Rates on 1-year CDs are sky-high, even with all the talk of potential Fed rate cuts later this year—some offering annual percentage yield (APYs) of over 5%. And while a CD requires you to commit money for one full year, many have low to no investment minimums. Whatever you’re comfortable committing, you can start earning some of the best CD rates available in years.
Best 1-year CD rates of December 3, 2024
*APYs are current as of December 3, 2024 and are subject to change. Read our complete methodology here.
SPONSORED PARTNERS
 Discover |  Barclays |  Marcus by Goldman Sachs |
|---|---|---|
| Minimum opening despoit | Minimum opening despoit | Minimum opening despoit |
| $0 | $0 | $500 |
| APY on a 1-year CD | APY on a 1-year CD | APY on a 1-year CD |
| 4.10% | 4.25% | 4.10% |
| Range of terms | Range of terms | Range of terms |
| 3 months - 10 years | 3 months - 5 years | 6 months - 6 years |
| View offer at Discover | View offer at Barclays | View offer at Bankrate |
Find the best CD for you
Use the widget below to find the CDs with the best rates in your area.
The best 1-year CD rates: editors' picks*
While the banks above may be offering excellent rates, our team may not have vetted the institutions or their products. In contrast, we’ve conducted extensive research on the banks below and ranked them based on overall rates, minimum deposit requirements, and the ability to open and manage the account from anywhere.
*APYs are updated daily but are subject to change.
| Institution | APY | Minimum deposit | See details |
|---|---|---|---|
| Featured partner Alliant Credit Union | 4.10% | $1,000 | View offer at Alliant |
| Quontic Bank | 4.00% | $500 | View offer at Bankrate |
| First Internet Bank | 4.42% | $1,000 | View offer at Bankrate |
| Prime Alliance Bank | 4.50% | $500 | View offer at Bankrate |
| MYSB Direct | 4.25% | $500 | View offer at Bankrate |
| TAB Bank | 4.25% | $1,000 | View offer at Bankrate |
| Ally Bank | 4.00% | $0 | View offer at Bankrate |
| Capital One 360 | 4.00% | $0 | View offer at Bankrate |
| Newtek Bank | 4.55% | $2,500 | Learn more |
| First National Bank of America | 4.26% | $1,000 | Learn more |
| Best 1-year CDs: Our top picks | |||
|---|---|---|---|
| Featured partner Alliant Credit Union | View offer at Alliant | ||
| APY | 4.10% | ||
| Minimum deposit | $1,000 | ||
| Quontic Bank | View offer at Bankrate | ||
| APY | 4.00% | ||
| Minimum deposit | $500 | ||
| First Internet Bank | View offer at Bankrate | ||
| APY | 4.42% | ||
| Minimum deposit | $1,000 | ||
| Prime Alliance Bank | View offer at Bankrate | ||
| APY | 4.50% | ||
| Minimum deposit | $500 | ||
| MYSB Direct | View offer at Bankrate | ||
| APY | 4.25% | ||
| Minimum deposit | $500 | ||
| TAB Bank | View offer at Bankrate | ||
| APY | 4.25% | ||
| Minimum deposit | $1,000 | ||
| Ally Bank | View offer at Bankrate | ||
| APY | 4.00% | ||
| Minimum deposit | $0 | ||
| Capital One 360 | View offer at Bankrate | ||
| APY | 4.00% | ||
| Minimum deposit | $0 | ||
| Newtek Bank | Learn more | ||
| APY | 4.55% | ||
| Minimum deposit | $2,500 | ||
| First National Bank of America | Learn more | ||
| APY | 4.26% | ||
| Minimum deposit | $1,000 | ||
Alliant Credit Union 1-year CD
| APY | 4.10% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Number of days the certificate is open, up to 90 days’ interest |
at Alliant
at Alliant
Why we picked Alliant Credit Union's 1-year CD
Alliant offers one of the highest APYs on our list at4.10%, and dividends compound monthly. As a digital credit union, if you choose Alliant as your financial home, you won’t have access to physical branch locations. You will, however, be able to contact customer service via email, chat, or phone.
Learn more: Read our Alliant Credit Union review.
Quontic Bank 1-year CD
| APY | 4.00% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | Equal to the interest for the entire length of the stated term |
at Quontic
at Quontic
Why we picked Quontic's 1-year CD
Quontic’s 1-year CD made our list because it had one of the highest APYs of the banks we evaluated. Plus, it has a modest opening deposit requirement and interest that compounds daily.
Learn more: Read our Quontic Bank review
First Internet Bank 1-year CD
| APY | 4.42% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 180 days’ interest |
at Bankrate
at Bankrate
Why we picked First Internet Bank's 1-year CD
With a 4.42% APY, First Internet Bank’s 1-year CD offers one of the best rates around. Keep in mind that to open an account, you’ll need at least $1,000, which could be steep for those who don’t have a lot saved.
Learn more: Read our First Internet Bank review
Prime Alliance Bank 1-year CD
| Key numbers | |
|---|---|
| APY | 4.50% |
| Minimum opening deposit | $500 |
| Early withdrawal penalty | 30 days’ interest |
at Bankrate
at Bankrate
Why we picked Prime Alliance Bank's 1-year CD
Whether you want to invest your money for 6 months or 5 years, Prime Alliance has you covered. Currently, you can get a 4.50 % APY on a 12-month CD. That means if you invested just $5,000 in a 12-month CD, you would earn $247.50 in a year.
Learn more: Read our Prime Alliance Bank review
MYSB Direct 1-year CD
| Minimum Deposit | $500 |
| APY | 4.25% |
| Early withdrawal penalty | All interest earned |
at Bankrate
at Bankrate
Why we picked MYSB Direct's 1-year CD
MYSB Direct is the online-only banking division of New York-based M.Y. Safra Bank. Its 1-year CD comes with a competitive 4.25% APY and modest opening deposit requirement of $500. However, customers who need to withdraw their funds early could be subject to a hefty early withdrawal penalty of all interest earned.
Learn more: Read our MYSB Direct review.
TAB Bank 1-year CD
| Key numbers | |
|---|---|
| APY | 4.25% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | 90 days’ interest |
at Bankrate
at Bankrate
Why we picked TAB Bank's 1-year CD
While you’ll need to have a bit of a nest egg built up to invest in a TAB Bank CD, you can receive a whopping 4.25% APY on a 1-year CD.
For customer service you can reach out via phone call (6 a.m. to 7 p.m. MT Monday through Friday and 9 a.m. to 3 p.m. on Saturday) or a secure form on their site.
Learn more: Read our TAB Bank review
Ally Bank 1-year CD
| Key numbers | |
|---|---|
| APY | 4.00% |
| Minimum opening deposit | $0 |
| Early withdrawal penalty | 150 days’ interest |
at Bankrate
at Bankrate
Why we picked Ally Bank's 1-year CD
Ally’s 1-year CD rate is 4.20%, which is high but still not the best rate on our list. So why is it in our top 10? Well, it has a $0 minimum deposit, which allows new savers to lock in a great rate for the long haul.
Bonus: Ally Bank offers customers 24/7 phone, chat, and email support.
Learn more: Read our Ally Bank review
Capital One 360 1-year CD
| APY | |
| Early withdrawal penalty | 3 months of interest |
Why we picked Capital One 360's 1-year CD
With Capital One 360 CDs, there’s no minimum opening deposit, so you can score a solid APY regardless of how much you have to save. The 1-year CD offers a solid 4.00% APY. Plus, if you choose to tap your money early, you’ll only give up three months of interest, which is a modest penalty compared to some other banks on our list.
Learn more: Read our Capital One 360 review
Newtek Bank 1-year CD
| APY | 4.55% |
| Minimum opening deposit | $2,500 |
| Early withdrawal penalty | 180 days’ of interest |
Why we picked Newtek Bank's 1-year CD
While Newtek Bank had one of the highest minimum opening deposits, clocking in at $2,500, it may be worth the investment. Their 1-year CD boasts a 4.55% APY. However, if you need your money before the CD matures, you’ll have to give up around six months’ of interest.
Learn more: Read our Newtek Bank review
First National Bank of America 1-year CD
| APY | 4.26% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 180 days’ interest |
We we picked First National Bank of America's 1-year CD
Though First National Bank of America’s minimum opening deposit requirement may be steep for some, it provides a generous 4.26% APY.
The early withdrawal penalties on FNBA’s CDs are pretty hefty, though, so if you opt for this CD, make sure you’re comfortable locking up your funds. Customers can opt for a partial withdrawal of their funds—though this could mean incurring an early withdrawal penalty and missing out on some compound interest.
Customer service is available via phone or through their online form.
Learn more: Read our FNBA review
What is a 1-year CD?
Banks and credit unions typically offer a wide range of CD terms. One-year CDs require account holders to deposit their money in one lump sum and leave their funds untouched for 12 months. After that, the CD officially reaches maturity, and the account holder can withdraw funds, plus any interest accrued, or roll over those funds into a new CD.
CDs with shorter terms of one year can be a flexible option for savers who are not playing the long game and don’t want to tie up their funds for years.
1-year CD calculator: how to determine your earnings potential
To calculate your earnings from a CD, you’ll need to use the following formula: P(1+R/N)(NT) = A. Where “A” represents the value of your CD, including interest. "P" is equal to your principal balance or initial deposit. "R" represents your yearly interest rate―in this case, it would be your APY. "N" represents the compound frequency of your CD in a given year, and "T" represents the number of years until your CD’s maturity date.
Here’s an example:
- Initial deposit “P” = $1,000
- APY “R” = 5.00%
- Monthly compound frequency “N” = 12
- Number of years until maturity “T” = 1
Our equation would turn out like this:
1,000 x ((1+(5.00/12)) x (12 x 1)) = $1,050.00
So, if you deposit $1,000 into a 12-month CD with an interest rate of 5.00% that compounds monthly, you could expect to withdraw $1,050 at the end of the term.
Best CD rates for other terms
A one-year CD offers a great mix of higher rates with a shorter term. However, you might want to consider other CD term lengths, depending on your savings goals.
More CDs to consider:
Best CD rates for other terms
Our methodology
The Fortune RecommendsTM team partnered with industry leader Curinos to track the top CD rates from around the country. For our editors' picks, we compared one-year certificates of deposit (CDs) from more than 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you live.
The rates, fees, and minimum deposit requirements for CDs are available for a limited time, and APYs are subject to fluctuation, which could impact how much interest you earn. All the banks and credit unions on this list are insured by the FDIC and NCUA, respectively. Should you choose to terminate your CD before it matures, you could be subject to a penalty, which varies by bank.
Dig deeper: learn more about our banking methodology.
