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Savers willing to temporarily stash their cash can reap solid rewards in this unique savings environment where one-year CD rates often yield more than longer terms.

Annual percentage yields (APYs) and account details are accurate as of June 27, 2024.

Summary of top 1-year CD rates

INSTITUTIONCD NAME1- YEAR CD APYMIN. DEPOSIT
LendingClub certificates of depositLendingClub certificates of deposit4.20%$2,500
INSTITUTIONLendingClub certificates of deposit
CD NAMELendingClub certificates of deposit
1- YEAR CD APY4.20%
MIN. DEPOSIT$2,500
Bread Savings certificates of depositBread Savings certificates of deposit5.25%$1,500
INSTITUTIONBread Savings certificates of deposit
CD NAMEBread Savings certificates of deposit
1- YEAR CD APY5.25%
MIN. DEPOSIT$1,500
Quontic Bank certificates of depositQuontic Bank certificates of deposit4.50%$500
INSTITUTIONQuontic Bank certificates of deposit
CD NAMEQuontic Bank certificates of deposit
1- YEAR CD APY4.50%
MIN. DEPOSIT$500
First Internet Bank certificates of depositFirst Internet Bank certificates of deposit5.26%$1,000
INSTITUTIONFirst Internet Bank certificates of deposit
CD NAMEFirst Internet Bank certificates of deposit
1- YEAR CD APY5.26%
MIN. DEPOSIT$1,000
Barclays Online certificates of depositBarclays Online certificates of deposit5.00%$0
INSTITUTIONBarclays Online certificates of deposit
CD NAMEBarclays Online certificates of deposit
1- YEAR CD APY5.00%
MIN. DEPOSIT$0
Popular Direct certificates of depositPopular Direct certificates of deposit5.30%$10,000
INSTITUTIONPopular Direct certificates of deposit
CD NAMEPopular Direct certificates of deposit
1- YEAR CD APY5.30%
MIN. DEPOSIT$10,000
Synchrony Bank certificates of depositSynchrony Bank certificates of deposit4.80%$0
INSTITUTIONSynchrony Bank certificates of deposit
CD NAMESynchrony Bank certificates of deposit
1- YEAR CD APY4.80%
MIN. DEPOSIT$0
CommunityWide Federal Credit Union CW certificate accountCommunityWide Federal Credit Union CW certificate account5.15%$1,000
INSTITUTIONCommunityWide Federal Credit Union CW certificate account
CD NAMECommunityWide Federal Credit Union CW certificate account
1- YEAR CD APY5.15%
MIN. DEPOSIT$1,000
USAlliance Federal Credit Union certificate accountsUSAlliance Federal Credit Union certificate accounts5.15%$500
INSTITUTIONUSAlliance Federal Credit Union certificate accounts
CD NAMEUSAlliance Federal Credit Union certificate accounts
1- YEAR CD APY5.15%
MIN. DEPOSIT$500
Service Federal Credit Union share certificateService Federal Credit Union share certificate5.00%$500
INSTITUTIONService Federal Credit Union share certificate
CD NAMEService Federal Credit Union share certificate
1- YEAR CD APY5.00%
MIN. DEPOSIT$500

Why trust our banking experts

Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.

  • 140 CDs from 84+ financial institutions reviewed.
  • 4 levels of fact checking.
  • 50+ data points analyzed.

LendingClub certificates of deposit

LendingClub certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 12 month
4.20%
Minimum deposit requirement
$2,500
What should you know
If you can swing a minimum of $2,500, then tucking away your funds here will net you an attractive 4.20% yield. And if something unexpected happens, the early withdrawal penalty is rather lientent: only 90 days’ worth of simple interest. Pros:
  • Competitive yield.
  • No monthly maintenance fees.
  • Relatively low early withdrawal fee.
Cons:
  • Monthly compounding schedule instead of daily. 
  • No physical branches.

Bread Savings certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Learn More
On Fiona’s website
CD APY 12 month
5.25%
Minimum deposit requirement
$1,500
What should you know
When you put your dough into a one-year Bread Savings CD, you’ll earn a very competitive 5.25% APY, which is compounded daily so your savings rise even more quickly. A minimum deposit of $1,500 is manageable and there are no monthly maintenance fees, either. An early withdrawal from a one-year CD, however, results in a penalty of 180 days’ worth of interest, which is the industry norm. Pros:
  • Highly competitive yields.
  • High Apple App Store rating.
  • Daily compounding interest.
Cons:
  • $25 outgoing wire transfer fee.
  • $15 check request fee.
 

Quontic Bank certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Learn More
On Quontic Bank’s Website
CD APY 12 month
4.50%
Minimum deposit requirement
$500
What should you know
Quontic Bank’s one-year CD offers a lower barrier to entry with a minimum deposit requirement of only $500. The CD compounds daily, but the steep early withdrawal penalty is equal to one year’s worth of interest. If you have any doubts about leaving your funds locked up for a year, this isn’t the best choice. Pros:
  • Competitive yields.
  • Low minimum balance requirement.
  • Interest compounded daily, credited to account monthly.
Cons:
  • Steep early withdrawal penalty.
  • No cash deposit option.

First Internet Bank certificates of deposit

First Internet Bank certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 12 month
5.26%
Minimum deposit requirement
$1,000
What should you know
As a saver with this online bank, you’ll earn a competitive 5.26% APY and you won’t have to deal with any monthly maintenance fees. The minimum deposit requirement of $1,000 won’t be distressing for most savers and, while there aren’t any physical branches, you can manage your CD with the bank’s highly-rated mobile app. If you need to make an early withdrawal, expect a penalty equal to 180 days’ worth of interest. Pros:
  • High APYs.
  • Affordable minimum balance requirement.
  • Well-rated mobile app.
Cons:
  • Early withdrawal penalty.
  • No physical branches.

Barclays Online certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Learn More
On Barclays’ website
CD APY 12 month
5.00%
Minimum deposit requirement
$0
What should you know
Savers who are just getting started will appreciate the $0 minimum deposit requirement, a lack of monthly fees and the fact that the early withdrawal penalty is half of what most other CD providers typically charge, at only 90 days of interest. This can help you begin your savings journey with whatever you have available and not stress too much. If you’re investing in multiple CDs, the lack of a minimum also lets you fully customize how much you invest in each. The high app ratings are a draw too. Pros:
  • Strong yields.
  • $0 minimum deposit requirement.
  • Interest compounds daily.
Cons:
  • No U.S. branches.
  • Cash deposits accepted by only some ATMs.

Synchrony Bank certificates of deposit

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Learn More
On Fiona’s website
CD APY 12 month
4.80%
Minimum deposit requirement
$0
What should you know
Synchrony’s 1-year CD has no minimum deposit requirement, an important feature if you’re just starting to build your nest egg. You’ll earn a 4.80% yield, which you’re guaranteed to receive as long as you fund your CD within 15 days of opening the account. If Synchrony raises its rates within those 15 days, however, you’ll automatically get the higher rate. Pulling out your funds early will result in an early withdrawal penalty equal to 90 days of simple interest. Pros:
  • Interest compounds daily.
  • No minimum balance requirement.
  • Reasonable early withdrawal penalty.
Cons:
  • No physical locations.
  • Not the highest yield on the market.

CommunityWide Federal Credit Union CW certificate account

CommunityWide Federal Credit Union CW certificate account
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 12 month
5.15%
Minimum deposit requirement
$1,000
What should you know
CommunityWide’s one-year certificate offers an attractive yield of 5.15%. A pro is that the certificate doesn’t automatically renew, which is helpful for savers who may hit the snooze button on maturity reminders. The downside is that the withdrawal penalty, however, has the potential to be steep. It’s equal to the interest for the remaining days in the term at twice the listed APR. You can join the credit union by donating $5 to one of its listed charities. Pros:
  • Attractive APYs.
  • No automatic renewal.
  • Easy membership requirement.
Cons:
  • Potentially steep withdrawal penalty.
  • Lack of national branches.

USAlliance Federal Credit Union certificate accounts

USAlliance Federal Credit Union certificate accounts
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 12 month
5.15%
Minimum deposit requirement
$500
What should you know
USAAlliance Financial offers a 12-month CD with a yield of 5.15% and a minimum deposit requirement of $500, both very competitive amongst our winners. You’ll have to gain membership to enroll, which you can do by joining the outdoor recreational charity TreadLightly for $25. Pros:
  • Competitive yields. 
  • Dividends compound daily; credited monthly.
  • Well-rated mobile app. 
Cons:
  • Membership required.

Service Federal Credit Union share certificate

Service Federal Credit Union share certificate
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 12 month
5.00%
Minimum deposit requirement
$500
What should you know
Service Credit Union makes it easy for prospective savers to join for free via membership with the American Consumer Council. Savers who want to set aside at least $500 in a certificate will enjoy the 5.00% yield. Pros:
  • Strong yields.
  • Network of physical branches.
Cons:
  • Monthly compounding.

National average interest rate for CDs

Several factors influence CD rates, including the federal fund rate set by the U.S. Federal Reserve and the type and length of the CD. 

“Generally, longer-term CDs have higher rates to compensate investors for tying their funds up longer,” said Seth Mullikin, a CFP at Lattice Financial in Charlotte.

Yet the Federal Reserve’s increase of short-term rates in a bid to fight inflation has turned this on its head a bit. Here are the rates as of June 17, 2024 according to the Federal Deposit Insurance Corporation (FDIC).

CD TERMNATIONAL DEPOSIT RATE
1 month CD
0.23%
3 month CD
1.53%
6 month CD
1.81%
12 month CD
1.86%
24 month CD
1.57%
36 month CD
1.44%
48 month CD
1.36%
60 month CD
1.43%

Are 1-year CD rates going up?

Although rates haven’t fallen, they’re no longer climbing.

CD rates typically follow the rise and fall of the federal funds rate, which the Federal Reserve has held steady since July 2023. 

The federal funds rate largely determines the interest financial institutions charge for lending products and the yields they offer on deposit accounts such as CDs. As rates spike, consumers face higher borrowing costs but see a boost in their deposit earnings. 

While Wall Street speculates that the Fed will cut rates later this year, here are the size and date of the recent rate increases.

FOMC MEETING DATERATE CHANGE (BPS)FEDERAL FUNDS RATE
March 17, 2022
+25
0.25% to 0.50%
May 5, 2022
+50
0.75% to 1.00%
June 16, 2022
+75
1.5% to 1.75%
July 27, 2022
+75
2.25% to 2.5%
Sept 21, 2022
+75
3.00% to 3.25%
Nov. 2, 2022
+75
3.75% to 4.00%
Dec. 14, 2022
+50
4.25% to 4.50%
Feb. 1, 2023
+25
4.50% to 4.75%
March 22, 2023
+25
4.75% to 5.00%
May 3, 2023
+25
5.00% to 5.25%
July 26, 2023
+25
5.25% to 5.50%

When is a 1-year CD a good idea?

CDs are a great way to safely earn interest on money you aren’t actively using. 

“CDs can be a good place to invest cash for individuals who are saving for short-term goals,” said Desiree Kaul of Plancorp Wealth Management in Satellite Beach, Fla. If you’re saving up for a car or a vacation, a CD may be ideal. 

Quick tip: If you’re waffling between different CD terms, you could create a CD ladder so you take advantage of multiple maturities.

CDs have limitations, however. You can’t typically add to traditional CDs (so you can’t earn interest on new funds without opening a new CD) and early withdrawal penalties can be steep — you likely can’t make a withdrawal without paying a fee in the case of an emergency. 

CDs aren’t a good idea for general or emergency savings.

Opening a 1-year CD vs high-yield savings account 

While CDs tend to earn higher yields than savings accounts, these increased earnings come with a tradeoff: little flexibility. 

In contrast, high-yield savings accounts are highly accessible. You can add to and withdraw from them at any time, making them a perfect place to store emergency savings and build up your general savings before you get a CD. 

Quick tip: Money market accounts are a competitive option to a regular savings account as they typically provide high yields plus debit card access.

The financial rule of thumb is to have three- to six-months-worth of essential expenses in a savings account so you’re able to support yourself and your family in case you lose your job or a disaster strikes. Once you have that, CDs are a great way to expand your deposits. 

Pros and cons of 1-year CDs

Every financial product has advantages and disadvantages. Below is a look at both sides of a one-year CD. 

Pros

  • Competitive yields. One-year CDs typically boast higher interest rates than savings accounts and shorter-term CDs, such as those with a three-month or six-month term. 
  • Locked-in savings. The interest rate is guaranteed and giving up access makes you less likely to spend the funds. 
  • Deposit insurance. Investing in CDs doesn’t expose your savings to the risks of Wall Street. If your CD provider is insured, your funds are protected up to at least $250,000. 

Cons

  • Interest rates could rise. If rates go up during your CD term, you’ll miss the chance to enjoy the higher yield. 
  • Early withdrawal penalties. Withdrawing funds early will likely trigger a penalty, which can eat into your returns and, in some cases, even diminish your principal.
  • No principal increase. You can’t grow your CD by adding more to it during its term (unless it’s an add-on CD, which typically offers lower rates).

Finding the best 1-year CD rates

When it comes to finding the best one-year CD rates, the first step is to get clear on your parameters. Three things you should consider are:

  • Time. Finding the best one-year CD won’t help if you need the funds within six months. Make sure you can part with your funds for the full year. 
  • Amount. Determining how much you want to save can help you scope out CDs with minimum deposit requirements that suit your needs. If you want to tuck away $500, that would eliminate CD providers that require higher minimum deposits. 
  • Institution. Are you okay going with a credit union or do you want to stick with a bigger bank?

Once you know what you’re looking for, shop around. Comparison shopping is the best way to find the most attractive rate for your situation.

Learn more: Use our CD calculator to add up your cash earnings.

How to open a 1-year CD

1. Chose a CD provider

Research the best CD rates and pick the bank or credit union you want that offers the highest rate you can get. 

As you look at the best rates, you’ll find that many of the big, brick-and-mortar banks don’t offer the most competitive yields. But they can offer great convenience, especially if you’re already a customer. 

To help you if that’s the case, we reviewed CD rates for some of the largest banks in the nation:

2. Set up an account

Even if you’re already a customer of the CD provider you choose, you’ll need to set up your CD account by logging in and clicking the appropriate buttons.

If you’re becoming a customer or a member with this institution for the first time, you’ll need to provide some personal information, including your name, date of birth, contact information and government ID number, such as your Social Security number or Taxpayer Identification number. 

You’ll also likely be asked to choose how and when you want the interest that your CD earns. Many institutions give you the option of receiving the interest monthly, quarterly or at the end of the term when the CD matures.

Quick tip: To get the most money out of your CD, only withdraw interest upon its maturity.

3. Transfer funds

To fully open a CD, you need to put money in it. You’ll have to meet any required minimum deposit amount, which commonly ranges from $500 to $2,000 but can be as low as “none” and as high as $100,000 for jumbo CDs.

4. Sign paperwork 

With the money ready to go, the last thing to do is to sign paperwork agreeing to terms and conditions. The contract will outlay the relationship between you and the bank and state the yield your deposit will earn. 

Consider alternative CD terms

When looking for a one-year CD, don’t completely discount other terms. With CD rates up across the board, other CDs can be great, low-risk investments. 

Even if a longer-term vehicle has a slightly lower APY, you would earn more in interest over time. 

For example, $5,000 invested in a one-year CD with 4% APY would earn more than $200. A two-year CD with 3.80% APY would earn nearly $400.

Learn more: See our picks for the best two-year CDs.

Why you should pay attention to odd terms

Providers sometimes run specials on CDs with unusual terms, such as 10, 11,13 and 14 months. By going a month or two over or under the norm, you could get a higher APY. 

If you have a cut-off date for when you need your cash, keep in mind that you could string together shorter-term CDs and still meet the deadline, such as two sequential six-month CDs or, for the long-term saver, two five-year CDs.

Short-term vs. long-term: Which is right for you?

Since early withdrawal penalties are often on the table, it’s important to determine which CD term best suits your needs. 

Start by considering your cash situation, specifically your emergency fund. If you don’t have an emergency fund to cover at least a few months of expenses, you might not be ready for a CD. 

Next, consider your future spending goals. If you identify spending plans that require funds in the near future, a short-term CD is the right fit. But if you aren’t planning to spend the funds for many years, a longer-term CD might work. 

For instance, if you plan to tackle a home renovation project six months from now, a short-term CD could help you grow your cash without exposing it to market risks. But if you are saving for a home down payment many years in the future, a long-term CD may better suit your needs.

Methodology

We evaluated more than 140 CDs offered by 84 financial institutions to create a star rating for each. An institution with a perfect score of 100 would get five stars. One with a score of 80 would get four stars and so on. Here are the categories we analyzed and how we weighted each:

  • APY: 80%.
  • Compound interest schedule: 5%.
  • Customer experience: 5%.
  • Digital experience: 5%.
  • Minimum deposit: 3%.
  • Availability: 2%.

The yield is the most important category. A bank can offer the best customer service in the world, but you’ll have trouble meeting your financial objectives if they don’t provide competitive rates. That’s why we tilted our methodology so heavily towards interest and considered how frequently the rate compounded, valuing daily compounding interest schedules over monthly.

Non-APY factors still played a part. To round out the score, we took into account customer experience, digital experience, minimum deposits and availability (think credit unions with an open versus limited membership).

We monitor over 80 financial institutions, including Bank of America, Capital One, Chase, Colorado Federal Savings Bank, Discover® Bank, EverBank, Marcus by Goldman Sachs, PenFed, TD Bank and Wells Fargo.

Frequently asked questions (FAQ)

A higher CD rate is always better. As of June 17, 2024, the national average yield on a one-year CD is 1.86%. However, top-of-the-market rates are much higher.

No one knows what CD APYs will look like in six months for sure. But choosing a six-month CD gives you more flexibility. When it matures in half a year, you can move your funds into another CD with a higher rate, if rates have gone up, or you could invest it completely differently.

Almost everyone should have a savings account. When something happens, like if you break an arm or need new tires, you can cover the costs from your savings without getting a loan. If you want to get a CD in addition to a savings account, that’s great.

The right choice between a CD and an investment account varies based on your spending goals. If you plan to use the funds in the next two or three years, a CD gives you access to locked-in returns. CDs may also be a good fit for risk-averse investors. But if you don’t plan to use the funds until over a decade from now, then opting for an investment account tends to offer you products that may provide better long-term return expectations, like mutual funds.

The money you earn on a CD counts as taxable income in most situations. 

“CDs are taxed at both the state and federal levels,” said Mullikin. 

If you earn more than $10 in CD interest, you should receive a tax document from your CD provider, either Form 1099-INT or Form 1099-OID. Whether you receive the forms or not, you are still responsible for reporting all taxable income, otherwise you risk paying backup withholding and a penalty.

However, if your CDs are part of your individual retirement account (IRA), then your taxes will be different. “You can have a CD in an IRA, traditional or Roth — then the rules are based on IRA taxes,” said Nicholas Bunio, CFP in Berwyn, Pa.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Sarah Sharkey

BLUEPRINT

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make savvy financial decisions. She covered mortgages, insurance, money management, and more. She lives in Florida with her husband and dogs. When she's not writing, she's outside exploring the coast.

Jenn Jones

BLUEPRINT

Jenn Jones is the deputy editor for banking at USA TODAY Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.