As of February 3, 2026, Daniels-Sheridan Federal Credit Union offers the highest CD rate at 5.11% Annual Percentage Yield (APY) for a 12-month certificate of deposit, requiring a minimum deposit of $500. This rate stands out in a market where consumers seek reliable, low-risk returns on their savings.
Why CD Rates Matter Now
CDs (Certificates of Deposit) provide a fixed return over a set period, making them attractive when interest rates are volatile. In early 2026, the Federal Reserve is signaling potential rate cuts, meaning locking in a high rate now could be advantageous. Unlike standard savings accounts, CDs guarantee a specific APY for the term, ensuring predictable growth.
Current Top CD Rates
Here’s a snapshot of competitive CD rates as of today:
- Daniels-Sheridan Federal Credit Union (12-month): 5.11% APY (minimum $500)
- GTE Financial (1-year): 4.28% APY (minimum $100,000)
- United Fidelity Bank (5-year): 4.15% APY
The national average for a 5-year CD is only 1.56%, highlighting how significantly these top rates outperform standard options.
How Much Can You Earn?
A $10,000 deposit in a 12-month CD at 5.11% APY yields $511 in interest. This illustrates why CDs are favored for short- to medium-term savings goals.
| Deposit Amount | Earnings After 1 Year | Earnings After 5 Years |
|---|---|---|
| $5,000 | $255.50 | $1,371.63 |
| $10,000 | $511.00 | $2,743.26 |
| $25,000 | $1,277.50 | $6,858.15 |
The Future of CD Rates
The Federal Reserve has initiated rate cuts, suggesting that CD rates will likely decline. Locking in a higher rate now can protect your earnings from future reductions. Shorter-term CDs may see the most immediate impact, while longer-term rates may adjust more gradually.
Strategies for Maximizing CD Returns
- CD Laddering: Distribute funds across CDs with staggered maturity dates to benefit from higher long-term rates while maintaining liquidity.
- No-Penalty CDs: Choose these for flexibility, allowing early withdrawals without penalties if rates rise.
- Shop Around: Compare rates from banks and credit unions to secure the most competitive APY.
Key CD Terms to Know
- Add-on CD: Allows additional deposits during the term.
- Brokered CD: Offered through brokerage firms, potentially with better rates.
- Bump-up CD: Permits a one-time rate increase during the term.
Conclusion
In early 2026, locking in a high CD rate is a sensible strategy given the Federal Reserve’s policy direction. With rates poised to fall, securing an APY of 5.11% with Daniels-Sheridan Federal Credit Union represents a strong opportunity for savers. CDs remain a safe, reliable option for growing savings, and understanding the available terms can optimize returns.
