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Best 1-Year CD Rates of 2025

Updated
Brooklyn Sprunger
Author: Brooklyn Sprunger
Brooklyn Sprunger
Brooklyn Sprunger

Brooklyn leads the content team behind product reviews and ratings at Motley Fool Money, ensuring readers get well-researched, expert-backed insights to make smarter financial decisions. With nearly seven years working full-time in financial content -- four of them at The Motley Fool -- she has developed a deep passion for personal finance, from investing strategies to everyday money management. Her financial goals include buying a house and planning as many trips as her budget allows. In her free time, you’ll likely find her listening to a pop culture podcast or telling anyone who will listen to get a high-yield savings account.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. APY = Annual Percentage Yield.

If you’re looking to earn a solid return without locking up your money for too long, a 1-year CD could be the sweet spot. It’s long enough to secure a higher APY than most savings accounts, but still short enough to keep your cash accessible within a year.

Right now, some of the best 1-year CD rates are hovering around 4.00%. That’s strong -- but possibly not for long. The Fed is widely expected to start cutting interest rates later in 2025, which could bring these CD offers down with it. So if you’ve got money you don’t need for the next 12 months, now’s a good time to lock in.

  • Our team of experts assessed 100+ banking institutions
  • We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
  • Our bank ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

Compare the top 1-year CDs

Rates as of May 29, 2025
Western Alliance Bank CD

Western Alliance Bank CD

APY:
3.80%
Term:
1 Year
Min. Deposit:
$1
Open Account for

On Raisin's Secure Website.

Discover® Bank CD

Discover® Bank CD

Member FDIC.
APY:
4.00%
Term:
1 Year
Min. Deposit:
$0
Open Account for

On Discover Bank's Secure Website.

Barclays Online CD

Barclays Online CD

Member FDIC.
APY:
4.00%
Term:
1 Year
Min. Deposit:
$0
Open Account for Barclays Online CD

On Barclays' Secure Website.

Quontic CD

Quontic CD

Member FDIC.
APY:
3.25%
Term:
1 Year
Min. Deposit:
$500
Open Account for

On Quontic's Secure Website.

Unlike other banking products we evaluate, certificates of deposit (CDs) do not receive a star rating from us. This approach is due to the frequent updates in interest rates and terms associated with CDs. Instead, we highlight CDs on our best-of list pages based on their annual percentage yield (APY) and the fees associated with early withdrawals. Our top CD selections typically offer competitive APYs without complex qualification tiers, low early withdrawal penalties, reliable strong brand reliability, and user-friendly features.

Motley Fool Money focuses exclusively on standard CDs and does not review IRA CDs, bump-up CDs, callable CDs, or other specialized CD accounts.

Our aim is to maintain a balanced list featuring top-scoring products from reputable brands offering competitive APYs and standout features. Learn more about how Motley Fool Money rates bank accounts.

Unlike other banking products we evaluate, certificates of deposit (CDs) do not receive a star rating from us. This approach is due to the frequent updates in interest rates and terms associated with CDs. Instead, we highlight CDs on our best-of list pages based on their annual percentage yield (APY) and the fees associated with early withdrawals. Our top CD selections typically offer competitive APYs without complex qualification tiers, low early withdrawal penalties, reliable strong brand reliability, and user-friendly features.

Motley Fool Money focuses exclusively on standard CDs and does not review IRA CDs, bump-up CDs, callable CDs, or other specialized CD accounts.

Our aim is to maintain a balanced list featuring top-scoring products from reputable brands offering competitive APYs and standout features. Learn more about how Motley Fool Money rates bank accounts.

Why I like these 1-year CDs

Western Alliance Bank CD

Rates as of May 29, 2025

APY = Annual Percentage Yield

Offer image for Western Alliance Bank CD
Western Alliance Bank CD
Bottom Line

Western Alliance Bank offers some of the highest APYs we've seen across short-term CDs through the Raisin platform. Its CDs have low $1 minimums, and relatively low withdrawal penalties without any additional fees. But you will need to look elsewhere for terms longer than one year.

MINIMUM DEPOSIT $1
Open Account for Western Alliance Bank CD

On Raisin's Secure Website.

3 Mo. APY 5 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY
4.30% 4.10% 4.00% 3.90% 3.80%

Why I like it:
Western Alliance Bank CD keeps things simple -- just $1 to get started, and the APY is competitive for a 12-month term. You’ll open this account through Raisin, which makes it easy to shop multiple CDs in one place.

Read more about Western Alliance Bank CDs.

Discover® Bank CD

Rates as of May 29, 2025

APY = Annual Percentage Yield

Offer image for Discover® Bank CD
Discover® Bank CD
Bottom Line

Discover offers competitive CD rates, particularly when compared to traditional brick-and-mortar banks. It provides a range of unique term lengths, with CDs available for as short as three months and as long as 10 years. This flexibility makes Discover an excellent choice for individuals looking to secure a rate for either a short-term or an extended period.

MINIMUM DEPOSIT $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

3 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 30 Mo. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY 7 Yr. APY 10 Yr. APY
2.00% 3.70% 4.00% 4.00% 3.80% 3.80% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%

Why I like it:
Discover® Bank CD combines a top-tier APY with no minimum deposit requirement ($0), making it an easy win for just about anyone. Plus, Discover’s known for solid customer service and a seamless online experience.

Read more about Discover® Bank CDs.

Barclays Online CD

Rates as of May 29, 2025

APY = Annual Percentage Yield

Offer image for Barclays Online CD
Barclays Online CD
Bottom Line

Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. Those interested in building longer-term CD ladders will find plenty to like here.

MINIMUM DEPOSIT $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
3.80% 3.80% 4.00% 3.25% 3.00% 3.00% 3.00% 3.25%

Why I like it:
Barclays Online CD matches the highest APYs available and requires no minimum deposit ($0). If you want a high yield with a name you recognize and no hoops to jump through, this one checks all the boxes.

Read more about Barclays Online CDs

Quontic CD

Rates as of May 29, 2025

APY = Annual Percentage Yield

Offer image for Quontic CD
Quontic CD
Bottom Line

Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a 4-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.

MINIMUM DEPOSIT $500
Open Account for Quontic CD

On Quontic's Secure Website.

6 Mo. APY 1 Yr. APY 2 Yr. APY 3 Yr. APY 5 Yr. APY
3.75% 3.25% 3.35% 3.25% 3.00%

Why I like it:
Quontic CD offers an above-average APY for the term, and with a minimum deposit of $500, it’s a straightforward choice if you want a solid rate from a digital-first bank.

Read more about Quontic CDs

How to choose a 1-year CD

Picking the right 1-year CD isn’t just about chasing the highest APY (though that’s important!). Here are a few quick tips to help you lock in the best fit for your money and goals:

Look for low minimum deposits

If you’re not ready to put away a big chunk of cash, find a CD with a low or no minimum deposit. That way, you can start earning interest without maxing out your budget.

Consider early withdrawal penalties

Most CDs charge a penalty if you cash out early. Check what the penalty is and decide if you’re comfortable locking your money away for the full year.

Think about the bank’s reputation and ease of access

Online banks often offer better rates, but make sure the bank is FDIC insured and has easy online account management. Good customer service matters if you have questions or run into issues.

Plan your timeline

Make sure you really won’t need that money for 12 months. Unlike a savings account, you can’t just withdraw it without penalty. If your timeline’s uncertain, a high-yield savings account might be a better choice.

Is it a good time to get a 1-year CD?

Right now, 1-year CD rates are still attractive compared to savings accounts and many other safe options. But the market’s shifting:

  • Experts expect the Fed to start cutting interest rates later this year, which usually means CD rates will drop.
  • Locking in a CD now means you can secure a solid rate before rates start falling.
  • If you know you won’t need your money for a year, this could be a smart move.

If you need flexibility or might need the cash sooner, you might want to hold off or opt for a high-yield savings account instead. See the best high-yield savings rates today.

FAQs

  • Most CDs have early withdrawal penalties, which usually mean losing some or all of the interest earned, and sometimes even part of your principal. Always check the terms before you commit.

  • Typically, interest is compounded daily or monthly and paid at maturity, but some banks offer monthly payouts. Make sure to read the fine print.

  • No. CDs require a fixed deposit at opening. If you want to add money over time, look into high-yield savings accounts or CDs that allow add-ons (rare).

  • If you want the highest guaranteed rate and won’t need the money for 12 months, a CD is a great choice. But if you want flexibility and easier access to your funds, a high-yield savings account might be better.