The best 1-year CD rate is 6.00% APY, available from Nuvision Credit Union for 10 months with a maximum deposit of $5,000. In anticipation of the Fed lowering rates in 2024, some institutions have already started to lower 1-year CD rates. Luckily, nationwide CD rates are still very high, and you can lock one in now to ensure you get the best rate for at least 10 months.
"For savers or households with extra cash on hand, 2024 may be the last year we will see CD rates north of 5.00% for the foreseeable future," Googlawi Editor-in-Chief Caleb Silver said. "The Federal Reserve has indicated through its most recent dot plot that interest rates are likely to be between 4.00% and 5.00% in 2025, and then as low as 3.00% to 4.00% in 2026. "
To find you the highest 1-year CD rates nationwide, we review CD rates from hundreds of banks and credit unions every day. Googlawi has been tracking CD rates since 2019. We look at factors that will help readers choose the best CD, like term, early withdrawal penalty, and minimum opening deposit.
CD terms of 10 to 14 months are eligible for our 1-year rankings, with minimum deposit requirements of up to $25,000. The CDs in this list may be a good fit if you're looking to reach a short-term savings or investment goal. If a 1-year CD is too much of a commitment though, you can always consider the best CD rates now for shorter terms or even a top-paying high-yield savings account.
Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere.
IN THE NEWS
The Fed held rates steady for a seventh consecutive time at its June 12 meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall.
You can find our ranking of the highest CD rates with terms of 10-14 months below. In cases where more than one institution pays the same annual percentage yield, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name.
The CD rates listed below are current as of the previous business day.
Best 1-Year CD Rates
- Nuvision Credit Union - 6.00% APY*
- Paramount Bank - 5.55% APY
- NexBank - 5.40% APY
- CFG Bank - 5.36% APY
- CIBC Agility - 5.36% APY
- TotalDirectBank - 5.35% APY
- North American Savings Bank - 5.35% APY
- Northpointe Bank - 5.30% APY
- Prime Alliance Bank - 5.30% APY
- Bask Bank - 5.30% APY
- Colorado Federal Savings Bank - 5.30% APY
- My eBanc - 5.30% APY
- Popular Direct - 5.30% APY
- West Town Bank and Trust - 5.30% APY
- First Internet Bank - 5.26% APY
Our full ranking of the top-paying nationally available 1-year CDs is listed below, including details about minimum deposits and early withdrawal penalty. For credit union CDs, information is also provided on how to easily join the credit union.
Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years.
Why You Can Trust Our Recommendations for the Best 1-Year CD Rates
Googlawi collects thousands of CD rates from hundreds of banks and credit unions every weekday. When ranking CD rates, we look at factors that will help readers choose the best CD, like term, early withdrawal penalty, and minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs.
Googlawi launched in 1999 and has been helping readers find the best CD rates since 2019. Back in 2019 when we first started tracking CD rates, the highest rate on a 1-year CD was 2.60%. Over the years, we've seen CD rates decrease and then increase again to the levels they are at now in 2024. The top 1-year CD rate today is over 2x what the top rate was when we started writing about the best CD rates in 2019.
The CDs we recommend must be available nationwide and these certificates typically pay three to five times as much as the national average—or even more. To be eligible for our 1-year CD rankings, each CD's minimum opening deposit requirement cannot exceed $25,000 and must be offered by an FDIC-insured bank or NCUA-insured credit union (which covers up to $250,000 per depositor). Terms of 10 to 14 months are included in our 1-year CD rankings.
Nuvision Credit Union - 6.00% APY*
- Term (months): 10
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Nuvision was established in 1935 as the credit union of Douglas Aircraft, and is headquartered in Huntington Beach, California. Anyone nationwide is eligible for membership through the American Consumer Council.
*This CD has a maximum deposit of $5,000.
Paramount Bank - 5.55% APY
- Term (months): 11
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Primarily a mortgage lender, established in 1970, St. Louis-based Paramount Bank was reorganized in 2004 and offers a selection of online consumer deposit accounts.
NexBank - 5.40% APY
- Term (months): 12
- Minimum deposit: $25,000
- Early withdrawal penalty: 6 months of interest
- About: Chartered in 1922, NexBank operates three branches in Dallas and serves customers nationwide with online banking.
CFG Bank - 5.36% APY
- Term (months): 12
- Minimum deposit: $500
- Early withdrawal penalty: 6 months of interest
- About: Headquartered in Baltimore with two brick-and-mortar branches in that area, CFG offers select banking products online to customers throughout the country. It dates back to 1927.
CIBC Agility - 5.36% APY
- Term (months): 12
- Minimum deposit: $1,000
- Early withdrawal penalty: 1 month of interest
- About: Headquartered in Toronto, CIBC's U.S. operations were established in 1991. CIBC Agility is the bank's online banking arm.
TotalDirectBank - 5.35% APY
- Term (months): 12
- Minimum deposit: $25,000
- Early withdrawal penalty: 3 months of interest
- About: TotalDirectBank is an online-only operation of City National Bank of Florida, established in Miami in 1946.
Not available in Florida and California
North American Savings Bank - 5.35% APY*
- Term (months): 13
- Minimum deposit: $5,000
- Early withdrawal penalty: Complex formula (6 months minimum)
- Overview: Established in 1927, North American Savings Bank is headquartered in Kansas City, where it operates more than a dozen branches while offering a menu of online banking products to customers nationwide.
*Not available to residents of Kansas and Missouri
Northpointe Bank - 5.30% APY
- Term (months): 11
- Minimum deposit: $25,000
- Early withdrawal penalty: 3 months of interest
- Overview: Northpointe was established in 1999 in Grand Rapids, Michigan, where it still maintains its one brick-and-mortar location. Anyone nationwide can open an account online.
Prime Alliance Bank - 5.30% APY
- Term (months): 12
- Minimum deposit: $500
- Early withdrawal penalty: 1 month of interest
- Overview: Established in 2004, Prime Alliance operates one branch in metropolitan Salt Lake City, while also offering deposit products online to customers throughout the U.S.
Bask Bank - 5.30% APY
- Term (months): 12
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Bask Bank is a division of FDIC-insured Texas Capital Bank, headquartered in Dallas. As an online-only bank, Bask has no physical branches.
Colorado Federal Savings Bank - 5.30% APY
- Term (months): 12
- Minimum deposit: $5,000
- Early withdrawal penalty: 3 months of interest
- Overview: Colorado Federal was founded in 1990 and is headquartered in Greenwood Village, Colorado. In addition to serving communities across the state, it serves customers nationwide with online banking.
My eBanc - 5.30% APY
- Term (months): 12
- Minimum deposit: $5,000
- Early withdrawal penalty: 3 months of interest
- Overview: My eBanc is an online banking arm of the brick-and-mortar institution BAC Florida Bank, established in 1973.
Popular Direct - 5.30% APY
- Term (months):
- Minimum deposit: $10,000
- Early withdrawal penalty:
- Overview: Popular Direct is the online-only arm of Popular Bank, the U.S. banking subsidiary of Popular Inc., which was founded in 1893 and serves banking customers in the U.S., Puerto Rico, and the Caribbean. It is headquartered in New York.
West Town Bank and Trust - 5.30% APY
- Term (months): 13
- Minimum deposit: $10,000
- Early withdrawal penalty: 3 months of interest
- Overview: Founded in 1922 and based in North Riverside, Illinois, West Town Bank and Trust also operates out of Raleigh, North Carolina. West Town Bank and Trust does not offer online account opening, but CD accounts are available nationwide and can be opened by phone.
First Internet Bank - 5.26% APY
- Term (months): 12
- Minimum deposit: $1,000
- Early withdrawal penalty: 6 months of interest
- Overview: First Internet Bank is so named because it claims to be the first FDIC-insured bank to operate exclusively online. Founded in 1999, it is based in the Indianapolis suburb of Fishers, Ind.
What Is a 1-Year CD and How Does It Work?
Certificates of deposit (CD) with a 1-year term are special types of accounts with interest rates that are usually higher than other savings accounts. In exchange for the high rate, you must keep your funds locked up for about 10 to 14 months. This may be good for your short-term savings since you can access the money by next year.
The reason banks and credit unions are willing to pay higher rates on 1-year CDs is because they can generally count on those funds staying in the account, unlike funds that can unpredictably come and go in a savings, money market, or checking account.
Banks and credit unions offer CDs in a variety of terms, from 1 month up to 10 years, so you can choose how long you're willing to lock up your funds. The most common CD terms, however, range from 6 months to 5 years, with 1-year certificates being the most widely available of all.
The date your CD ends is called its maturity date, and although it’s not impossible to withdraw your funds before maturity, you’ll incur a financial penalty if you do so.
Fast Fact
When asked in late April what they would invest in if they had an extra $10,000, 12% of Googlawi readers said they would open a CD. Back in December and January, 11% and 9% of readers (respectively) said they’d invest extra funds in CDs, with that share dipping even further to 8% in March. While CDs sit below individual stocks as the top response (at 19%), CDs are always a good option for those looking for safer investments.
IS A 1-YEAR CD RIGHT FOR YOU?
"We got two 1-year CDs because the interest rates were better than what we were earning on our savings accounts. It was very simple to sign up and only took a few minutes at the bank. The timeframe for the CD was good; short-term worked for us in case we need the money. The rate was definitely better than our savings rate too, and we'll most likely roll them over when the time comes," said Helen Koby, a retired New Jersey resident who opened two 1-year CDs with her husband in 2023.
Pros and Cons of the Best 1-Year CDs
Pros
- Fixed interest rate for a full year: Once you open a CD, you lock in the rate you’ll receive for the full term, no matter what the Federal Reserve does or how other interest rates move. This is a big advantage if rates are predicted to fall, and it can help you stay on track toward your short-term savings goals.
- Higher APY than liquid accounts: Banks and credit unions are willing to pay higher rates on CDs, where they know the money will stay put, than on savings, money market, and checking accounts, where you can withdraw funds more often.
- Fully predictable earnings and date of withdrawal: Since a CD’s rate and term are fixed, you know exactly when you’ll be able to withdraw the funds and exactly how much interest you’ll have earned by that date.
- Extremely safe, with almost no risk: When you open a CD at an FDIC-insured bank or NCUA-insured credit union, you are federally protected on up to $250,000 in deposits, even if the institution fails.
- Potential deterrent to spending temptations: If you find it hard not to dip into your savings, the early withdrawal penalty on CDs can serve as a useful roadblock to unwanted spending.
Cons
- Early withdrawal of the funds will incur a penalty: If you find you need the funds in your CD sooner than the maturity date, you’ll be hit with an early withdrawal penalty that will reduce your earnings.
- You can’t add to your deposit: Once you decide on your initial deposit amount for a CD, that’s a final decision. You cannot make additional deposits or add money.
- If rates rise, you may miss out on a higher rate: If rates go up while you own your CD, it means you may have been able to score a higher rate if you had locked in later.
- If rates drop, you may wish you’d chosen a longer CD: Alternatively, if rates begin declining, you may regret not locking in your great rate for a much longer duration.
Be sure to carefully review the terms of your prospective CD before signing off on it and funding the account. But if you find you've changed your mind about the CD within the first few days of opening it, some banks offer a grace period enabling you to quickly exit penalty-free.
How Much Money Does $1,000 Make in a Top-Paying 1-Year CD?
The amount of money in interest that a $1,000 deposit can make in a 1-year CD will depend on the interest rate. Below are three different scenarios based on three different interest rates you could get on a 1-year CD:
The higher your deposit, the higher the interest you will earn from a CD. If you had $10,000 to deposit in a 1-year CD with these same rates, you could earn between $450 and $540 in interest in one year (as long as you do not withdraw your money early).
When Is the Best Time to Get a 1-Year CD?
The best time to get a 1-year CD is right before interest rates drop. There's no easy way to know when that will happen, though, so you'll have to decide when the time is right for you.
For example, if the 1-year CD you're planning to open has a rate of 5.50% APY right now, and you believe the Fed will lower the fed funds rate in the next month or two, then now might be the best time to get that CD. That's because CD rates typically follow the fed funds rate, so if the Fed lowers rates, your choice of 1-year CD could also see its rate fall.
Of course, the best time to get a CD will also depend on your situation—you may need to have a certain amount for the deposit, as well.
Note
In June 2024, the national average interest rate for a 1-year CD was 1.86% APY, according to the FDIC. The best CD rates nationwide are 3x higher, so be sure to shop around to find the best CD rate and institution for you.
How to Find the Best CD
- Shop around to learn where the highest 1-year CD rates are offered. You may find CD options at banks, credit unions, or even brokerage accounts.
- The best 1-year CD for you will be where you feel most comfortable stashing your cash and leaving it for 12 months. While 12 months can feel like a long time, it may help you reach your short-term savings goals faster.
- Look at the early withdrawal penalty. If you need the money sooner than the term's end, you'll likely pay this penalty (though there are some CDs with no penalties).
- Compare your options, review the terms, and then deposit the money to start earning interest.