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Savers willing to temporarily stash their cash can reap solid rewards in this unique savings environment where 1-year CD rates are often yielding more than longer-term offerings. To determine the best one-year CD products, we evaluated more than 140 certificates of deposit (CDs) and the financial institutions offering them, looking at interest rates, customer ratings and more, to determine the best one-year CDs.

Annual percentage yields (APYs) and account details are accurate as of June 14, 2024.

Best 1-year CD rates

Why trust our banking experts

Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.

  • 140 CDs from 84+ financial institutions reviewed.
  • 4 levels of fact checking.
  • 50+ data points analyzed.

My eBanc Online Time Deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
5.30%
Minimum deposit requirement
$5,000
What should you know
With some of the highest CD interest rates on the market, My eBanc is a good option if you can meet the relatively high minimum balance requirement. Its one-year CD offers a very competitive 5.30% APY that compounds on a daily basis and is credited to your account monthly.
Pros and cons
Pros
  • Competitive yields.
  • Daily compounding interest.
  • No monthly fees.
Cons
  • High deposit requirement.
  • Only five term options.
  • Limited reviews of the mobile app.

Michigan State University Federal Credit Union 1-year Add-On certificate

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
4.25%
Minimum deposit requirement
$50
What should you know
Savers have one option to park their cash: a one-year add-on certificate. This CD comes with just a $50 minimum and allows you to increase your savings up to $10,000 throughout the term up. It comes with an impressive 4.25% APY and easily meet membership requirements: You just need to make a one-time donation of $10 to the Desk Drawer Fund and that’s only if you don’t already qualify by means of affiliation with the university. The tradeoff, then, is best used for savers starting out. If you have the means to save more, you’ll find higher rates elsewhere.
Pros and cons
Pros
  • Competitive yields.
  • Easy-to-meet membership requirement.
  • Wide range of other CD terms available.
Cons
  • Mediocre mobile app ratings (2.9 stars out of five).
  • Membership required to open a CD.
  • Compounds monthly, not daily.

Connexus Credit Union share certificates

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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
4.91%
Minimum deposit requirement
$5,000
What should you know
Connexus offers a 4.91% APY on its one-year certificates, which is higher than many of the products we researched. The minimum can be high for new savers, but is reasonable for folks farther along in their financial journey, especially if you’re holding on to a future home down payment. While credit unions do require membership, Connexus’s requirements aren’t overwhelming. To join, you only need to make a one-time $5 donation to the Connexus Association for charitable purposes.
Pros and cons
Pros
  • Competitive rates.
  • Highly-rated mobile app (4.7 from the Apple App Store, 4.7 from Google Play Store).
  • A+ grade from the Better Business Bureau.
Cons
  • Higher minimum deposit.
  • Interest compounds quarterly, rather than monthly or daily.

Sallie Mae certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
5.15%
Minimum deposit requirement
$2,500
What should you know
Although Sallie Mae specializes in savings and loans for education, you can open one of its CDs for any reason. The bank doesn’t charge account fees and offers a high 5.15% APY on its one-year CDs. You do need to meet the $2,500 minimum balance, which is tough for those starting out, but not astronomical. The yield rate compounds daily and earnings are credited monthly. If you need to make an early withdrawal, the penalty doesn’t burn too much — only 90 days’ worth of simple interest on the amount you divest.
Pros and cons
Pros
  • Competitive yields.
  • No monthly fees.
  • Daily compounding interest.
Cons
  • High minimum deposit.
  • Early withdrawal penalties can affect your principal.
  • No checking accounts and limited banking tools.

PenFed Money Market certificates

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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
4.00%
Minimum deposit requirement
$1,000
What should you know
Pentagon Federal Credit Union’s one-year certificate (credit union parlance for CD) offers a robust 4.00% APY and an affordable minimum required deposit of $1,000. The credit union also allows savers to alter the maturity of the certificate before its term ends. Plus it scored well on customer service metrics. To become a member, you only need to open a savings account with a $5 deposit. PenFed’s other CDs and savings products are likely worth a look as well, if you’re considering other options or building a CD ladder.
Pros and cons
Pros
  • Wide range of certificate terms.
  • Competitive yields.
  • Strong customer reviews.
Cons
  • Early withdrawal penalties.
  • No access to dividends until certificates mature.
  • Membership required.

Bread Savings certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
5.25%
Minimum deposit requirement
$1,500
What should you know
When you put your dough into a Bread Savings CD, you’ll earn a very competitive 5.25% APY, which is compounded daily so your savings rise yet more quickly. Savvy savers will notice that each of Bread’s CDs with terms between one and three years offer the same yield, which makes the one-year option all the more appealing. A minimum balance of $1,500 is manageable for most in the market for CDs, and there are no maintenance fees, either. An early withdrawal from a one-year CD however means a penalty of 180 days’ worth of interest, which is the industry norm.
Pros and cons
Pros
  • Highly competitive yields.
  • High Apple App Store rating.
  • Daily compounding interest.
Cons
  • $25 outgoing wire transfer fee.
  • $15 check request fee.

First National Bank of America certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
5.05%
Minimum deposit requirement
$1,000
What should you know
The First National Bank of America has a strong 5.05% APY on its one-year CD and requires a modest $1,000 minimum balance. All of its CDs have competitive rates and a 10-day grace period, which allows you to add funds to your CD up to 10 days after opening the account before things are immutable. If you’re potentially interested in longer-term CDs, First National Bank of America is one of the rare banks to offer CD terms of 72 and 84 months as well. To withdraw funds early on the one-year CD, you’ll face a penalty of 180 days’ worth of interest.
Pros and cons
Pros
  • Competitive yields.
  • Lots of terms available. 
  • Highly rated mobile app.
Cons
  • Limited availability of branches.
  • Steep early withdrawal penalties.
  • Few short-term CD terms available.

Synchrony Bank certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
4.80%
Minimum deposit requirement
$0
What should you know
Synchrony Bank CDs have no minimum balance requirement, making them extremely accessible, especially if you’re just getting started with your savings. Its one-year CD currently offers a strong 4.80% APY, which you’re guaranteed to receive as long as you fund your CD within 15 days of opening the account. If Synchrony raises its rates within those 15 days however, you’ll automatically get the higher rate.

Citi® Certificates of Deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
CD APY 12 month
2.00% to 3.00%
Minimum deposit requirement
$500
What should you know
It’s rare for one of the largest banks in the U.S. to also offer a strong CD rate. As the third largest financial institution in the country, Citibank surprisingly offers a competitive one-year CD option from 2.00% to 3.00% APY. The minimum balance requirement of $500 is very affordable and you can pick whether the CD’s interest is paid to you monthly or at the CD’s maturity. A one-year, no-penalty CD is also available.
Pros and cons
Pros
  • Lots of saving and banking options.
  • Physical branches in large cities.
  • Low minimum balance requirement.
Cons
  • Stronger yields available elsewhere.
  • Small grace period at maturity (seven days rather than 10).
  • Early withdrawal penalty.

Compare the best CDs

INSTITUTIONSTAR RATING1-YEAR APYMINIMUM BALANCE
My eBanc
4.7
5.30%
$5,000
Michigan State University Federal Credit Union
4.7
4.25%
$500
Connexus
4.7
4.91%
$5,000
Sallie Mae Bank
4.6
5.15%
$2,500
PenFed
4.6
4.00%
$1,000
Bread Savings
4.5
5.25%
$1,500
First National Bank of America
4.5
5.05%
$1,000
Synchrony Bank
4.4
4.80%
$0
Citibank
4.4
2.00% to 3.00%
$500

Methodology

The most important category for a one-year CD is the APY; an account needs to offer a high rate in order to be considered. That’s why we tilted our methodology so heavily in that direction. A bank can offer the best customer service in the world, but if they don’t provide competitive rates, then you’ll have trouble meeting your financial objectives.

Non-APY factors still played a part, with customer experience being an important factor. To round out the score, we analyzed CD accounts further, valuing those with lower minimum deposits, daily compound interest schedules (rather than monthly) and those that are nationally available (think credit unions with an open versus limited membership).

We looked at over 140 CDs offered by 84 financial institutions and evaluated them to create a star rating for each. An institution with a perfect score of 100 would get five stars. One with a score of 80 would get four stars and so on. Here are the categories we analyzed and how we weighted each.

  • APY: 75%
  • Customer experience: 5%
  • Minimum deposit: 5%
  • Compound interest schedule: 5%
  • Digital experience: 5%
  • Available terms: 3%
  • Availability: 2%

We monitor over 80 financial institutions, including Capital One, PenFed, Discover, Chase, TD Bank, Marcus by Goldman Sachs, TIAA Bank, Colorado Federal Savings Bank and American Express Bank.

Why some banks didn’t make the cut

We used the same report card to judge each CD and not every bank had one of the best one-year CDs. You’ll notice that many of the largest banks in the country didn’t make the cut.

This is primarily because larger banks don’t need to attract customers by offering great rates. They already have household names that Americans have known for generations, whereas smaller institutions offer competitive CD rates to make a splash and attract customers.

Those that did make our list graduated from our methodology rating with flying colors.

National average interest rate for CDs

Several factors influence CD rates, including the federal fund rate set by the U.S. Federal Reserve, and the type and the length of the CD.

“Generally longer-term CDs have higher rates to compensate investors for tying their funds up longer,” said a CFP at Lattice Financial in Charlotte.

As of May 20, 2024, the for a one-year CD was higher than any other, according to the Federal Deposit Insurance Corporation (FDIC).

CD TERMNATIONAL DEPOSIT RATE (AS OF MAY 20, 2024)
1 month CD
0.23% APY
3 month CD
1.53% APY
6 month CD
1.79% APY
12 month CD
1.80% APY
24 month CD
1.54% APY
36 month CD
1.42% APY
48 month CD
1.33% APY
60 month CD
1.40% APY

As of June 13, 2024, the current national high rate for a 12-month CD is 5.37% APY according to Curinos data.

Are 1-year CD rates going up?

Yes. In 2022, after more than a decade of low rates, the Federal Reserve increased the federal fund rate seven times in an effort to stamp down national inflation. When the Federal Reserve changes the federal funds rate, CD rates typically follow.

Financial institutions use the federal funds rate to help determine how much to charge in interest for lending products and how much to offer in interest on deposit accounts such as savings accounts and CDs. As rates spike, consumers face higher costs of borrowing, but, on the flip side, see a boost in their interest earnings.

The following table outlines how large these recent rate increases were.

FOMC MEETING DATERATE CHANGE (BPS)FEDERAL FUNDS RATE
March 17, 2022
2500.00%
0.25% to 0.50%
May 5, 2022
5000.00%
0.75% to 1.00%
June 16, 2022
7500.00%
1.5% to 1.75%
July 27, 2022
7500.00%
2.25% to 2.5%
Sept. 21, 2022
7500.00%
3.00% to 3.25%
Nov. 2, 2022
7500.00%
3.75% to 4.00%
Dec. 14, 2022
5000.00%
4.25% to 4.50%
Feb. 1, 2023
2500.00%
4.50% to 4.75%
March 22, 2023
25
4.75% to 5.00%

When is a 1-year CD a good idea?

CDs are a great way to safely earn interest on money you aren’t currently using.

“CDs can be a good place to invest cash for individuals who are saving for short-term goals,” said Desiree Kaul of Main Street Planning in Satellite Beach, Fla. If you’re saving up for a car or a vacation, a CD may be an ideal option.

You can own multiple CDs with staggering maturities, which is called CD laddering. This gives you access to cash and the ability to save in longer term fares should rates rise.

1-year CD vs high yield savings account: how they work

CDs tend to earn higher interest rates than savings accounts, but these increased earnings come with a tradeoff. You have to keep the cash in the CD for a set period of time and can’t remove it until it matures, otherwise you’ll likely pay an early withdrawal penalty.

A CD isn’t a great option for storing the cash that you may need to access in a hurry. High-yield and online savings accounts allow much greater flexibility. As liquid accounts, they’re highly accessible, you can withdraw from them at any time, which makes them a perfect place to store emergency savings.

The financial rule of thumb is to have three- to six-months worth of expenses in a savings account so you’re able to support yourself and your family in case you lose your job or a disaster strikes. Once you have that, CDs are a great way to expand your deposits.

How to open a 1-year CD

1. Chose a CD provider

Research the best CD rates and pick the bank or credit union you want that offers the highest rate you can get.

As you look at the best rates, you’ll find that many of the big, brick-and-mortar banks don’t offer the most competitive yields. But they can offer great convenience, especially if you’re already a customer.

To help you if that’s the case, we reviewed CD rates for some of the largest banks in the nation:

2. Set up an account

Even if you’re already a customer of the CD provider you choose, you’ll need to set up your CD account by logging in and clicking the appropriate buttons.

If you’re becoming a customer or a member with this institution for the first time, you’ll need to provide some personal information, including your name, date of birth, contact information and government ID number, such as your Social Security number or Taxpayer Identification number.

You’ll also likely be asked to choose how and when you want the interest that your CD earns. Many institutions give you options of receiving the interest monthly, quarterly or at the end of the term, when the CD matures.

3. Transfer funds

To fully open a CD, you need to put money in it. You’ll have to meet any required minimum deposit amount, which commonly ranges from $500 to $2,000 but can be as low as “none” and as high as $100,000+ for jumbo CDs.

4. Sign paperwork

With the money ready to go, the last thing to do is to sign paperwork, agreeing to terms and conditions. The contract will outlay the relationship between you and the bank and state the APY your deposit will earn.

How are CDs taxed?

The money you earn on a CD counts as taxable income in most situations.

“CDs are taxed at both the state and federal levels,” said Mullikin.

If you earn more than $10 in CD interest, you should receive a tax document from your CD provider, either Form 1099-INT or Form 1099-OID. Whether you receive the forms or not, you are still responsible for reporting all taxable income, otherwise you risk paying backup withholding and a penalty.

However, if your CDs are part of your individual retirement account (IRA), then your taxes will be different. “You can have a CD in an IRA, traditional or Roth—then the rules are based on IRA taxes,” said Nicholas Bunio, CFP in Downingtown, Pa.

Consider alternative CD terms

When looking for a one-year CD, don’t completely discount other terms. With CD rates up across the board, other CDs can be great, low-risk investments.

Even if a longer-term vehicle has a slightly lower APY, you would earn more in interest over time.

For example, $5,000 invested in a one-year CD with a 4.00% APY would earn more than $200. A two-year CD with a 3.80% APY would earn nearly $400.

Why you should pay attention to odd terms

Providers sometimes run specials on CDs with an unusual amount of months, such as 10-, 11-,13- and 14-month CDs. By going a month or two over or under, you could get a higher APY.

If you have a cut-off date for when you need your cash, keep in mind that you could string together shorter-term CDs and still meet the deadline, such as two sequential six-month CDs or, for the long-term saver, two five-year CDs.

Frequently asked questions (FAQ)

A higher CD rate is always better. As of May 20, 2024, the on a 12-month CD is 1.80% APY. However, the lowest rate on our list above is right around 4.00% APY.

No one knows what CD APYs will look like in six months for sure. But, choosing a six-month CD gives you more flexibility. When it matures in half a year, you can move your funds into another CD with a higher rate, if rates have gone up, or you could invest it in a completely different way.

Almost everyone should have a savings account. When something happens, like if you break an arm or need new tires, you can cover the costs from your savings and don’t have to get a loan. If you want to get a CD in addition to a savings account, that’s great.

As of March, Bread Savings has the best 12-month CD rate with a 5.25% APY and a $1,500 minimum deposit.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

During college, Jacqueline DeMarco interned at a retirement plan advisory firm and was tasked with creating a presentation on the importance of financial wellness. During her research into how money can affect our health, relationships and career, Jacqueline realized just how important financial education is. Today, Jacqueline has worked with more than two dozen financial brands, including LendingTree, Capital One, Credit Karma, Fundera, Chime, Bankrate, Student Loan Hero, SoFi, and Northwestern Mutual, providing thoughtful content to give readers insight into complex topics that they likely didn’t learn in school.

Jenn Jones

BLUEPRINT

Jenn Jones is the deputy editor for banking at ӣƵ Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.