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Best 12-Month CD Rates of October 2022

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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 12-month CD rates, factors to include in your decision, and alternatives that can also maximize your savings.

Ratings Methodology
Rates as of Oct. 5, 2022
Best 12- Month Certificates of Deposits (CDs) of October 2022 picks.
Bank & CD Offer APY Min. Deposit Next Steps
APY -1 Yr.:  3.00% Min. Deposit:   $2,500
APY -1 Yr.:  2.50% Min. Deposit:   $500
APY -1 Yr.:  3.05% Min. Deposit:   $0
APY -1 Yr.:  3.00% Min. Deposit:   $500
APY -1 Yr.:  3.25% Min. Deposit:   $0
APY -1 Yr.:  3.00% Min. Deposit:   $5,000
APY -1 Yr.:  3.00% Min. Deposit:   $0
APY -1 Yr.:  3.00% Min. Deposit:   $1,500
APY -1 Yr.:  3.15% Min. Deposit:   $0
APY -1 Yr.:  2.35% Min. Deposit:   $1,000
APY -1 Yr.:  2.85% Min. Deposit:   $2,500
APY -1 Yr.:  2.25% Min. Deposit:   $500
APY -5 Yr.:  3.15% Min. Deposit:   $0
APY -3 Yr.:  3.10% Min. Deposit:   $0
APY -1.5 Yr.:  3.00% Min. Deposit:   $0
APY -6 Mo.:  1.75% Min. Deposit:   $0
APY -4 Yr.:  1.20% Min. Deposit:   $0
APY -3 Yr.:  1.15% Min. Deposit:   $0
APY -2 Yr.:  3.00% Min. Deposit:   $0
APY -1.5 Yr.:  1.00% Min. Deposit:   $0
APY -5 Yr.:  3.50% Min. Deposit:   $0
APY -4 Yr.:  3.25% Min. Deposit:   $0
APY -3 Yr.:  3.20% Min. Deposit:   $0
APY -2 Yr.:  3.15% Min. Deposit:   $0
APY -1.5 Yr.:  3.10% Min. Deposit:   $0
APY -6 Mo.:  0.10% Min. Deposit:   $0
APY -5 Yr.:  3.65% Min. Deposit:   $1,500
APY -4 Yr.:  3.60% Min. Deposit:   $1,500
APY -3 Yr.:  3.55% Min. Deposit:   $1,500
APY -2 Yr.:  3.50% Min. Deposit:   $1,500
APY -5 Yr.:  3.50% Min. Deposit:   $0
APY -4 Yr.:  3.40% Min. Deposit:   $0
APY -1.5 Yr.:  3.25% Min. Deposit:   $0
APY -5 Yr.:  0.50% Min. Deposit:   $1,000
APY -4 Yr.:  0.50% Min. Deposit:   $1,000
APY -3 Yr.:  0.40% Min. Deposit:   $1,000
APY -2 Yr.:  0.40% Min. Deposit:   $1,000
APY -1.5 Yr.:  0.30% Min. Deposit:   $1,000
APY -1 Yr.:  0.30% Min. Deposit:   $1,000
APY -6 Mo.:  0.30% Min. Deposit:   $1,000
APY -5 Yr.:  3.30% Min. Deposit:   $5,000
APY -4 Yr.:  3.20% Min. Deposit:   $5,000
APY -3 Yr.:  3.15% Min. Deposit:   $5,000
APY -2 Yr.:  3.10% Min. Deposit:   $5,000
APY -5 Yr.:  3.30% Min. Deposit:   $2,500
APY -4 Yr.:  3.20% Min. Deposit:   $2,500
APY -3 Yr.:  3.15% Min. Deposit:   $2,500
APY -2 Yr.:  3.10% Min. Deposit:   $2,500
APY -1.5 Yr.:  3.00% Min. Deposit:   $2,500
APY -6 Mo.:  1.00% Min. Deposit:   $2,500
APY -5 Yr.:  3.30% Min. Deposit:   $500
APY -4 Yr.:  3.20% Min. Deposit:   $500
APY -3 Yr.:  3.15% Min. Deposit:   $500
APY -2 Yr.:  3.10% Min. Deposit:   $500
APY -1.5 Yr.:  3.00% Min. Deposit:   $500
APY -6 Mo.:  2.00% Min. Deposit:   $500
APY -5 Yr.:  3.25% Min. Deposit:   $500
APY -4 Yr.:  3.10% Min. Deposit:   $500
APY -3 Yr.:  3.05% Min. Deposit:   $500
APY -2 Yr.:  2.85% Min. Deposit:   $500
APY -1.5 Yr.:  2.50% Min. Deposit:   $500
APY -1 Yr.:  2.30% Min. Deposit:   $500
APY -6 Mo.:  2.05% Min. Deposit:   $500
APY -5 Yr.:  3.20% Min. Deposit:   $500
APY -3 Yr.:  3.00% Min. Deposit:   $500
APY -2 Yr.:  2.80% Min. Deposit:   $500
APY -6 Mo.:  1.70% Min. Deposit:   $500
APY -5 Yr.:  3.25% Min. Deposit:   $2,500
APY -3 Yr.:  3.15% Min. Deposit:   $2,500
APY -2 Yr.:  3.05% Min. Deposit:   $2,500
APY -1.5 Yr.:  2.95% Min. Deposit:   $2,500
APY -6 Mo.:  1.75% Min. Deposit:   $2,500
APY -1 Yr.:  0.70% Min. Deposit:   $250
APY -5 Yr.:  3.61% Min. Deposit:   $0
APY -4 Yr.:  3.50% Min. Deposit:   $0
APY -3 Yr.:  3.50% Min. Deposit:   $0
APY -2 Yr.:  3.40% Min. Deposit:   $0
APY -1.5 Yr.:  3.30% Min. Deposit:   $0
APY -6 Mo.:  2.50% Min. Deposit:   $0
APY -5 Yr.:  3.25% Min. Deposit:   $1,000
APY -4 Yr.:  3.10% Min. Deposit:   $1,000
APY -3 Yr.:  3.05% Min. Deposit:   $1,000
APY -2 Yr.:  2.85% Min. Deposit:   $1,000
APY -1.5 Yr.:  2.50% Min. Deposit:   $1,000
APY -6 Mo.:  1.75% Min. Deposit:   $1,000
APY -5 Yr.:  3.25% Min. Deposit:   $1,000
APY -4 Yr.:  3.15% Min. Deposit:   $1,000
APY -3 Yr.:  3.10% Min. Deposit:   $1,000
APY -2 Yr.:  2.95% Min. Deposit:   $1,000
APY -1.5 Yr.:  2.80% Min. Deposit:   $1,000
APY -1 Yr.:  2.75% Min. Deposit:   $1,000
APY -6 Mo.:  1.55% Min. Deposit:   $1,000

How to find the best 12-month CD rates

The best 12-month CD rates are typically found through online banks and credit unions. Online banks have less overhead costs compared to traditional brick-and-mortar banks. This allows them to pass on savings to customers in the form of some of the best CD rates. Make sure your money is protected (by the FDIC for banks and the NCUA for credit unions) at whatever financial institution you choose.

How to compare the best 12-month CD rates

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 12-month CDs.

Minimum deposit: Many 12-month CDs feature a minimum deposit requirement. Check account details to find out the requirements for your CD. If you need a minimum deposit, make sure you have enough funds to meet it. If you plan to build a CD ladder, keep in mind that you’ll likely have to meet a minimum deposit on each CD account.

Fees: Most 12-month CDs don't have monthly maintenance fees, but it's important to double-check. To get the full benefits of your 12-month CD, you'll want to avoid fees.

Withdrawal penalties: CDs are meant to be funded and left alone until they reach maturity. You'll end up paying costly withdrawal penalties if you need to take out your money before then. If you think you might need those funds in less than 12 months, consider a shorter CD term or a different type of savings account.

Compounding interest: Find out how the interest on your 12-month CD will compound. The best 12-month CD rates compound daily, which will earn slightly more money than those that compound weekly or monthly.

Interest payouts: Most 12-month CDs let you choose how interest is paid out. Often, you can choose to receive a monthly, quarterly, or annual payout. You can also usually choose to add the interest to your 12-month CD balance. 

CD maturity: Watch out for automatic renewal on your CD account. Even if you plan to enroll again, you'll want to shop around for the current best CD rates before doing so. Don't opt for automatic renewal, or you might get locked into a 12-month CD with a low rate.

Make sure that the CD that you choose is FDIC insured. This will cover up to $250,000 per depositor. Although FDIC insurance seems like a given, it's always good to verify.

What to consider when choosing a 12-month CD

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.

Pros

Higher rates: Banks usually give higher rates as a reward for leaving your money with them for fixed periods. That's why the best CD rates are typically higher than rates for traditional savings accounts. 

Protection against interest rate drops: If market CD rates drop in the 12 months after you open a CD, you won't need to worry. Your money will continue to earn the same fixed interest rate that you started with. 

Predictable returns: Because CD rates are fixed, it's easy to calculate precisely how much you'll earn with a 12-month CD.

Cons

Fixed rates: Having a fixed rate also means you might miss out on extra earnings. If market CD rates jump up during your term, you'll be stuck with the same fixed rate. 

Penalties: There's always a risk in tying up money for a set amount of time. If you need to withdraw your money before your 12-month CD reaches maturity, you'll get hit with costly early withdrawal penalties.

Inflation risk: Although not as big of an issue with shorter CD terms, there's a chance your 12-month CD might not keep up with inflation. Opting for short CD terms may protect you from this.

Alternatives to a 12-month CD

Twelve-month CDs are a great way to earn a decent interest rate on your savings. However, they are not right for everybody. Here are some alternatives that may be a better fit:

High-yield savings account: These top 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 carry a monthly maintenance fee.

Money market account: 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 extra tools, like an ATM card or checks. 

Long-term CDs: Most banks have CD terms ranging from a few months to five years. Some banks have options for 10-year rates, too. Usually, longer terms mean higher CD rates. Only sign up for a longer CD term if you won't need access to your money during the term.

Investments: 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
3.00% - 1 Yr. $2,500
2.50% - 1 Yr. $500
3.05% - 1 Yr. $0
3.00% - 1 Yr. $500
3.25% - 1 Yr. $0
3.00% - 1 Yr. $5,000
3.00% - 1 Yr. $0
3.00% - 1 Yr. $1,500
3.15% - 1 Yr. $0
2.35% - 1 Yr. $1,000
2.85% - 1 Yr. $2,500
2.25% - 1 Yr. $500

FAQs

  • 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.

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