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Twelve-month CD rates can help to build savings quickly while keeping funds flexible. If you prefer not to tie up funds for several years, 12-month CDs could be the perfect term length for you.
Here are the best 1-year CD rates, factors to include in your decision, and alternatives that can also maximize your savings.
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 5.00% | Term: 1 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.50% | Term: 1 Year | Min. Deposit: $500 | |
| APY: 5.15% | Term: 1 Year | Min. Deposit: $2,500 |
|
APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | ||
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.90% | Term: 1 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 5.00% | Term: 1 Year | Min. Deposit: $5,000 | |
Member FDIC.
| APY: 5.25% | Term: 1 Year | Min. Deposit: $1,500 | |
Member FDIC.
| APY: 4.80% | Term: 1 Year | Min. Deposit: $0 | |
APY: 5.25% | Term: 1 Year | Min. Deposit: $2,500 | ||
Member FDIC.
| APY: 5.15% | Term: 1 Year | Min. Deposit: $1,000 | |
Valley Bank CD
Member FDIC.
| APY: 4.50% | Term: 1 Year | Min. Deposit: $500 |
|
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
Minimum Deposit $2,500
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% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
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. The only common CD term missing is a six-month CD -- in fact, there's no CD term less than one year, but those interested in building longer-term CD ladders will find plenty to like here.
Minimum Deposit $0
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
5.00% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
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 four-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
6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of their CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
Minimum Deposit $2,500
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|
5.00% | 5.15% | 5.00% | 4.50% | 4.30% | 4.00% |
Western Alliance offers some of the highest APYs we've seen across short-term CDs, 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
3 Mo. APY | 5 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY |
---|---|---|---|---|
5.26% | 5.30% | 5.23% | 5.15% | 5.05% |
Most of Nationwide's CD offerings have APYs far below that of other banks -- unless you are flexible enough to choose the term offering the best rate. But at least you can open one for a minimum deposit of just $500.
Minimum Deposit $500
3 Mo. APY | 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 |
---|---|---|---|---|---|---|---|---|
0.20% | 0.20% | 0.20% | 4.75% | 2.85% | 0.20% | 0.20% | 0.20% | 0.20% |
Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.
Minimum Deposit $500
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 | 6 Yr. APY |
---|---|---|---|---|---|---|---|---|
4.80% | 4.90% | 4.90% | 4.60% | 4.20% | 4.15% | 4.05% | 4.00% | 3.90% |
You'll have to lock your money up for at least a year to open a Citizens Bank CD -- and it'll have to be at least $5,000 to satisfy the minimum deposit. That said, the APYs available aren't bad.
Minimum Deposit $5,000
1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.00% | 3.30% | 3.35% | 3.40% | 3.45% |
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
Minimum Deposit $1,500
1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.25% | 4.65% | 4.25% | 4.15% | 4.15% |
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
Minimum Deposit $0
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 |
---|---|---|---|---|---|---|---|
5.15% | 4.90% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.
Minimum Deposit $2,500
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
5.10% | 5.15% | 5.25% | 4.90% | 4.50% | 4.00% | 4.00% |
Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.
Minimum Deposit $1,000
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.75% | 5.15% | 4.90% | 4.30% | 4.20% | 4.05% | 4.00% |
Valley Bank has only a few CD terms available, but the offered APYs are certainly reasonable. If you're hoping to build a small CD ladder, you can even open your accounts with as little as $500 apiece.
Minimum Deposit $500
6 Mo. APY | 1 Yr. APY | 2 Yr. APY |
---|---|---|
4.75% | 4.50% | 4.00% |
Looking to make a return on investment in one year's time? Check out the most important traits of the best 12-month CDs:
Learn More: What is a Certificate of Deposit (CD)?
A 12-month CD is a type of bank deposit account that requires the depositor to leave their money in their account for the entire 12 month maturity term. However, 12-month CDs also have guaranteed interest rates for an entire year, so even if interest rates fall, you'll still get the same rate of return.
Twelve-month CDs are often the point where rates make a big jump from those of shorter CDs. Here are some other factors besides CD rates to consider when comparing 1-year CDs.
The CD accounts we select maximize the earnings on your savings while providing security and predictability. Here’s what we emphasize:
These elements are critical to keeping your savings safe and compounding.
Nobody knows for sure what CD rates will do in 2024, or at any point in the future. Plus, CD yields aren't directly tied to the benchmark interest rates set by the Federal Reserve, or to any other benchmarks.
Having said that, CD yields tend to move in the same direction as the federal funds rate. With the Fed widely expected to start cutting rates later in 2024, it's not particularly likely that CD rates will increase. In fact, the opposite (falling CD rates) are the more likely scenario.
Opening a 12-month CD account can be a great investment. Unfortunately, it also has its drawbacks. Here are some pros and cons of opening a 12-month CD.
Twelve-month CDs are a great way to earn a decent interest rate on savings that you won't need for at least the next year. However, they are not right for everybody. Here are some alternatives that may be a better fit.
These top high-yield savings accounts allow you to earn rates comparable to the best 12-month CD rates. Look for a savings account with a high APY that does not charge a monthly maintenance fee.
The best money market accounts offer the perfect mix of savings and checking account features. With a money market account, you can earn high-yield interest and keep your money accessible. You may even get access to an ATM card or checks.
Most banks have CD terms ranging from a few months to five years. Some banks have options for 10-year rates, too. Usually (but not as of this writing), longer terms mean higher CD rates, but the biggest perk is that you'll lock in your interest rate for a longer period. Only sign up for a longer CD term if you won't need access to your money during the term.
You're more likely to earn a greater return over time by investing in stocks or a retirement fund instead of a 12-month CD. However, you'll need to leave your money untouched for several years before you see a high return. And remember: There's a considerable risk with stocks. Even the best CD rates may not be impressive compared to stock market returns, but they're far more reliable than the stock market.
Twelve-month CDs can be a great investment for short-term savings goals. The rates on these CDs are higher than on many other bank accounts, but they don't require the commitment of longer CD terms. Ultimately, it's up to you to determine if a CD is right for you. Take time to weigh your options before opening a CD.
Offer | APY | Min. Deposit |
---|---|---|
4.70% - 1 Yr. | $2,500 | |
5.00% - 1 Yr. | $0 | |
4.50% - 1 Yr. | $500 | |
5.15% - 1 Yr. | $2,500 | |
5.05% - 1 Yr. | $1 | |
4.75% - 1 Yr. | $500 | |
4.90% - 1 Yr. | $500 | |
5.00% - 1 Yr. | $5,000 | |
5.25% - 1 Yr. | $1,500 | |
4.80% - 1 Yr. | $0 | |
5.25% - 1 Yr. | $2,500 | |
5.15% - 1 Yr. | $1,000 | |
Valley Bank CD
|
4.50% - 1 Yr. | $500 |
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best 1-Year CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
See our full Ratings Methodology here.
Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
A 12-month CD is right for people who want to earn guaranteed high-yield interest and don't need access to their money for the next year.
You might want a 12-month CD because they typically offer better rates than CDs with shorter terms. They also tie up your money for less time than, say, a 5-year CD. If you know you can put away some money for a year and won't need to access it during that time, a 12-month CD could be a good bet.
A 12-month CD is worth it if you don't need access to your money for the next year, because it will usually earn more in interest with a CD than it would earn while sitting in a savings account.
A 1-year CD is a deposit account that has a fixed interest rate (APY) for one year, and requires the depositor to leave the money in the account for the entire term.
Our Banking Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.