The best 1-year CD rates offered by national banks and credit unions are much higher than the national average. The best CD rate for a 12-month CD term right now is 4.55% APY from Credit Human Federal Credit Union.
We review nationwide banks and credit unions daily to help you find the best 1-year CD. It's a great time to open a CD; the Fed kept its rates steady at the last Fed meeting, but it might drop rates in the future.
In comparison, the average rate for a 1-year CD in the U.S. is 1.80% APY (Annual Percentage Yield) according to the FDIC.
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The best online banks and credit unions currently pay over 4.30% APY on a 12-month CD. Here are our recommendations for the best 1-year CDs today.
Best 1-Year CD Rates Comparison
| Account Name | APY | Minimum Opening Deposit |
| Credit Human 1 Year Share Certificate | 4.55% | $500 |
| TotalBank 1 Year CD | 4.46% | $25,000 |
| USALLIANCE Financial 1 Year Certificate | 4.40% | $500 |
| EagleBank 1 Year CD | 4.40% | $1,000 |
| Bask Bank 1 Year CD | 4.40% | $1,000 |
| America First Credit Union 1 Year Certificate | 4.35% | $500 |
| Citizens Access 1 Year Online CD | 4.35% | $5,000 |
| Live Oak Bank 1 Year CD | 4.30% | $2,500 |
| American Bank 1 Year CD | 4.30% | $500 |
Best 1-Year CD Rates Today
Business Insider's personal finance team looked at over 60 financial institutions to find the best 12-month CD rates. The best 1-year CD rates today can be found mostly through online banks and credit unions. We specify if there's other reasons why a particular CD stands out. For example, some CDs have low minimum opening deposits, low early withdrawal penalties, or even both.
Our top picks for CDs are protected by FDIC or NCUA insurance: the former for banks and the latter for credit unions. With FDIC and NCUA insurance, your money will be federally insured in case of a bank failure for up to $250,000 for single-person accounts and $500,000 for joint accounts.
Some banks offer extended FDIC insurance in case of bank failures. With extended FDIC insurance, your money will be kept across several banks, each with its own FDIC insurance. This could be helpful if you want to keep more than $250,000 in your account.
To help you get more familiarity with these banks, we also have provided Better Business Bureau ratings. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.
Credit Human 1 Year Share Certificate: 4.55% APY
Credit Human offers a high rate on its 1-year term. It's also a smart choice if you'd like a low minimum deposit of $500.
Since Credit Human is a credit union, you'll have to meet certain requirements to become a member. Luckily, Credit Human makes it easier than most: All you have to do is join the American Consumer Council. If you join while signing up for Credit Human, they'll even pay your fee. You'll also be eligible to join if you live, work, worship, or go to school in San Antonio or New Orleans, if you're an employee at certain workplaces, or if you're in the U.S. Armed Forces or National Guard, among other ways to join.
Credit Human received an A- rating from the BBB because a few customer complaints have not been resolved.
TotalBank 1 Year CD: 4.46% APY
TotalBank is an online-only bank with good rates on several CDs, including its 1-year CD. Its parent bank is City National Bank of Florida.
TotalBank charges a very high minimum opening deposit of $25,000. If you're planning on opening a CD with less money, you might prefer one of our other options.
TotalBank has an A- rating from the BBB because it hasn't responded to a customer complaint. Its parent bank, City National Bank of Florida, has a C- rating from the BBB because it hasn't responded to a few customer complaints. Neither bank has any recent controversies.
USALLIANCE Financial 1 Year Certificate: 4.40% APY
USALLIANCE Financial offers several strong rates on its CDs, including one of our best rates on 1-year CDs. It also offers a relatively low minimum opening deposit of $500.
To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
USALLIANCE Financial has a D- rating from the BBB because it hasn't responded to several customer complaints.
EagleBank 1 Year CD: 4.40% APY
EagleBank CDs has a good 12-month CD rate.
It's a middle-of-the-road option when it comes to opening requirements and penalties. You need at least $1,000 to open a CD and the penalty for an early withdrawal is 90 days of interest.
EagleBank has locations in Maryland, Virginia, and Washington, DC, so it can be a great local banking option if you live in these areas. You can also open online CDs ranging from 6-month CDs to 18-month CDs.
You'll only be able to deposit a maximum of $500,000 into a CD. Another downside to banking with EagleBank is that its mobile banking app has lackluster ratings in both the Google Play and Apple stores.
EagleBank received an A+ rating from the Better Business Bureau. The bank has been involved in one recent public settlement. EagleBank paid a civil penalty of $10 million in a settlement in 2022. The Securities and Exchange Commission accused the bank and former CEO and chairman Ronald D. Paul of making false and misleading statements about party loans relating to Paul's family trusts.
Bask Bank 1 Year CD: 4.40% APY
Bask Bank offers good CD rates overall, including its 1-year term. It offers strong rates on its 3-month CD as well; if you're interested in opening multiple short-term CDs, it might be a good choice for you.
Bask Bank has limited CD terms. If you're hoping to open a CD with a term over 2 years, you might prefer another financial institution.
Bask Bank has a B rating from the BBB because of the number of complaints filed against the business. It does not have any recent controversies.
America First Credit Union 1 Year Certificate: 4.35% APY
America First Credit Union offers many strong interest rates, including for a 1-year CD. The America First Credit Union Certificate may be worthwhile if you're searching for a financial institution with branches in Arizona, Idaho, Nevada, and Utah. America First Credit Union has a variety of terms with high interest rates.
Credit unions require membership to open bank accounts. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, New Mexico, or Utah county on this list. If you have a family member or spouse who's a current member, you're also eligible.
To become a member, you must also open an America First Credit Union Share Savings Account.
America First Credit Union has an A+ rating from the BBB.
America First Credit Union Review
Citizens Access 1 Year Online CD: 4.35% APY
Citizens is the online-only division of Citizens Bank. The Citizens Access 1 Year Online CD pays a high interest rate on a 1-year term. This account also has low early withdrawal penalties.
This CD comes with a high minimum opening deposit of $5,000. If you're planning on opening a CD with less money, you'll probably prefer one of our other options.
Citizens has an A rating from the BBB due to government action against the business.
In May 2023, the Consumer Financial Protection Bureau required Citizens to pay a $9 million penalty in a settlement that said the bank violated the Truth in Lending Act and did not resolve customer issues regarding credit cards.
Live Oak Bank 1 Year CD: 4.30% APY
Live Oak Bank offers a good rate on its 1-year CD. It also offers a savings account bonus on its savings account, which is somewhat rare. If you're interested in opening a savings account and CDs at the same financial institution, you might be interested in Live Oak Bank.
You'll need at least $2,500 to open a CD. That's a bit steep compared to other banks, so you might prefer another institution if you prefer more lenient opening requirements.
Live Oak Bank has an A- rating from the BBB due to a few complaints filed against the business. It doesn't have any recent controversies.
American Bank 1 Year CD: 4.30% APY
American Bank is another one of the top banks for 1-year CD rates. It offers good rates on short-term CDs, including its 1-year CD. It also specifically has one of the best 1-year CD rates with a low minimum deposit; you only need $500 to open a CD, which is lower than the average minimum opening deposit. Its early withdrawal penalty for a 1-year term is 90 days of interest, which is pretty standard for CDs, although some other banks on our list have more lenient policies.
American Bank is based in Pennsylvania, but it also serves people from throughout the U.S. with its online services. Keep in mind, though, that customer support hours are in ET time and typically only during traditional banking hours. That means you won't be able to call a representative on weekday nights, Saturday after noon, or any time on Sunday.
American Bank has an A+ rating from the Better Business Bureau.
Understanding 1-Year CDs and How They Work
A 1-year CD is a type of interest-earning bank account that you can open at a bank or credit union. CDs pay a fixed interest rate, and with a 1-year CD you'll earn the same rate for the entire year. This means you'll have guaranteed growth on your money for the length of your 12-month CD. You don't have to worry about your rate decreasing — you know how much you're going to earn. The flip side is that you won't get to benefit from a higher rate if the bank increases rates like you could with a variable-rate bank account, like a high-yield savings account or money market account. It's unlikely that CD rates will go up in 2025 anyway, though.
A 1-year CD only lets you deposit money when you first open the account, and you can't make additional deposits afterward. You also won't be able to take out money during the year because it's considered locked in. If you make a withdrawal, you'll be charged a fee called an early withdrawal penalty. The penalty is typically some of the interest you've earned.
CDs are best for savings that you can lock in and don't need immediate access to. It can used for a savings goal like a down payment on a home or an upcoming vacation.
CDs come with much lower risk than investing your money in the stock market because you have a guaranteed rate of return. If you're saving for a 1-year goal, you may want to go with the safer choice of opening a CD instead because one year is a relatively short amount of time.
Generally, 12-month CDs offer higher rates than high-yield savings accounts offered by the same bank because you're punished for withdrawing your money before the term length is up, making them a better choice if you're purely interested in a high interest rate. That being said, the Fed is expected to lower its rates in the future, so CD rates are lower right now to compensate. Banks don't want to be locked into a higher rate than what the rest of the market offers. Since high-yield savings accounts have variable interest rates, banks aren't preemptively lowering their savings account interest rates in the same way.
Specialty 1-Year CDs
No-Penalty 1-Year CDs
One of the risks of opening a 1-year CD is the possibility that you'll need to withdraw your money before the year is up. With most CDs, taking out your money will result in early withdrawal penalties, which generally cost you a certain amount of your interest. This can significantly cut into your profits.
If you think there's a significant chance you'll need to withdraw your money before the term length is up, a no-penalty CD might be a good choice. No-penalty CDs generally don't offer as strong of an interest rate as traditional CDs with the same term lengths, but they don't charge early withdrawal penalties. Just keep in mind that many no-penalty CDs put limits on how and when you can withdraw your funds, such as making you withdraw all your money at once or only letting you withdraw from your CD a few times across the term length.
Bump-Up 1-Year CDs
Bump-up CDs, also called bump-rate CDs, are CDs that let you raise your rate if the bank you're using increases its interest rates during your term length. Generally, you're only allowed to up your rate a few times across your term length.
If you think rates will go up during the term length of your 1-year CD and the bank's bump-up CD has a similar interest rate to its traditional CDs, a bump-up CD might be a good choice. But most bump-up CDs have much lower interest rates than their traditional counterparts. Furthermore, the Fed is expected to lower rates in the near future, so current market conditions aren't ideal to open a bump-up CD right now.
What Influences the Best 1-Year CD Rates
Changes in the federal funds rate impact interest rates on banking products. CD rates go up during rate hikes and drop during rate cuts.
The Federal Reserve is responsible for managing the federal funds rate. Eight meetings are held annually to discuss current economic conditions and potentially change rates. In the last Fed meeting, which occurred December 17-18, the Fed cut rates by 25 basis points.
Market fluctuations can influence whether specific terms are more competitive than usual. Currently, short-term CD rates are higher long-term CD rates. If you compare our top 1-year CD rates with the best 5-year terms, the former is higher.
Banks also have their own criteria for setting CD rates. You might see banks with CD specials or promotions on 1-year terms. These promotions are sometimes limited to certain customers. You also might need to deposit money from another bank (often referred to as"new money" by banks).
How to Choose the Best 1-Year CD Rate
Of course, interest rates are important when finding the best 1-year CD today. But you should also think about other criteria before getting a CD. For example, the minimum opening deposit could play an important part in choosing the right CD. If you don't have enough money to open the CD that pays the highest rate, it's still worth opening a CD that pays a little less but has a minimum you can afford.
You should also think about the early withdrawal penalty. If a bank charges high penalties for taking money out early from a 1-year CD, it could wipe out any earnings you've accumulated. If you're worried about needing money early, you may prefer a no-penalty CD with a 1-year term — they aren't super common, but they do exist.
How to Open a 1-Year CD
Locking in one of the best 1-year certificates of deposits starts by looking at options at various financial institutions. Most financial institutions allow you to open a CD online and over the phone. If the bank or credit union has physical locations, you'll also be able to open it at a branch.
Credit unions require membership to open share certificates. You'll need to meet the membership requirements and usually open a savings account along with your CD to be considered an active member.
When you're applying for a CD, make sure you have documentation ready to fill out the application, like your driver's license and Social Security number. Banks have to verify your identity before you open a bank account. Some banks will also let immigrants and non-U.S. Citizens use an alternative ID like a foreign passport or Matricula consular.
Banks will typically require you to deposit money at account opening. Also, be aware that CDs usually only let you deposit money once unless it's an add-on CD. You won't be able to make additional deposits until your account reaches maturity.
Opening a CD Ladder with a 1-Year CD
Opening a CD ladder means you open multiple CDs of different term lengths with your allotted money instead of just one. If you use this strategy, you'll have access to some of your money sooner than you would otherwise while locking in a great rate for longer. For example, if you wanted to open a 1-year CD with $60,000, you could instead open a 6-month CD, a 1-year CD, and an 18-month CD with $20,000 each. That way, you'll have access to some of your money sooner in case of an emergency, but you'd be locking in high rates for longer.
If you want to open a CD ladder, consider whether you want to open all of the CDs in the ladder at the same bank or credit union. If you do, check the rates that the bank offers on its other CDs to make sure they're all strong. That being said, you're always able to open CDs across multiple banks for your CD ladder instead of relying on just one.
Current 1-Year CD Market Conditions
Currently, 1-year CDs offer high rates compared to other CDs because they're considered short-term CDs. Since the Fed recently cut its rates and is expected to cut rates again in the future, banks don't want to be locked into a high rate for several years. Because of that, banks are offering lower rates on long-term CDs and higher rates on shorter terms. Luckily, 12-month CDs are on the long side for short-term CDs, so they could be a good choice if you want to lock in a high rate for a comparatively long time.
Pros and Cons of the Best 1-Year CDs
Benefits of the Best 1-Year CDs
- Better rates than high-yield savings accounts
- Guaranteed rate of return
- If rates go down, you keep the higher rate you have now
- Funds are insured by the FDIC
- Early withdrawal penalties may help you resist spending temptation
- Lower risk than the stock market
Disadvantages of the Best 1-Year CDs
- If rates go up, you keep the lower rate you've locked in
- You can't add more money throughout the year
- Early withdrawal penalties
- Potentially lower returns than the stock market
Alternatives to a 1-Year CD
1-Year CD vs. Shorter-Term CD
You might prefer a 3-month CD or 6-month CD if you can't part with your money for a full year. These are some of the best savings accounts for short-term savings because rates are high on short terms right now. For example, the best 6-month CD rates are comparable to the best 12-month CD rates.
1-Year CD vs. Longer-Term CD
You may want to put money into a longer CD term if you know you won't need it for more than a year. Plenty of online institutions are paying great rates on terms up to five years. However, the best 1-year CD rates are higher than long-term CDs, including the best 5-year CD rates.
If you'd like to open multiple CD terms at once, you could use a CD ladder, which involves splitting your money into multiple CD terms so you can access it at different times. For example, you could open a 1-year CD, 3-year CD, and 5-year CD. This helps you avoid some risk. You'd have access to your money and earned interest after one, three, and five years, which may be helpful if you need to make an early withdrawal. This CD strategy can also help you lock in high rates now before rates drop further.
1-Year CD vs. High-Yield Savings Account
One-year CDs are paying even better rates than the best high-yield savings accounts. But you still might prefer the latter for two reasons: You can deposit money at any time, and you can withdraw money without paying a penalty.
When trying to decide between CDs versus high-yield savings accounts, remember that both are great savings tools, so there's no reason you can't open both accounts to save for different goals.
1-Year CD vs. Money Market Account
A money market account is similar to a savings account, except it usually comes with some perks you'd get with a checking account, such as an ATM card, debit card, or paper checks. Basically, it makes it easier to access your money. The best money market accounts pay great rates, but they're still not as high as the best 1-year CD rates. A money market account could be a good fit if you want easier access to your savings, though, especially since CDs don't allow you to withdraw funds without paying a penalty.
1-Year CD FAQs
The highest 1-year CD rate today is from Credit Human Federal Credit Union, which offers 1-year CDs with 4.55% APY.
Generally, online banks and credit unions pay the best 1-year CD rates. It isn't always the same institutions that feature the most competitive rates, though.
Right now, you can generally expect 1-year CD rates to be higher than 2-year CD rates.
If you deposit $10,000 into a 1-year CD, some of the best CDs could earn around $460 in interest. You can also use a CD rate calculator to see how much interest you'll earn with a specific CD.
If you expect CD rates to drop, you might consider waiting to lock in a higher rate or building a CD ladder. Keep in mind experts recommend choosing a CD term that aligns with your goals so you can avoid making early withdrawal penalties.
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:
How can you be sure you're picking the right bank?
Tania Brown, CFP® professional and vice president of coaching strategy at OfColor, 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, banking editor for Business 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, CFP® professional 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: How We Chose the Best 1-Year CDs
Business Insider's personal finance team regularly monitors 1-year CD rates at over 60 banks, credit unions, and banking platforms. We monitor these CDs on a daily basis and update our list so you can be well-informed about the best 1-year CD rates today.
We are editorially independent, meaning that the business team does not dictate what we cover or write about. To understand how we cover and rate products, you can learn more about our editorial standards.
We review CDs using our bank account methodology. We rate bank accounts on a scale of one to five stars. A one-star rating is a low score that indicates the product needs significant improvement. A five-star rating is the highest rating possible. It shows that a product is a top-tier option for most people.
For each CD, we compared the minimum opening deposits, early withdrawal penalties, miscellaneous features, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, security, and ethics.
Each feature is scored from 0 to 5, although some features have a larger weight percentage than others. We add up these scores and calculate the weighted average to determine the account's total rating.