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The average rate for a 1-year CD in the US is 1.79% APY (Annual Percentage Yield). However, the best online banks pay well over 5% APY on a 1-year CD.
The best CD rate on a 1-year CD is 6.00% APY from City Credit Union. If you are looking for additional CD options, there are other financial institutions with high 1-year CD rates, too.
We check rates daily to find the best rates for 1-year terms. Here are our recommendations for the best 1-year CDs.
Best 1-Year CD Rates
Market Leader
City Credit Union 12 Month CD - Product Name Only :City Credit Union 12 Month CD - APY APY
Membership at City Credit Union is open to anyone who lives, works, worships, or attends school in an eligible county in Texas (Cooke, Grayson, Wise, Denton, Collin, Hunt, Rockwall, Dallas, Tarrant, Parker, Johnson, Ellis or Kaufman County).
Top 1-Year CD Rates
Popular Direct 1 Year CD - Product Name Only :Popular Direct 1 Year CD - APY APYLendingClub 1 Year CD - Product Name Only :LendingClub 1 Year CD - APY APYBMO Alto 1 Year High Yield CD - Product Name Only :BMO Alto 1 Year High Yield CD - APY APYForbright 1 Year Online CD - Product Name Only :Forbright 1 Year Online CD - APY APYTotalDirectBank 1 Year CD - Product Name Only :TotalDirectBank 1 Year CD - APY APYLimelight Bank 1 Year Online CD - Product Name Only :Limelight Bank 1 Year Online CD - APY APYCIBC Agility 1 Year CD - Product Name Only :CIBC Agility 1 Year CD - APY APY
Compare the Best 1-Year CDs
1-Year CD FAQs
Are 1-year CDs worth it?
A 1-year CD may be worth it if you don't need access to some of your savings for an entire year. Some of the highest CD rates overall are available as 1-year terms.
What is a 1-year CD?
A 1-year CD is a type of savings account. You'll put money into an account for 12 months and earn a fixed rate. You have the option to renew your CD at the end of the year, or close the account and take out your money.
Who has the highest 12-month CD rate?
The best rate for a 12-month CD is
Which is better, a 1-year CD or a high-yield savings account?
CD could be better than a high-yield savings account if you do not need immediate access to your money or expect interest rates to drop. If rates are rising or you'll need regular access to your money, a savings account might be a better fit.
1-Year CD Reviews
These are our picks for the best 1-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you're worried about bank failures, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
City Credit Union 12 Month CD - Product Name Only
City Credit Union is a great choice for getting a CD if you live in North Texas and prioritize banking with a credit union. The credit union is offering
To join City Credit Union, you must live, work, worship, or attends school in an eligible county in Texas (Cooke, Grayson, Wise, Denton, Collin, Hunt, Rockwall, Dallas, Tarrant, Parker, Johnson, Ellis or Kaufman County).
The credit union's CD has a
APY for 1-year CD:
1-year CD early withdrawal penalty: 90 days of interest
Popular Direct 1 Year CD - Product Name Only
Popular Direct CDs pay competitive rates, and compound interest daily.
You'll need at least
APY for 1-year CD:
1-year CD early withdrawal penalty: 270 days of simple interest
LendingClub 1 Year CD - Product Name Only
LendingClub CDs may be a good option if you're searching for short-term, fixed-interest savings options. The 1-year term pays the highest rate at LendingClub, followed by the 6-month and 18-month terms.
LendingClub CDs require a
APY for 1-year CD:
1-year CD early withdrawal penalty: 180 days of simple interest
BMO Alto 1 Year High Yield CD - Product Name Only
While BMO Alto is featured in our best CD rates guide for its 4-year and 5-year terms, the online division of BMO Bank also offers a competitive interest rate for a 1-year term.
BMO Alto might be a good option if you'd like to open a CD with
You might prefer another bank if you're also looking to open a checking or money market account. BMO Alto only offers a high-yield savings account and CDs.
APY for 1-year CD:
1-year CD early withdrawal penalty: 180 days of interest
Forbright 1 Year Online CD - Product Name Only
The Forbright Bank Online CD may be worthwhile if you value banking with an eco-friendly financial institution that has nationwide online CDs. The 1-year CD offers a high interest rate. You might like Forbright if you value banking with a financial institution that aligns with your values — Forbright Bank has received a Fossil Free Certification, which means that it will not lend to fossil fuel companies or projects.
If you'd like to open a checking, savings, or money market account, you'll have to open an account at a branch in Maryland. Forbright Bank also has limited online CD terms. You'll find more variety at other online banks.
APY for 1-year CD:
1-year CD early withdrawal penalty: 3 months of interest
TotalDirectBank 1 Year CD - Product Name Only
The TotalDirect Bank 1 Year CD offers a competitive interest rate on a 1-year term. TotalDirectBank also pays high rates on 3-month and 6-month terms.
TotalDirectBank is the online-only division of City National Bank of Florida. TotalDirectBank CDs have a steep minimum opening deposit of
APY for 1-year CD:
1-year CD early withdrawal penalty: 90 days of interest
Limelight Bank 1 Year Online CD - Product Name Only
The Limelight Bank CD may be a good choice if you'd like to open a CD with standard-to-low early withdrawal penalties.
Limelight Bank, an online division of CCBank, offers a 1-year CD with a high interest rate. It also has one of the best 18-month CD rates.
You'll need at least
APY for 1-year CD:
1-year CD early withdrawal penalty: 90 days of interest
CIBC Agility 1 Year CD - Product Name Only
CIBC Agility CDs may be worthwhile if you would like to open an online CD with low early withdrawal penalties. CIBC Bank USA is the US division of the Toronto-based bank Canadian Imperial Bank of Commerce and has a competitive CD rate for a 1-year term.
CIBC USA also has a
APY for a 1-year CD:
1-year CD early withdrawal penalty: 30 days of interest
Other 1-Year CDs We Considered
We looked at the following 1-year CDs as well. These CDs ultimately weren't chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.
Bask Bank CD - Product Name Only : Bask Bank paysBask Bank 1 Year CD - APY APY on a 1-year term, but our top picks have even higher 1-year CD rates right now.Bread Savings High-Yield CD - Product Name Only : A 1-year Bread Savings CD paysBread Savings 1 Year High-Yield CD - APY APY, which is just short of the rates on our list.Credit Human 1 Year Share Certificate - Product Name Only : Credit Human pays a great rate on its 1-year term, but our top picks pay even higher rates right now.- Bayer Heritage Federal Credit Union Share Certificate: Bayer Heritage FCU CDs have competitive interest rates and branches in Ohio, Pennsylvania, South Carolina, Texas, and West Virginia. It isn't one of our top picks because it experienced a cyber incident on November 1, 2023. The credit union is conducting an investigation and will provide updates on its website and social media platforms until services are fully restored.
Rising Bank CD - Product Name Only : Rising Bank has a 1-year CD with a good interest rate, but our top picks have higher rates.Latino Community Credit Union 1 Year Share Certificate - Product Name Only : Latino Community Credit Union has a high rate on a 1-year CD, but it isn't as competitive as any of our top picks. You still might like this option if you live in North Carolina and prioritize banking with a local financial institution.Gulf Coast Federal Credit Union Share Certificate - Product Name Only : Gulf Coast Federal Credit Union has a 1-year share certificate special offering a high interest rate (new deposits only). It didn't make our list because it local financial institution that serves only certain communities. Other banks also offer more competitive rates so it isn't a market leader for a 1-year term. You still might consider this option if you live in select counties in Texas.Connexus Credit Union 1 Year Share Certificate - Product Name Only : Connexus Credit Union has a high 1-year CD rate, but our top picks are more competitive.Western Alliance Bank 1 Year CD - Editorial Name Only : Raisin offers great interest rates for a variety of savings accounts, but our top picks currently offer higher 1-year CD rates.Edward Jones CD - Product Name Only : Edward Jones has brokered CDs with interest rates much higher than the national average. However, you must have a brokerage account or bank account to open a CD. Our top picks also currently offer more competitive 1-year CD rates.Sallie Mae CD - Product Name Only : Sallie Mae CD rates recently dropped. The 1-year term paysSallie Mae 1 Year CD - APY APY, which is lower than our top picks.Crescent Bank CD - Product Name Only : Crescent Bank's 1-year CD paysCrescent Bank 1 Year CD - APY APY, which is just short of the top rates on our list.USALLIANCE Financial 12 Month Certificate - Product Name Only : A 1-year USALLIANCE Financial Certificate paysUSAlliance Financial 12 Month Certificate - APY APY, but our top picks offer more competitive interest rates right now.BrioDirect High-Yield CD - Product Name Only : BrioDirect has a 1-year CD that paysBrioDirect 12 Month High-Yield CD - APY , but our top picks offer higher rates right now.First Internet Bank of Indiana CD - Product Name Only : First Internet Bank of Indiana has a 1-year CD payingFirst Internet Bank of Indiana 1 Year Certificate of Deposit APY, but its rate is just short of the rates on our list.Quontic CD - Product Name Only : Quontic Bank has a good rate, just not quite as high as what you'll find on our list.America First Credit Union Certificate - Product Name Only : AFCU pays a high rate on its 1-year term, but the rates at our top picks are slightly higher.Barclays Online CD - Product Name Only : Barclays CDs can be opened withBarclays Online CD - Minimum Deposit , but our top picks offer higher interest rates.Vio Bank CD - Product Name Only : Vio Bank's 1-year term pays a lower interest rate than our top picksAir Force Federal Credit Union Certificate Account - Product Name Only : Air Force Federal Credit Union pays high CD rates for a 1-year term but you'll need a minimum of $100,000 to qualify for the highest interest rate.Pentagon Federal Credit Union Money Market Certificate - Product Name Only : PenFed pays a good interest rate on a 1-year CD, but our top picks have even higher rates right now.Alliant Certificate - Product Name Only : Alliant offers competitive interest rates for short-term CDs. However, our top picks have even higher interest rates with lower minimum opening deposits.American Express® CD - Product Name Only : American Express lets you open a CD withAmerican Express® CD - Minimum Deposit , but our top picks offer more competitive interest rates right now.Marcus High-Yield CD - Product Name Only : Marcus has high-yield CDs with solid interest rates, but our top picks have more competitive rates for a 1-year CD.Capital One 360 Certificate of Deposit® : Capital One 360 might be worth considering if you'd like to open a CD with a low minimum opening deposit. But, its CD rates aren't as competitive as our top picks.Citi Fixed Rate Certificates of Deposit : Citi Fixed Rate CDs have a lowCiti Fixed Rate Certificates of Deposit minimum opening deposit. Still, our top picks pay higher interest rates right now.Bank5 Connect High-Yield Certificate of Deposit : Bank5 Connect has a strong interest rate on a 6-month CDs, but its other CD terms aren't as strong.Nationwide CD : Nationwide's 1-year CDs and 18-month CDs are its most appealing options, but other online banks offer even higher rates right now.Ally High Yield Certificate of Deposit : Ally CDs might be a good choice if you'd like to get a CD with aAlly High Yield Certificate of Deposit minimum opening deposit or low early withdrawal penalties. But its CD rates are currently lower than any of the banks on our list.Discover CD : The initial opening deposit for a Discover CD isDiscover CD . Our top picks have lower minimum opening deposits.Citizens Online Certificate of Deposit : You'll need at leastCitizens Online Certificate of Deposit to open an account, which is a bit steep compared to other online banks.Amerant CD : Amerant has solid interest rates, but our top picks offer more competitive rates right now.NBKC CD : NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren't as strong.Live Oak Bank CD : Live Oak Bank offers a competitive interest rate, but you'll need at leastLive Oak Bank Certificate of Deposit to open an account.
Bank Trustworthiness and BBB Ratings
We've compared each banks Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Institution | BBB grade |
| City Credit Union | A+ |
| Popular Direct | A+ (Rating for its parent bank, Popular Bank) |
| LendingClub | A+ |
| BMO Alto | A+ |
| Forbright Bank | A+ |
| TotalDirectBank | A+ (rating for its parent bank, City National Bank of Florida) |
| Limelight Bank | A+ (rating for parent bank, CCBank) |
| CIBC USA | A+ (F rating from CIBC) |
The BBB gives CIBC Bank USA an A+ rating. However, its parent company CIBC has an F rating because the BBB has received numerous complaints and hasn't responded to or resolved some complaints.
A BBB rating isn't necessarily the be-all and end-all. If you'd like to see if a company is a good fit, talk to current customers or read online customer reviews.
In 2021, CIBC agreed to pay $125 million in a settlement when accused of misrepresenting financial information regarding CIBC investments and US residential mortgage-backed securities.
In July 2021, LendingClub Corporation paid $18 million in a settlement with the Federal Trade Commission when accused of deceptive lending practices that charged consumers hidden fees and told them they were approved for a loan even when they weren't.
In 2022, a Minnesota jury ordered BMO Bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO Harris didn't buy M&I Bank until 2011.
Why You Should Trust Us: Expert Advice on Choosing the Best CD
To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:
Insider
How can you be sure you're picking the right bank?
Tania Brown, certified financial planner at SaverLife, says the most important thing is FDIC insurance, which protects your money if the bank were to collapse. For credit unions, the equivalent is NCUA insurance. Next, she says, consider the experience you want to have with your bank: Do you want to walk in and talk to a person? Then you need a bank with a local branch. Are you fine never speaking to someone in person? Then an online bank will work for you. Do you write checks (or not)? Then you need an account that comes with checks.
Sophia Acevedo, a certified educator in personal finance and banking reporter for Personal Finance Insider, adds that it's a good idea to include costs in your list of priorities. For instance, is there a monthly fee for the account you want? If so, what are the requirements to waive it — and can you meet them? If it's important that you earn interest, you'll want to choose a bank and an account that pays a higher interest rate than the average bank account.
How do you choose between all the available CD terms?
Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life", says you should start by deciding when you need the money, then looking at available rates for CDs with similar timing.
Knowing how you'll use the money you plan to put in a CD is central to the one you choose, says Mykail James, MBA, certified financial education instructor at BoujieBudgets.com. Perhaps it's a house fund — in that case, if you know that you want to buy a house in two years, you'll need to make sure your CD term ends by then.
When do you use a CD instead of a high-yield savings account or money market account?
Brown says you should know two things to help make this decision: how much money you'll be putting in, and how much you plan to interact with that money. If you're going to need to make transactions before the term of a CD ends, you'll have to choose a high-yield savings or money market account.
Acevedo adds that both the high-yield savings account and money market account can be good options for an emergency fund or short-term savings goals. The best savings accounts tend to offer strong interest rates, while money market accounts typically offer more access to your money, like paper checks or debit cards.
Our Methodology
Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.
First, we researched to find over 20 banks and credit unions that offered 1-year CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.