Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
The average rate for a 1-year CD in the US is 1.76% APY (Annual Percentage Yield). However, the best online banks pay well over 5% APY on a 1-year CD.
The best CD rate on a 1-year CD is 5.65% APY from TotalDirectBank. If you are looking for additional CD options, there are other financial institutions with high 1-year CD rates, too.
We check rates daily to find the best rates for 1-year terms. Here are our recommendations for the best 1-year CDs.
Best 1-Year CD Rates
- TotalDirectBank 1 Year CD: 5.65% APY
- Connexus Credit Union 1 Year Share Certificate: 5.61% APY
- Limelight Bank 1 Year Online CD: 5.60% APY
- Western Alliance Bank 1 Year CD, powered by Raisin: 5.51% APY
- Rising Bank 1 Year CD: 5.50% APY
- CFG Bank 1 Year CD: 5.50% APY
- LendingClub 1 Year CD: 5.50% APY
- Popular Direct 1 Year CD: 5.50% APY
- Santander Bank, N.A. 1 Year CD: 5.50% APY
These are our picks for the best 1-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best 1-Year CDs
1-Year CD FAQs
A 1-year CD may be worth it if you don't need access to some of your savings for an entire year. Some of the highest CD rates overall are available as 1-year terms.
A 1-year CD is a type of savings account. You'll put money into an account for 12 months and earn a fixed rate. You have the option to renew your CD at the end of the year, or close the account and take out your money.
The best rate for a 1-year CD is 5.65% APY available at TotalDirectBank.
CD could be better than a high-yield savings account if you do not need immediate access to your money or expect interest rates to drop. If rates are rising or you'll need regular access to your money, a savings account might be a better fit.
1-Year CD Reviews
TotalDirectBank 1 Year CD
The TotalDirect Bank CD pays the highest rate for a 1-year term nationwide. It also pays high rates on 3-month and 6-month terms.
TotalDirectBank is the online-only division of City National Bank of Florida.
APY for 1-year CD: 5.65% APY
1-year CD early withdrawal penalty: 90 days of interest
What to look out for: TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. The online institution also doesn't operate in Florida, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.
Connexus Credit Union 1 Year Share Certificate
The Connexus Credit Union 1 Year Share Certificate offers the highest rate at Connexus.
To join Connexus Credit Union, you must meet one of the membership eligibility requirements. The easiest way to join regardless of where you live is to become a member of the Connexus Association by making an initial $5 donation.
APY for 1-year CD: 5.61% APY
1-year CD early withdrawal penalty: 180 days of interest
What to look out for: Connexus Share Certificates have a $5,000 minimum opening deposit. Other banks may require less upfront.
Limelight Bank 1 Year Online CD
The Limelight Bank CD may be a good choice if you'd like to open a CD with standard-to-low early withdrawal penalties.
Limelight Bank, an online division of CCBank, offers a 1-year CD with a high interest rate. It also has a competitive interest rate on an 18-month term.
APY for 1-year CD: 5.60% APY
1-year CD early withdrawal penalty: 90 days of interest
What to look out for: You'll need at least $1,000 to open a CD. Some of our other picks let you open an account with $500 or less.
Western Alliance Bank 1 Year CD
The Western Alliance Bank 1 Year CD is the second highest-yield CD on Raisin.
Raisin is an online platform that lets you open and manage high-yield savings accounts and CDs from a variety of financial institutions. Raisin also has other CD terms that pay 5.00% APY or more.
APY for 1-year CD: 5.51% APY
1-year CD early withdrawal penalty: 90 days of simple interest
What to look out for: You may prefer one of our other top picks if you would rather open a bank account directly with a bank. You also can't get a checking account with Raisin, so it may not be the best option if you want to do all your banking with one company.
Rising Bank 1 Year CD
The Rising Bank 1 Year CD has the highest interest rate at the bank right now. You also might like this institution if you are searching for a CD with reasonable early withdrawal penalties.
APY for 1-year CD: 5.50% APY
1-year CD early withdrawal penalty: 90 days of interest
What to look out for: Rising Bank compounds and deposits interest every three months. Other financial institutions may compound interest daily. Depending on how much money you plan to deposit into your account, this could potentially make a significant difference.
CFG Bank 1 Year CD
Why it stands out: CFG Bank CDs have a low minimum opening deposit of $500 and pretty good rate for a 1-year term.
APY for a 1-year CD: 5.50% APY
1-year CD early withdrawal penalty: 90 days of interest
What to look out for: CFG Bank only offers 1-year, 18-month, 3-year, and 5-year terms. Other banks may have a greater variety of terms to choose from.
LendingClub 1 Year CD
LendingClub CDs may be a good option if you're searching for short-term, fixed-interest savings options. The 1-year term pays the highest rate at LendingClub, followed by the 6-month and 18-month terms.
APY for 1-year CD: 5.50% APY
1-year CD early withdrawal penalty: 180 days of simple interest
What to look out for: LendingClub CDs require a $2,500 minimum deposit. Other banks may let you open a CD with $1,000 or less.
Forbright 1 Year Online CD
The Forbright Bank Online CD may be worthwhile if you value banking with an eco-friendly financial institution that has nationwide online CDs. The 1-year CD offers a high interest rate. You might like Forbright if you value banking with a financial institution that aligns with your values — Forbright Bank has received a Fossil Free Certification, which means that it will not lend to fossil fuel companies or projects.
APY for 1-year CD: 5.50% APY
1-year CD early withdrawal penalty: 3 months of interest
What to look out for: If you'd like to open a checking, savings, or money market account, you'll have to open an account at a branch in Maryland. Forbright Bank also has limited online CD terms. You'll find more variety at other online banks.
Popular Direct 1 Year CD
Popular Direct CDs pay competitive rates, and compound interest daily.
APY for 1-year CD: 5.50% APY
1-year CD early withdrawal penalty: 270 days of simple interest
What to look out for: You'll need at least $10,000 to open a Popular Direct CD. The early withdrawal penalty is also pretty steep.
Santander Bank, N.A. 1 Year CD
Santander Bank is offering a 1-year promotional CD with a competitive interest rate. You may like this option if you live in CT, DE, MA, NH, NJ, NY, PA, RI, or select areas in Florida (Miami-Date, Monroe, Broward counties and select areas in Collier County).
APY for 1-year CD: 5.50% APY
1-year CD early withdrawal penalty: 3 months of interest
What to look out for: The 1-year promotional CD cannot be opened online. You'll have to visit a Santander branch, and branches are only available on the East Coast.
Other 1-Year CDs We Considered
We looked at the following 1-year CDs as well. These CDs ultimately weren't chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.
- Sterling United Federal Credit Union 1 Year Share Certificate: Sterling Federal Credit Union has a 1-year CD that pays above 5% APY, but it's only eligible to people who live, work, worship, volunteer, or go to school in an eligible county in Kentucky (Henderson County) or Indiana (Posey, Vanderburgh, or Warrick Counties).
- Sallie Mae CD: Sallie Mae CD rates recently dropped. The 1-year term pays 5.10% APY, which is lower than our top picks.
- Crescent Bank CD: Crescent Bank's 1-year CD pays 5.35% APY, which is just short of the top rates on our list.
- USAlliance Financial 12 Month Certificate: A 1-year USAlliance Financial Certificate pays 5.40% APY, but our top picks offer more competitive interest rates right now.
- CIBC Agility CD: CIBC Bank USA has an online 1-year CD that pays 5.36% APY. It wasn't one of our top picks because other financial institutions have higher CD rates for 1-year terms.
- BrioDirect High-Yield CD: BrioDirect has a 1-year CD that pays 5.35%, but our top picks offer higher rates right now.
- First Internet Bank of Indiana CD: First Internet Bank of Indiana has a 1-year CD paying 5.35% APY, but its rate is just short of the rates on our list.
- Bread Savings High-Yield CD: Bread Savings has a 1-year CD that pays 5.40% APY, but our top picks have higher 1-year CD rates.
- Quontic CD: Quontic Bank has a good rate, just not quite as high as what you'll find on our list.
- America First Credit Union 1 Year Certificate: AFCU pays a high rate on its 1-year term, but the rates at our top picks are slightly higher.
- Barclays Online CD: Barclays CDs can be opened with $0, but our top picks offer higher interest rates.
- Vio Bank CD: Vio Bank's 1-year term pays a lower interest rate than our top picks
- Air Force Federal Credit Union Certificate Account: Air Force Federal Credit Union pays high CD rates for a 1-year term but you'll need a minimum of $100,000 to qualify for the highest interest rate.
- Pentagon Federal Credit Union Money Market Certificate: PenFed pays a good interest rate on a 1-year CD, but our top picks have even higher rates right now.
- Alliant Certificate: Alliant offers competitive interest rates for short-term CDs. However, our top picks have even higher interest rates with lower minimum opening deposits.
- Bask Bank CD: Bask Bank pays a solid rate on a 1-year CD, but our top picks have even higher rates right now.
- American Express® CD: American Express lets you open a CD with $0, but our top picks offer more competitive interest rates right now.
- Marcus High-Yield CD: Marcus has high-yield CDs with solid interest rates, but our top picks have more competitive rates for a 1-year CD.
- Capital One 360 CD: Capital One 360 might be worth considering if you'd like to open a CD with a low minimum opening deposit. But, its CD rates aren't as competitive as our top picks.
- Citi Fixed Rate CD: Citi Fixed Rate CDs have a low $500 minimum opening deposit. Still, our top picks pay higher interest rates right now.
- Bank5 Connect High-Yield CD: Bank5 Connect has a strong interest rate on a 6-month CDs, but its other CD terms aren't as strong.
- Nationwide CD: Nationwide's 1-year CDs and 18-month CDs are its most appealing options, but other online banks offer even higher rates right now.
- Ally High Yield CD: Ally CDs might be a good choice if you'd like to get a CD with a $0 minimum opening deposit or low early withdrawal penalties. But its CD rates are currently lower than any of the banks on our list.
- Discover CD: The initial opening deposit for a Discover CD is $2,500. Our top picks have lower minimum opening deposits.
- Citizens Access Online CD: You'll need at least $5,000 to open an account, which is a bit steep compared to other online banks.
- Amerant CD: Amerant has solid interest rates, but our top picks offer more competitive rates right now.
- NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren't as strong.
- Live Oak Bank CD: Live Oak Bank offers a competitive interest rate, but you'll need at least $2,500 to open an account.
Bank Trustworthiness and BBB Ratings
We've compared each banks Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Institution | BBB grade |
| TotalDirectBank | A+ (rating for its parent bank, City National Bank of Florida) |
| Rising Bank | A+ (Rating for its parent bank, Midwest BankCentre) |
| Raisin | A- |
| CFG Bank | NR |
| LendingClub | A+ |
| Santander Bank | NR |
| Popular Bank | A+ (Rating for its parent bank, Popular Bank) |
| Limelight Bank | A+ (Rating for its parent bank, CCB Bank) |
| Forbright Bank | A+ |
| Connexus Credit Union | A+ |
The BBB gives Raisin an A- grade because there it has received 28 customer complaints on the BBB website.
Santander Bank received an NR (No Rating) from the BBB because it is in the process of responding to previously closed complaints. CFG Bank currently doesn't have a BBB rating because its profile is being updated.
A BBB rating isn't necessarily the be-all and end-all. If you'd like to see if a company is a good fit, talk to current customers or read online customer reviews.
LendingClub has been involved in one recent public controversy. In July 2021, LendingClub Corporation paid $18 million in a settlement with the Federal Trade Commission when accused of deceptive lending practices that charged consumers hidden fees and told them they were approved for a loan even when they weren't.
Why You Should Trust Us: Expert Advice on Choosing the Best CD
To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:
How can you be sure you're picking the right bank?
Tania Brown, certified financial planner at SaverLife, says the most important thing is FDIC insurance, which protects your money if the bank were to collapse. For credit unions, the equivalent is NCUA insurance. Next, she says, consider the experience you want to have with your bank: Do you want to walk in and talk to a person? Then you need a bank with a local branch. Are you fine never speaking to someone in person? Then an online bank will work for you. Do you write checks (or not)? Then you need an account that comes with checks.
Sophia Acevedo, a certified educator in personal finance and banking reporter for Personal Finance Insider, adds that it's a good idea to include costs in your list of priorities. For instance, is there a monthly fee for the account you want? If so, what are the requirements to waive it — and can you meet them? If it's important that you earn interest, you'll want to choose a bank and an account that pays a higher interest rate than the average bank account.
How do you choose between all the available CD terms?
Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life", says you should start by deciding when you need the money, then looking at available rates for CDs with similar timing.
Knowing how you'll use the money you plan to put in a CD is central to the one you choose, says Mykail James, MBA, certified financial education instructor at BoujieBudgets.com. Perhaps it's a house fund — in that case, if you know that you want to buy a house in two years, you'll need to make sure your CD term ends by then.
When do you use a CD instead of a high-yield savings account or money market account?
Brown says you should know two things to help make this decision: how much money you'll be putting in, and how much you plan to interact with that money. If you're going to need to make transactions before the term of a CD ends, you'll have to choose a high-yield savings or money market account.
Acevedo adds that both the high-yield savings account and money market account can be good options for an emergency fund or short-term savings goals. The savings accounts tend to offer strong interest rates, while money market accounts typically offer more access to your money, like paper checks or debit cards.
Our Methodology
Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.
First, we researched to find over 20 banks and credit unions that offered 1-year CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.