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Best 1-year CD rates of July 2021

Earn more interest with the highest 12-month CD rates.

The 11 best 1-year CD rates

Use the table to compare 1-year CDs by rates and minimum opening deposits. Want to compare features side-by-side? Click the Compare box next to your top choices to view multiple accounts at once.

Name Product 1-year APY Minimum deposit to open
Quontic Bank CD
0.6%
$500
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less
Discover CDs
0.5%
$2,500
Start saving with $2,500 and enjoy flexible terms from 3 months to 10 years with no account fees.
Limelight Bank CD
0.55%
$1,000
First National Bank of America Online CD
0.6%
$1,000
Marcus by Goldman Sachs High-yield CDs
0.55%
$500
Ally High Yield CDs
0.55%
$0.01
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Compare up to 4 providers

This article was reviewed by Marguerita Cheng, a member of the Finder Editorial Review Board and award-winning advocate for ethical financial planning for over 20 years.

A closer look at the best 1-year CD rates

Quontic Bank CD

Quontic Bank CD logo
Apply now
at Quontic Bank's secure site
0.6%
1-year APY
1%
3-year APY
1.11%
5-year APY
$500
Min. opening deposit
  • High interest rate. Quontic Bank offers a solid 0.6% APY on its most popular one-year CD.
  • Low minimum deposit. While most CDs have opening deposits of $1,000 or more, you only need $500 to open.
  • Interest compounds daily. Your CD&rsquo
  • s interest compounds daily instead of monthly, so your money grows faster.
  • Severe early withdrawal penalties. Quontic Bank imposes a heavy penalty if you withdraw your principal before your CD matures. You&rsquo
  • ll pay one year&rsquo
  • s interest on a one-year CD, with the possibility of losing some of your deposit if the penalty is more than your earned interest.
  • No partial withdrawals. You can&rsquo
  • t withdraw some of your principal before your CD&rsquo
  • s term is up.
6-month term0.55%
12-month term0.6%
24-month term0.75%
60-month term1.11%

Discover CDs

Discover CDs logo
Apply now
at Discover's secure site
0.5%
1-year APY
0.55%
3-year APY
0.6%
5-year APY
$2,500
Min. opening deposit
  • No fees. Discover doesn&rsquo
  • t charge a fee to open or maintain a CD. The only fee you may see is for outgoing wire transfers.
  • Interest compounds daily. Your CD calculates your interest daily. You can choose to credit it to your account or transfer it to an eligible Discover bank account.
  • Low withdrawal fees. Compared to some competitors, Discover has kinder early withdrawal penalties. You&rsquo
  • ll pay 6 months of interest if you need your money earlier on a one-year CD.
  • High minimum deposit. You&rsquo
  • ll need to set aside at least $2,500 to open a Discover CD account.
  • No branches. Since Discover is a fully digital bank, you can&rsquo
  • t pop into a branch for questions or assistance with your CD.
  • No partial withdrawals. Discover doesn&rsquo
  • t allow partial withdrawals. If you need your money early, you&rsquo
  • ll need to take out the full amount, which is subject to an early withdrawal penalty.
3-month term0.2%
6-month term0.25%
9-month term0.3%
12-month term0.5%
18-month term0.5%
24-month term0.5%
30-month term0.55%
48-month term0.55%
60-month term0.6%
84-month term0.6%
120-month term0.6%

Limelight Bank CD

0.55%
1-year APY
0.75%
3-year APY
N/A
5-year APY
$1,000
Min. opening deposit
  • Eco-friendly initiatives. Limelight uses your funds to invest in solar energy initiatives, so your money is promoting green energy.
  • Multiple funding options. You can fund your CD account using an electronic funds transfer, wire transfer or check.
  • Low early withdrawal penalty. Compared to other one-year CDs that can charge up to one year&rsquo
  • s worth of interest as a withdrawal penalty, Limelight early withdrawal penalty is 90 days interest.
  • Limited customer service. To speak to a live customer service agent, you&rsquo
  • ll need to call 800-639-6015 weekdays from 8:30 a.m. to 5 p.m. MST. There are no live-chat or in-person support options.
6-month term0.5%
12-month term0.55%
18-month term0.65%

First National Bank of America Online CD

0.6%
1-year APY
0.8%
3-year APY
1.05%
5-year APY
$1,000
Min. opening deposit
  • Strong APY. At 0.6%, First National Bank of America offers a higher interest rate for its one-year CDs than many of its competitors.
  • Low withdrawal penalties. If you withdraw your money before the CD term is up, you&rsquo
  • ll pay 180 days of interest as an early withdrawal penalty.
  • Only one funding option. To open a CD account, you&rsquo
  • ll need to initiate an ACH transfer from a checking or savings account. Brokerage, annuity or other CD accounts are not eligible.
  • Limited branch locations. First National Bank of America only has three locations in Michigan for face-to-face support. You&rsquo
  • ll need to opt for help over the phone if you&rsquo
  • re not in the area.
12-month term0.6%
24-month term0.7%
48-month term0.9%
60-month term1.05%
72-month term1.1%
84-month term1.15%

Marcus by Goldman Sachs High-yield CDs

0.55%
1-year APY
0.55%
3-year APY
0.6%
5-year APY
$500
Min. opening deposit
  • 10-day CD rate guarantee. Your CD will automatically get a higher APY if CD rates increase within 10 days that you open and fund your account.
  • Monthly interest disbursement option. While most CDs automatically add your earned interest to your account, you can opt to transfer your monthly interest to an external bank account.
  • Low minimum deposit. Unlike CDs that have a minimum opening deposit of $1,000 or more, a Marcus CD requires $500.
  • High early withdrawal penalty. You&rsquo
  • ll pay 270 days interest on a one-year CD, which is on the higher end of withdrawal fees.
  • No partial withdrawals. You won&rsquo
  • t be able to access part of your money in your CD. If you initiate a withdrawal, you&rsquo
  • ll be subject to a penalty and Marcus by Goldman Sachs will close your CD account.
6-month term0.15%
9-month term0.25%
12-month term0.55%
18-month term0.55%
24-month term0.55%
48-month term0.55%
60-month term0.6%
72-month term0.6%

Ally High Yield CDs

0.55%
1-year APY
0.65%
3-year APY
0.85%
5-year APY
$0.01
Min. opening deposit
  • Daily compound interest. Ally compounds your interest daily, which means your money grows faster than CDs that compound monthly.
  • No minimum deposit. Fund your CD with whatever amount you&rsquo
  • re comfortable with.
  • Best rate guarantee. You&rsquo
  • ll get the best CD rate that Ally offers if you fund your account within 10 days of opening.
  • Loyalty reward. Ally offers an APY boost if you renew your CD with it.
  • Low early withdrawal penalty. If you withdraw from your CD early, you&rsquo
  • ll get hit with a penalty of 60 days of interest, which is the lowest we&rsquo
  • ve seen so far.
  • No partial withdrawals. You can&rsquo
  • t access a portion of the money in your CD. If you choose to withdraw funds before your CD matures, Ally will close your CD account.
  • Interest posted at maturity. Unlike some CDs that post your interest monthly, Ally credits your interest for one-year CDs at maturity.
3-month term0.2%
6-month term0.25%
9-month term0.3%
12-month term0.55%
18-month term0.6%
60-month term0.85%

First Internet Bank CDs

0.6%
1-year APY
0.81%
3-year APY
0.96%
5-year APY
$1,000
Min. opening deposit
  • Solid APY. First Internet Bank can hold its own against competitors with its 0.6% APY on a one-year CD.
  • No fees. There are no fees to open or maintain a First Internet Bank CD.
  • Withdraw interest. If you don&rsquo
  • t want your monthly earned interest credited to your account, you can withdraw it via a mailed check or pay $20 for a wire transfer.
  • No branches. First Internet Bank operates entirely online and doesn&rsquo
  • t offer in-person customer service.
  • Withdrawal fees. First Internet Bank doesn&rsquo
  • t have the lowest early withdrawal penalties we&rsquo
  • ve seen. Expect to pay 180 days interest to access your money before your CD&rsquo
  • s maturity date.
  • No partial withdrawals. First Internet Bank doesn&rsquo
  • t let you touch the CD principal unless you&rsquo
  • re ready to pay the early withdrawal and close the account.
3-month term0.25%
6-month term0.45%
12-month term0.6%
18-month term0.65%
24-month term0.7%
48-month term0.86%
60-month term0.96%

Rising Bank CDs

0.5%
1-year APY
0.6%
3-year APY
N/A
5-year APY
$1,000
Min. opening deposit
  • Competitive APY. At 0.5%, Rising Bank offers a strong interest rate for a short-term one-year CD.
  • Low early withdrawal penalty. With a fee of 90 days&rsquo
  • interest, Rising Bank&rsquo
  • s early withdrawal penalty is on the lower end of the industry.
  • Long compounding and crediting frequency. Unlike CDs that compound interest daily or monthly, your Rising Bank CD compounds and credits your interest every three months.
12-month term0.5%
24-month term0.55%

Synchrony Bank CDs

0.5%
1-year APY
0.7%
3-year APY
0.8%
5-year APY
$2,000
Min. opening deposit
  • No minimum deposit. Open a CD account with no minimum deposit or balance requirements.
  • 15-day best rate guarantee. Fund your account within 15 days, and if the interest rate is higher on the day you fund your account, Synchrony will give you the better APY.
  • Partial withdrawals. If you need your money early, you can withdraw funds from your principal. What you take out is subject to an early withdrawal penalty.
  • Low early withdrawal penalty. While some competitors impose early withdrawal penalties equivalent to 6 months to 1 year&rsquo
  • s worth of interest, Synchrony Bank charges 90 days of interest on the amount you withdraw before your CD is mature.
  • Withdraw interest. You can transfer earned interest to an eligible Synchrony account or an external bank account.
  • No in-person support. You can only live chat or call to get in touch with customer service.
3-month term0.15%
6-month term0.25%
9-month term0.35%
12-month term0.5%
13-month term0.6%
15-month term0.6%
18-month term0.6%
24-month term0.65%
48-month term0.7%
60-month term0.8%

Sallie Mae CD

0.6%
1-year APY
0.7%
3-year APY
0.45%
5-year APY
$2,500
Min. opening deposit
  • Competitive APY. Sallie Mae offers an impressive 0.6% APY on its 12-month CDs.
  • Interest compounds daily. Grow your investment faster with daily compounding interest.
  • Interest disbursements. You can request to withdraw your interest with no penalty.
  • Low early withdrawal fee. A 12-month CD has a penalty equal to 90 days of interest, which is lower than some of its competitors.
  • High minimum deposit. While many CDs require a $1,000 opening deposit, Sallie Mae requires $2,500t o open an account.
6-month term0.3%
9-month term0.3%
11-month term0.3%
12-month term0.6%
13-month term0.45%
15-month term0.45%
18-month term0.65%
24-month term0.6%
30-month term0.6%
60-month term0.45%

Hiway Federal Credit Union CD

Hiway Federal Credit Union CD logo
0.45%
1-year APY
0.75%
3-year APY
1.15%
5-year APY
$500
Min. opening deposit
  • Tiered interest. Earn 0.45% APY on balances between $500 and $9,999, 0.55% APY on balances between $10,000 and $24,999 and 0.65% APY on balances $25,000 and over.
  • Low minimum balance. Open a CD with $500
  • Low withdrawal penalty. A one-year CD has an early withdrawal penalty equal to 90 days of interest.
  • Interest compounded and credited quarterly. While some competitors compound and post your interest daily or monthly, Hiway Credit Union does this every three months.
  • Membership requirements. As with most credit unions, you&rsquo
  • ll need to qualify for membership before you can open an account. Hiway&rsquo
  • s membership eligibility generally extends to people who live, work, worship or attend school in select areas of Minnesota or if you&rsquo
  • re a member of the Association of the US Army (AUSA).
3-month term0.35%
6-month term0.25%
12-month term0.45%
48-month term1.1%
60-month term1.15%

The best 1-year CD rates lets you lock your money away for 12 months and earn interest. But most require a minimum opening deposit of $1,000. To help you sort through your options, we researched over 80 CDs and considered factors like interest rates, availability, fees and minimum deposit requirement to bring you the best 12-month CD rates.

What’s changed in 2021?
We removed the following seven CDs from our best list as their rates have dropped. The most significant drops include:

  • CIT Bank’s 1-year CD dropped from 0.3% to 0.25% APY
  • Alliant Credit Union’s 1-year CDd dropped from 0.5% to 0.3% APY
  • Barclays Online’s 1-year CD dropped from 0.3% to 0.25% APY
  • Citizens Access’ 1-year CD dropped from 0.6% to 0.1%
Quick summary of the best 1-year CD rates
  • Quontic Bank CD: 0.6%
  • Discover CDs: 0.5%
  • Limelight Bank CD: 0.55%
  • First National Bank of America Online CD: 0.6%
  • Marcus by Goldman Sachs High-yield CDs: 0.55%
  • Ally High Yield CDs: 0.55%
  • First Internet Bank CDs: 0.6%
  • Hiway Federal Credit Union CD: 0.45%
  • Rising Bank CDs: 0.5%
  • Synchrony Bank CDs: 0.5%
  • Sallie Mae CD: 0.6%

How do I find the best 1-year CD for me?

Here’s a few important factors to consider when you compare certificates of deposit:

  • The interest rate. The amount of interest applied to your CD will differ between various banks, and the difference can be substantial — shop around at a few different banks to find the best rate.
  • Interest payment frequency. With a one-year CD you could choose to have interest earned paid to you monthly, semi-annually or when it matures.
  • Few or no fees. With the exception of the penalty charge for an early withdrawal, there should be no other fees applied.
  • Minimum deposit requirement. CDs have balance requirements that differ depending on the financial institution. Some only cater to higher deposits of $5,000 or more, while other banks allow for an account with a minimum balance of just $500.

How much will I earn in a 1-year CD?

See how much interest you could earn over 12 months.

Which bank has the highest 1-year CD rate?

As of February 2021, Quontic Bank has one of the highest 12-month CD rates at 0.65% APY. You’ll need a minimum deposit of $500 to open the CD. But if you withdraw your money before it matures, you’ll pay a penalty equal to one years interest.

Pros and cons of a 1-year CD

There are several attractive reasons to open a 1-year CD, but there are also a few drawbacks to keep in mind.

Pros

  • No monthly fees. CDs are free to open and maintain, so you don’t have to worry about monthly fees eating into your savings.
  • Earns more interest than a savings account. A 12-month CD provides you with a competitive interest rate that’s often higher than a traditional savings account.
  • Flexibility. A 1-year CD term is long enough to lock in a high interest rate, but short enough to give you easy access to your money should you need it within the next year.

Cons

  • Can’t access funds until maturity. If you need to withdraw your savings in order to cover an emergency, you’ll generally pay an early withdrawal fee. This is true for any CD aside from no-penalty CDs.
  • Minimum deposit requirement. Many banks, particularly those with competitive interest rates, require you to have at least $500 to open an account, though some banks require up to $2,500.
  • Rates aren’t as high as long-term CDs. Generally, the longer your CD term, the higher the APY. Even though a 12-month CD is competitive, you could earn more with a 5-year CD.

1-year CD alternatives

If you like the idea of earning a high APY over a relatively short amount of time, but you don’t want to risk facing an early withdrawal penalty, here are three alternatives to consider.

  • Shorter-term CDs. Some banks and credit unions offer CDs with terms as short as one month. And while these CDs give you earlier access to your funds, the APYs are often significantly lower than certificates with longer terms.
  • High-yield savings accounts. CDs generally offer better interest rates than high-yield savings accounts, but CD rates have recently plummeted due to the pandemic. Now many savings accounts offer higher APYs without the requirement to keep your money locked away for a certain time.
  • No-penalty CDs. Although most banks will penalize you if you withdraw funds from your CD before its maturity date, this isn’t always the case. Several banks offer no-penalty CDs that give you access to your money at any time without assessing an early withdrawal fee.

Bottom line

If you’re looking for a secure way to store your money and earn interest over the course of a year, a CD is a useful savings option. However, if you want to add money to your account throughout the year or have access to it in case of an emergency, one of the best savings accounts on the market might be a better fit.

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