Who has the highest 12 month CD rate?

Top banks offering 1-year CD rates for December 2022

Rating: 4.6 stars out of 5

4.6

Overview

First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. It launched in 1999 and its products are available in all 50 states.

First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.

Loan

$1,000 minimum deposit to open

Rating: 3.4 stars out of 5

3.4

Overview

Popular Direct offers term certificates of deposit and a savings account. CDs have a $10,000 minimum deposit requirement, and the Ultimate Savings account requires a $5,000 minimum deposit.

All Popular Direct deposit accounts are opened through Popular Bank.

Loan

$10,000 minimum deposit to open

Rating: 3.4 stars out of 5

3.4

Overview

BMO Harris is a regional bank that also offers online accounts. It’s based in Chicago and has more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

BMO Harris offers CDs with terms ranging from one month to five years, each requiring a minimum $1,000 opening deposit.

*APY is unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

Loan

$1,000 minimum deposit to open

Rating: 4.1 stars out of 5

4.1

Overview

Bread Savings, formerly Comenity Direct, is an online bank that offers a high-yield savings account and five terms of CDs ranging from one year to five years.

Bread Savings is part of Comenity Capital Bank, which is a unit of Bread Financial.

Loan

$1,500 minimum deposit to open

Rating: 4.2 stars out of 5

4.2

Overview

Live Oak Bank offers seven terms of CDs, from six months to five years. All CDs have a $2,500 minimum deposit requirement.

Live Oak Bank also offers an online savings account, which doesn’t have a minimum balance requirement.

Loan

$2,500 minimum deposit to open

Rating: 4.3 stars out of 5

4.3

Overview

Synchrony Bank has 12 terms of CDs, ranging from three months to five years.

Synchrony Bank’s high-yield savings account and money market account also don’t require a minimum balance.

Loan

$0 minimum deposit to open

Rating: 4.2 stars out of 5

4.2

Overview

Marcus is the online-banking unit of Goldman Sachs geared to consumers. Marcus offers nine terms of CDs, three no-penalty CD terms and a savings account.

Marcus CDs require a $500 minimum to open, but its savings accounts have no minimum-deposit requirement.

Loan

$500 minimum deposit to open

Rating: 2.7 stars out of 5

2.7

Overview

Limelight Bank is a division of Capital Community Bank, with headquarters in Provo, Utah. Limelight Bank calls itself a conscientious bank that ties its business to eco-friendly initiatives. Savings deposits at Limelight Bank turn into loans for solar projects, according to its website.

Limelight Bank only offers CDs on its website.

Loan

$1,000 minimum deposit to open

Rating: 4.5 stars out of 5

4.5

Overview

Sallie Mae Bank offers CDs, a savings account, money market account, credit cards and private student loans.

Sallie Mae Bank offers a competitive yield on all of its deposit products.

Loan

$2,500 minimum deposit to open

Rating: 4.9 stars out of 5

4.9

Overview

Capital One is based in McLean, Virginia, and has a brick-and-mortar presence and is also an online bank. It offers nine terms of regular CDs.

Capital One’s CDs and its 360 Performance Savings account have no minimum balance requirements.

Loan

$0 minimum deposit to open

Citibank: 4.15% APY, $500 minimum opening deposit

Rating: 4.6 stars out of 5

4.6

Overview

Citibank is one of the largest banks in the U.S. It offers fixed-rate CDs, a step-up CD and a no-penalty CD. 

Citi CD minimum deposits may vary based on your location. The minimum is $1,000 in California and Nevada, $2,500 in Florida, Maryland, Washington, D.C., and Virginia and $500 in all other markets. 

Citi also has a savings account with a competitive yield. But that account, the Citi Accelerate Savings, is only available in certain markets.

Loan

$500 minimum deposit to open

TIAA Bank: 4.15% APY, $1,000 minimum deposit

Rating: 4.8 stars out of 5

4.8

Overview

TIAA Bank has nine financial centers, all located in Florida. Besides its Basic CDs, TIAA Bank has a Yield Pledge Checking account, a Yield Pledge Money Market and a 42-month Bump Rate CD.

TIAA Bank’s CDs require at least $1,000 to open one. 

Loan

$1,000 minimum deposit to open

Rating: 3.4 stars out of 5

3.4

Overview

Bask Bank was founded in 2020 and started offering CDs and an interest savings account in 2022. Bask Bank offers four terms of CDs ranging from six months to two years.

Loan

$1,000 minimum deposit to open

What to know about 1-year CDs

What is a 1-year CD?

Having a one-year CD means that your savings will be tied up for 12 months. Generally, you won’t be able to access your funds during that period of time without incurring an early withdrawal penalty. In exchange, you’ll earn a higher yield than you would from a standard savings account or money market account – at the time of opening up that CD. 

How CD rates work

At competitive online banks, CD rates will generally follow changes in Treasury yields. They might also follow other factors such as the rates set by competitors and the bank’s need for deposits.   

Some banks have a 10-day best rate guarantee, meaning you could end up with a better rate if the bank raises theirs within days of your decision to open and fund your account. But generally, once you open and fund a fixed-rate CD, you’re stuck with that APY until your term ends. Over time, the bank may raise or lower the advertised rate for new account holders, but your rate will remain the same.

You’ll find that some institutions offer bump-up or step-up CDs that allow rates to change either upon request or at certain intervals during the term. Rates for these CDs, however, tend to be lower than those tied to fixed-rate CDs.

When reviewing CD rates, pay close attention to the APY. The APY includes the effects of compounding. Compound interest is the interest you earn on interest.

Calculate how much interest you’ll earn as you compare APYs.

Who should open a 1-year CD?

A one-year CD at an FDIC-insured bank is a great option for money that you’re not planning to use for a year and that you want to keep safe. Just make sure that your money is within FDIC limits and guidelines. 

There are higher-yielding potential investments out there. But the safety of FDIC insurance – backed by the full faith and credit of the U.S. government – and the fixed APY make a CD unique. That fixed APY means you can calculate exactly how much interest you’ll earn after a year. 

A high-yield savings account is probably a better option for money that you might need in a few days, weeks or months. That way the money will be liquid and available to you without incurring an early withdrawal penalty.

Today’s top nationally widely available one-year CDs pay 4.75 percent APY. That’s not enough to retire on, but it’s a good vehicle to meet short-term financial obligations (like saving for a down payment on a house) that can let your money grow near the rate of inflation without having to worry about missing out on better deals that arrive after you invest.

Pros and cons of 1-year CDs

Pros

• Your money is protected with FDIC insurance, as long as you’re within FDIC limits and guidelines. 
• You know exactly how much interest you’ll earn since generally CDs have fixed APYs. 
• Knowing that there’s an early withdrawal penalty can prevent you from withdrawing this money if you don’t need to. 

Cons

• You can probably earn more through other investments. But you might also lose money from those investments too since they probably don’t have a guaranteed, fixed yield.
• CDs have early withdrawal penalties. So if you unexpectedly need this money, you could lose interest – and even potentially some principal.

Alternatives to 1-year CDs

1-year CDs vs. other CD terms

A one-year CD is a great place to keep your money if it isn’t needed during the year. Consider other CD lengths for longer-term money.  

While a five-year CD might have a higher APY, a shorter-term CD can be a better option. CD rates could change significantly in a year and you might miss out on a good deal by locking up your money for longer. Of course, rates could also decrease significantly – like they did when the pandemic first hit. 

1-year CDs vs. savings accounts

CDs with terms lasting for one year often pay more interest than traditional savings accounts. Here’s why: You’re rewarded with a higher yield in exchange for agreeing to leave your money tied up for a set period of time.

What’s more, if you keep money locked up in a CD, it’s harder to access those savings. With a liquid savings account, there is usually no consequence for withdrawing funds (unless you make more than six withdrawals or transfers per statement cycle). Since your CD may have an early withdrawal penalty, you’ll probably think twice about raiding your savings.

Another benefit one-year CDs have over savings accounts is the guaranteed rate that applies for the full term. Savings account rates can change at any time as a result of changes in an interest rate environment or a bank’s priorities. That means over time, your rate of return could decline.

There are downsides to choosing a one-year CD over a savings account. Because CDs traditionally are not liquid accounts, it’s best to keep your emergency fund in a savings account. That way, you can easily access the funds you need to cover an unexpected expense without paying a penalty. Additionally, just as savings account interest rates can go down, they can also go up. By locking your money up in a CD, you could miss out on an opportunity to earn more interest.

1-year CDs vs. money market accounts

Another option is parking your cash in a money market account. At some banks, the money market account requires a higher minimum deposit. And at some banks, a money market account may pay more interest than the institution’s savings account.

Compared to money market account rates, however, one-year CD rates tend to be higher at competitive online banks. In many cases, you can qualify for one of the top 1-year CD deals without having to fork over a large amount of cash. At banks with a tiered interest rate structure, you may have to deposit more money to earn the top money market account rate.

Like high-yield savings accounts, money market accounts are worth considering if you’re not able to tie up money for months or years at a time. 

With a money market account, you can easily withdraw your savings at any time without penalty, and at some banks, you’ll have access to a debit card. Keep in mind that money market accounts may be limited to a maximum of six convenient transfers or withdrawals per month or per statement cycle. Even though in April 2020 there was an interim final rule to amend Regulation D and delete the limit on certain withdrawals, most savings accounts still have these limits. You might be charged a fee for exceeding these limits at some banks. 

These days some banks are allowing more transactions per statement cycle on savings deposit accounts. Union Bank, for instance, currently doesn’t have limits on the number of checks you can write from its money market account.

1-year CD FAQs

Research Methodology

Methodology for Bankrate’s best CD rates

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. (FDIC).

Banks we monitor

These financial institutions are featured in our CD rate research: Barclays, Bask Bank,  BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank (California), USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.

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