Two-Thirds of Banks Lack Digital CD Opening, Forfeiting Key Deposits

SEATTLE, WA – February 19, 2026 – In an era where digital convenience dictates consumer choice, a vast majority of American financial institutions are failing to meet a fundamental expectation, creating a costly gap in their service offerings. A new, comprehensive survey reveals that two-thirds of banks and credit unions do not allow customers to open a Certificate of Deposit (CD) account online, effectively shutting the door on a significant source of stable, long-term deposits.

The study, released today by the digital marketplace CD Valet, manually reviewed the websites of 4,833 financial institutions nationwide. The findings paint a stark picture of an industry lagging behind consumer behavior. According to the data, 66.5% of institutions lack a digital pathway for opening CDs. Perhaps more surprisingly, 45.5% of the banks and credit unions surveyed offer no digital account opening capabilities whatsoever, forcing potential new customers into a branch for any type of new account.

A Widening Digital Chasm

The gap highlighted by the survey is more than a minor inconvenience; it represents a fundamental disconnect with the modern saver. While banks have slowly adopted digital tools for basic checking and savings accounts—with 21% offering this limited capability—the more complex, and often more lucrative, CD products have been left in the analog era. Only 33% of institutions provide a fully digital onboarding experience across checking, savings, and CD products.

"CDs represent a powerful opportunity for financial institutions to attract high‑intent, affluent savers. Yet most banks and credit unions fall short in providing online account opening for these products, leaving significant customer growth and deposits on the table," said Mary Grace Roske, Head of Marketing and Communications at CD Valet, in a statement accompanying the release.

This digital inertia runs counter to overwhelming consumer trends. Recent industry analysis from firms like J.D. Power shows that over 65% of all new bank accounts are now opened through digital channels, a figure that climbs even higher for Millennial and Gen Z customers. Today's consumers expect onboarding processes to be completed in a single, intuitive session, often in less than seven minutes. The failure to provide this seamless experience for CDs means many institutions are invisible to a growing cohort of savers who prioritize ease of access over institutional loyalty.

The Community Bank Conundrum

The challenge is particularly acute for the nation's thousands of community banks and credit unions. Historically reliant on branch traffic and local relationships, these smaller institutions now find themselves at a significant competitive disadvantage. They are caught between large national banks with massive technology budgets and nimble, online-only banks that were built from the ground up for digital-first service.

Without a robust digital "front door," community institutions struggle to attract deposits beyond their immediate geographic footprint. This not only limits their growth potential but also makes them vulnerable during periods of economic uncertainty when liquidity becomes paramount. Many smaller banks lack the in-house expertise or perceive the cost of digital transformation as prohibitive, creating a "digital transformation gap" that widens with each passing year.

However, the regulatory environment is increasingly supportive of solutions. The National Credit Union Administration (NCUA), for example, has recently updated rules to make it easier for credit unions to partner with financial technology companies, emphasizing a principles-based approach to risk management rather than prescriptive restrictions. This shift encourages the adoption of third-party tools that can help smaller institutions bridge the technology gap without having to build complex systems from scratch.

The Race for Deposits in a Shifting Rate Environment

The failure to offer digital CD access is particularly ill-timed given the current economic climate. After a series of interest rate hikes, the Federal Reserve shifted course in late 2025, enacting several rate cuts. As of early 2026, the benchmark federal funds rate sits in a range of 3.50%-3.75%, and forecasts predict further gradual declines throughout the year.

This falling-rate environment makes CDs a particularly attractive vehicle for savers. By locking in a fixed rate today, consumers can secure a guaranteed return that is likely to outperform rates available in the coming months and years. Top-tier CD rates, while down from their 2024 peaks, still offer appealing yields, with some institutions offering as high as 4.94% APY for specific terms. This creates a window of opportunity for savers to act, and consequently, a critical moment for banks to capture those funds.

The institutions poised to win this race for deposits are those that understand the modern formula for success. As Roske noted, it requires a three-pronged strategy: "Institutions that do offer convenient, intuitive digital account opening – paired with competitive rates and strong digital visibility – can readily compete head‑to‑head with the big players dominating the market."

Navigating the New Deposit Marketplace

For institutions lacking the budget or infrastructure to build proprietary digital solutions, a new ecosystem of third-party platforms is emerging to level the playing field. Digital marketplaces like CD Valet and its competitor Raisin act as a bridge, connecting savers across the country with federally insured banks and credit unions of all sizes.

These platforms allow consumers to easily compare thousands of verified CD rates and, in many cases, navigate the account opening process. For a community bank in a rural area that offers a competitive rate, these marketplaces provide unprecedented national visibility, allowing them to attract deposits from affluent savers in major metropolitan areas without spending a dollar on traditional advertising there.

CD Valet positions itself as an unbiased, "saver-first" marketplace that does not accept promotional fees for preferential listings, aiming to provide transparent and comprehensive rate information. This approach empowers consumers to find the best real returns while enabling smaller financial institutions to compete purely on the strength of their product offerings. This new model fundamentally alters traditional deposit-gathering strategies, transforming it from a local, relationship-based activity into a national, digitally-driven competition where convenience and value are paramount.

The message from the market is clear: deposit growth is no longer a given. For financial institutions of all sizes, but especially community players, embracing a complete digital strategy for all deposit products is not just an opportunity for growth—it is becoming a prerequisite for survival.