The best 1-year CD rate is offered by NexBank and is 5.40% APY. We compare 1-year CD rates from hundreds of banks and credit unions daily to bring you the best offers in the country. Since 2019, Investopedia has kept tabs on CD rates. We examine elements like duration, early withdrawal penalty, and minimum opening deposit that will assist readers in selecting the best CD.
Our 1-year rankings are applicable to CD maturities of 10 to 14 months, with a maximum deposit requirement of $25,000. If you're trying to meet a short-term investment or savings target, the CDs on this list can be a suitable choice. Though you may always look at the best CD rates for shorter terms or even a top-paying high-yield savings account, a 1-year CD could be too big of a commitment.
The best CD rates we could find for all U.S. consumers worldwide are shown below, followed by the best CD rates offered by our partners.
Best 1-Year CD Rates
- NexBank – 5.40% APY
- CIBC Agility – 5.36% APY
- Limelight Bank – 5.35% APY
- TotalDirectBank – 5.35% APY
- CFG Bank – 5.31% APY
- Rising Bank – 5.31% APY
- Northpointe Bank – 5.30% APY
- Prime Alliance Bank – 5.30% APY
- Northern Bank Direct – 5.30% APY
- Colorado Federal Savings Bank – 5.30% APY
- My eBanc – 5.30% APY
- Home Savings Bank – 5.30% APY
- TAB Bank – 5.27% APY
- First Internet Bank – 5.26% APY
- First Central Savings Bank – 5.25% APY
- Mountain America Credit Union – 5.25% APY
- KS State Bank – 5.25% APY
- Forbright Bank – 5.25% APY
- Seattle Bank – 5.25% APY
- Bread Savings – 5.25% APY
Tips: Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years.
NexBank – 5.40% APY
- Term (months): 12
- Minimum deposit: $25,000
- Early withdrawal penalty: 6 months of interest
- About: Chartered in 1922, NexBank operates three branches in Dallas and serves customers nationwide with online banking.
Read alos:
- How to Use Mutual Fund Technical Indicators
- Venture Capital Funds: An Overview for Investors and
- Origin Investments Review 2024
- Guide to Successfully Pitching for Series A, B,
CIBC Agility – 5.36% APY
- Term (months): 12
- Minimum deposit: $1,000
- Early withdrawal penalty: 1 month of interest
- About: Headquartered in Toronto, CIBC's U.S. operations were established in 1991. CIBC Agility is the bank's online banking arm.
Limelight Bank – 5.35% APY
- Term (months): 12
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Limelight is an internet-only division of Capital Community Bank, which was established in 1993 and operates five branches in Utah.
Total Direct Bank – 5.35% APY
- Term (months): 12
- Minimum deposit: $25,000
- Early withdrawal penalty: 3 months of interest
- About: TotalDirectBank is an online-only operation of City National Bank of Florida, established in Miami in 1946.
Not available in Florida and California
CFG Bank – 5.31% APY
- Term (months): 12
- Minimum deposit: $500
- Early withdrawal penalty: 6 months of interest
- About: Headquartered in Baltimore with two brick-and-mortar branches in that area, CFG offers select banking products online to customers throughout the country.
Read also: Exit Strategies Unveiled: The USA Entrepreneur's
Rising Bank – 5.31% APY
- Term (months): 12
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Rising Bank is an Internet-only division of Midwest BankCentre of St. Louis, Mo., established 1906.
Northpointe Bank – 5.30% APY
- Term (months): 11
- Minimum deposit: $25,000
- Early withdrawal penalty: 3 months of interest
- Overview: Northpointe was established in 1999 in Grand Rapids, Michigan, where it still maintains its one brick-and-mortar location. Anyone nationwide can open an account online.
Prime Alliance Bank – 5.30% APY
- Term (months): 12
- Minimum deposit: $500
- Early withdrawal penalty: 1 month of interest
- Overview: Established in 2004, Prime Alliance operates one branch in metropolitan Salt Lake City, while also offering deposit products online to customers throughout the U.S.
Read also: Capital Chronicles: The Ever-Evolving Story of Funding
Northern Bank Direct – 5.30% APY
- Term (months): 12
- Minimum deposit: $500
- Early withdrawal penalty: 12 months of interest
- Overview: Northern Bank Direct is the online division of Northern Bank. FDIC-insured since 1960, Northern Bank is headquartered in Woburn, Massachusetts.
Colorado Federal Savings Bank – 5.30% APY
- Term (months): 12
- Minimum deposit: $5,000
- Early withdrawal penalty: 3 months of interest
- Overview: Colorado Federal was founded in 1990 and is headquartered in Greenwood Village, Colorado. In addition to serving communities across the state, it serves customers nationwide with online banking.
My eBanc – 5.30% APY
- Term (months): 12
- Minimum deposit: $5,000
- Early withdrawal penalty: 3 months of interest
- Overview: My eBanc is an online banking arm of the brick-and-mortar institution BAC Florida Bank, established in 1973.
Read also: Funding Frontiers: Exploring Innovative Approaches to Exits
Why You Can Trust Our Recommendations for the Best 1-Year CD Rates
Every morning, Investopedia gathers thousands of CD rates from hundreds of banks and credit unions. We rank CD rates based on criteria including duration, early withdrawal penalty, and minimum opening deposit that will assist readers in selecting the best CD. In order to give our readers objective, thorough evaluations and help them make the best selections for their requirements, we also do in-depth research on banks and credit unions. Since its establishment in 1999, Investopedia has assisted users in locating the greatest CD rates.
Our recommended CDs must be accessible across the country, and these certificates usually pay at least three times the national average. Each CD must have a minimum starting deposit of no more than $25,000 in order to be eligible for our 1-year CD rankings. Additionally, the CD must be issued by a bank or credit union that is FDIC-insured or NCUA-insured (which insures up to $250,000 per depositor). Our CD rankings for one year encompass terms ranging from 10 to 14 months.
What Is a 1-Year CD and How Does It Work?
One-year certificates of deposit (CDs) are unique account kinds that often offer interest rates higher than those of conventional savings accounts. You will be required to lock up your assets for a period of 10 to 14 months in exchange for the high rate. Since you can access the money before next year, this can be advantageous for your short-term savings.
Compared to funds that can fluctuate wildly in a savings, money market, or checking account, banks and credit unions are ready to offer higher rates on one-year CDs because they can usually depend on those funds being in the account.
Tips: Be sure to carefully review the terms of your prospective CD before signing off on it and funding the account. But if you find you've changed your mind about the CD within the first few days of opening it, some banks offer a grace period enabling you to quickly exit penalty-free.
Read also: Raising the Bar: Funding Strategies and Exits Essentials