 per depositor, per institution, by the FDIC or NCUA. This guarantees the safety of funds, making CDs a low-risk investment option for conservative savers.
7Key Considerations
Before opening a CD, understand the terms: minimum deposit requirements, withdrawal penalties, renewal policies, and rate guarantees. Ensure the bank offers online access for easy transfers and e-statements.
8Why Now?
With rates near cycle highs, locking in a short-term CD can be advantageous before potential rate cuts. Savers can secure predictable returns while protecting against future declines in interest rates.
Original article: The College Investor — Top 12-Month CD Rates Reach 4.35% in September 2026