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As of October 2022, the average rate for a 1-year CD in the US is 0.60%, according to the FDIC. However, some online banks pay over 3.55% APY right now.

A 1-year may ideal if you’d like to maintain a solid interest rate for a relatively short time. If you choose a 1-year CD, you’ll also have the chance to earn a higher interest rate if rates are up in a year. Interest rates on savings accounts are expected to slowly rise over the course of the year.

Compare our top picks for 1-year CDs

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Low minimum opening deposit

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

3.75/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

3.75/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

3.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star


Learn more


On First National Bank of America’s website

CFG Bank Certificate of Deposit


Annual Percentage Yield (APY)

3.82% to 4.00% APY


Minimum Deposit Amount

$500

CFG Bank CFG Bank Certificate of Deposit

CFG Bank Certificate of Deposit


Annual Percentage Yield (APY)

3.82% to 4.00% APY


Minimum Deposit Amount

$500


Annual Percentage Yield (APY)

3.82% to 4.00% APY


Minimum Deposit Amount

$500

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Why it stands out: CFG Bank has a high interest rate on its 1-year CD, and you’ll only need $500 upfront to open one.

APY for 1-year CD: 3.82% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Limited term options. CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 13-month, 18-month, 36-month, or 60-month CDs.

Crescent Bank Crescent Bank CD


Annual Percentage Yield (APY)

0.50% to 4.20% APY


Minimum Deposit Amount

$1,000

Crescent Bank Crescent Bank CD


Annual Percentage Yield (APY)

0.50% to 4.20% APY


Minimum Deposit Amount

$1,000

On Crescent Bank’s website


Annual Percentage Yield (APY)

0.50% to 4.20% APY


Minimum Deposit Amount

$1,000

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Why it stands out: Crescent Bank has online CDs with competitive interest rates. You may open an online Crescent CD from anywhere in the US as long as you are a US citizen and over the age of 18.

APY for 1-year CD: 3.75% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Crescent Bank has a $1,000 minimum opening deposit. Some of our other top picks let you open a CD with less money upfront.

Rising Bank Rising Bank Certificate of Deposit

Rising Bank Certificate of Deposit


Annual Percentage Yield (APY)

2.55% to 3.85% APY


Minimum Deposit Amount

$1,000

Rising Bank Rising Bank Certificate of Deposit

Rising Bank Certificate of Deposit


Annual Percentage Yield (APY)

2.55% to 3.85% APY


Minimum Deposit Amount

$1,000


Annual Percentage Yield (APY)

2.55% to 3.85% APY


Minimum Deposit Amount

$1,000

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Why it stands out: The online bank Rising Bank pays a good rate for 1-year CDs.

APY for 1-year CD: 3.70% APY

1-year CD early withdrawal penalty: 90 days interest

What to look out for: Rising Bank compounds your interest every three months instead of daily, so you’ll earn less in the long run. Depending on how much money is in your CD, this may or may not make a significant difference. 

Bread Savings Bread Savings High-Yield CD

Bread Savings High-Yield CD


Annual Percentage Yield (APY)

3.60% to 4.25% APY


Minimum Deposit Amount

$1,500

Bread Savings Bread Savings High-Yield CD

Bread Savings High-Yield CD


Annual Percentage Yield (APY)

3.60% to 4.25% APY


Minimum Deposit Amount

$1,500

On Bread Savings’s website


Annual Percentage Yield (APY)

3.60% to 4.25% APY


Minimum Deposit Amount

$1,500

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Why it stands out: Bread Savings pays competitive rates on CDs. 

APY for 1-year CD: 3.60% APY

1-year CD early withdrawal penalty: 180 days simple interest

What to look out for: Minimum deposit and early withdrawal penalty. You’ll need at least $1,500 to open a CD, and you can find lower early withdrawal penalties with some of our other top picks.

Bask Bank Bask Bank Certificate of Deposit

Bask Bank Certificate of Deposit


Annual Percentage Yield (APY)

3.30% to 3.60% APY


Minimum Deposit Amount

$1,000

Bask Bank Bask Bank Certificate of Deposit

Bask Bank Certificate of Deposit


Annual Percentage Yield (APY)

3.30% to 3.60% APY


Minimum Deposit Amount

$1,000


Annual Percentage Yield (APY)

3.30% to 3.60% APY


Minimum Deposit Amount

$1,000

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Why it stands out: Bask Bank offers a high interest rate on a 1-year CD. 

APY for 1-year CD: 3.60% APY

1-year CD early withdrawal penalty: 90 days simple interest

What to look out for: Bask Bank has limited CD terms. If you’re looking to open a CD term over 2 years, you might prefer another institution. 

First National Bank of America First National Bank of America Certificate of Deposit

First National Bank of America Certificate of Deposit


Annual Percentage Yield (APY)

3.55% to 3.75% APY


Minimum Deposit Amount

$1,000

First National Bank of America First National Bank of America Certificate of Deposit

First National Bank of America Certificate of Deposit


Annual Percentage Yield (APY)

3.55% to 3.75% APY


Minimum Deposit Amount

$1,000

On First National Bank of America’s website


Annual Percentage Yield (APY)

3.55% to 3.75% APY


Minimum Deposit Amount

$1,000

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Why it stands out: First National Bank of America’s main strength is its high interest rate. 

APY for 1-year CD: 3.55% APY

1-year CD early withdrawal penalty: 180 days interest

What to look out for: The 180-day penalty isn’t as harsh as what some banks charge, but you can still find lower fees at some of our other top picks.

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.

Bank is 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.

RisingBank is the only financial institution on our list that hasn’t been rated by the BBB. However, it’s parent company Midwest Bank Centre does.

Here is each company’s score:

All of our top picks have an A+ from the BBB, with the exception of Bask Bank. Bask Bank received a D+ rating from the BBB because it hasn’t responded to a customer complaint. However, its parent company Texas Capital Bank has an A+ rating from the BBB. 

Something to keep in mind is that a BBB rating isn’t necessarily the end-all-be-all. If you’d like to see if a companies a good fit, talk to current customers or read online reviews too.

The only bank on our list that’s been involved in a public controversy is Bread Savings. 

In July 2022, the BBB opened an investigation into Bread Financial because it received customer complaints stating they could not access Comenity credit card accounts.

According to the BBB website, Bread Financial said that due to its rebranding and software system, an upgrade was preventing customers from accessing their accounts. Bread Savings posted an FAQ on their website to explain the situation. The BBB has reached out again to see how the company will address customer issues, and will update Comenity Bank’s profile once it has more information.

Why trust our recommendations?

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.

Frequently asked questions

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.

If you open a 1-year CD at a 3.55% APY, you’ll earn 3.55% for one year. Once your term ends, you’ll have to option to renew your CD. Financial institutions may offer a new rate since interest rates on products are affected by the federal funds rate.

Keep in mind that some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.

The best option for you will likely depend on how soon you plan to need the money and which term pays the highest rate.

Longer terms typically offer higher rates — but that isn’t always the case. Also, going for a short-term CD may give you the opportunity to get a better interest rate if rates are up in a year.

With a 3-year or 5-year CD, you could miss out on higher rates. That said, you could avoid lower rates with a 3-year or 5-year term if rates drop later.

Many experts recommend CD laddering — a strategy where you open multiple CDs with different term lengths. Through this strategy, you’ll be able to take advantage of higher rates with longer terms, but also access some of your money earlier. For example, you might open 1-year, 3-year, and 5-year CDs at the same time, which means you’ll get some of your money back in one year, then more in three years, then more in five years.

Choosing between a 1-year CD and high-yield savings account will depend on several factors.

Banks typically pays a higher rate for a 1-year CD than for a high-yield savings account. However, that’s not always the case. You’ll want to compare a few options to see which rates appeal the most to you.

Also, keep in mind that a 1-year CD locks in your rate for the entire year. If rates are dropping, this could make the CD a better choice, because your savings interest rate could decrease throughout the year. If rates are rising, the savings account might be a better fit, because your rate could go up.

It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly — but if you need access to money from your 1-year CD before it matures, you’ll have to pay a fee.

You can also continuously add money to your savings account, whereas most 1-year CDs block you from making additional deposits after opening it.

You may prefer a money market account over a CD if you want quick access to your money. Money market accounts usually come with paper checks or an ATM card, which CDs don’t offer.

Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping.

Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD only permits an opening deposit.

A CD is typically viewed as a type of savings account. Your potential for losses and gains — your risk — is much more limited. CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.

If you need to access your money in a year and want a guaranteed rate of return, a 1-year CD is a better choice than a different type of investment account. 

If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. For example, you can get tax-advantaged retirement accounts, like a 401(k) or IRA, which grow your money over decades. Brokerage accounts are another option. These accounts may be useful tools to build long-term wealth, but can’t guarantee a given return like a savings account can.

You can also open IRA CD, which is sort of a combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.



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