Compare the best 1-year CD rates

A 12-month CD locks your money away for one year and lets you calculate exactly how much interest your savings will earn. But you’ll pay a penalty if you need your money before the term is up. To help you decide if this account is right for you, we gathered the 14 best 1-year CD rates available today.

How did we choose the best 1-year CD rates?

Many financial institutions offer one-year CDs, but some accounts are a cut above the rest. We narrowed down our list by searching for accounts that make it easy to start saving and offer incentives to lock your money away. To do this, we considered key factors like interest rates, convenience, fees and minimum deposit requirements.

What’s changed in 2020?

Interest rates dropped significantly in 2020 due to the coronavirus pandemic, so we adjusted our top 14 list to showcase one-year CDs that still have competitive APYs. With this list, you can easily compare APYs and minimum deposit requirements all in one place.

Compare the 14 best 1-year CD rates

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

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

See how much interest you could earn over 12 months.

How do I find the best 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 the account matures.
• Few or no fees. With the exception of the penalty charge for an early withdrawal, there should be no other fees applied.
• Minimum balance 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 $1,000.

Pros and cons of a 1-year CD

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.

Frequently asked questions

• What is a CD?

  A certificate of deposit, or CD, is an account where you deposit a certain amount of money for an agreed period of time and earn a fixed rate of interest. You can choose how long you want to lock your money away, from as little as one month to five years. If you do need to access your money before the term ends (known as maturity), you’ll likely need to pay a penalty.

• How do I earn interest with a CD?

  With a certificate of deposit, you earn a fixed interest rate for a fixed period of time. For example, if you opt for a 12-month CD, you lock your money away for one year. In return, your bank awards you with a competitive interest rate that’s traditionally higher than a savings account. You can elect to receive interest payments monthly or all at once after your CD reaches maturity.

• Will I be able to choose when the interest is paid into my account?

  In most cases, yes — with longer CDs you are able to choose between monthly, biannual or annual interest payments.

• Do I have to visit a branch to set one up?

  You can, but you don’t have to — a large number of financial institutions offer online CDs.

• Can I have the interest payments made into another account?

  Yes, some banks will allow you to have the interest paid into your checking account.

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