Best 1-Year CD Rates

Top banks and credit unions with the best rates and terms for a 1-year CD

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Each week, we review over 150 banks and credit unions to find the best rates available nationwide for 1-year CDs. We track annual percentage yields daily but re-evaluate the list weekly. All accounts are available to the public and are insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration. One-year CDs are an easy way to earn some extra interest on a chunk of your savings, while also safeguarding against you withdrawing it on a whim. 

For this list, we considered products that lock in deposits for 11 to 14 months. Our rankings are based primarily on the best APY. In the case of a tie, we then look at the CD with the shortest term, then with the lowest minimum deposit required to earn the APY. From there, we compare the penalties for early withdrawal. These factors allow us to ultimately decide which banks earn their spots in our rankings. Here are the top 1-year CD rates as of June 5, 2020.

APYs are changing rapidly amid widespread uncertainty about the economy and financial markets. The Balance is monitoring rates and updating them accordingly.

Best 1-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
Lafayette Federal Credit Union 1.61% $500 6 months of interest
Pen Air Federal Credit Union 1.50% $500 6 months of interest
Bank of Baroda 1.50% $1,000 1% reduction of interest
Financial Partners Credit Union 1.35% $1,000 3 months of interest
Georgia's Own Credit Union 1.30% $500 3 months of interest
Marcus by Goldman Sachs 1.30% $500 9 months of interest
Signature Federal Credit Union 1.30% $500 6 months of interest
Citizens Access 1.30% $5,000 3 months of interest
TotalDirectBank 1.30% $25,000 3 months of interest
Credit Union of Denver (13 months) 1.30% $5,000 3 months of interest ($20 minimum)

Here are details about some of the institutions on our list.

Lafayette Federal Credit Union

Lafayette Federal Credit Union is based out of Rockville, Maryland, and it operates just eight branches scattered around the Washington D.C. area. It’s a full-service credit union, and you can even choose from variable-rate and fixed-rate certificates depending on what tickles your fancy.

If you don’t qualify for membership through other means (such as living in the area or working for certain employers), you can also become a member by first joining the American Consumer Council for $8 or the Homeownership Financial Literacy Council for $10. You must also keep a $50 balance in a savings account.

Pen Air Federal Credit Union

It may be easier to join Pen Air Federal than some of the other credit unions on this list, since all you need is to join the Friends of Navy Marine Corps Relief Society if you don’t have the other affiliations listed. Pen Air will even make a $1 donation to the organization for you. You’ll also need to make a $25 deposit in a savings account to join.

Founded in 1936, Pen Air Federal Credit Union is the largest and oldest local credit union in Pensacola, Florida. While there are only 15 locations in Northwest Florida and Southeast Alabama, there are more than 109,000 members nationwide.

In addition to CDs ranging in term from three months to five years, personal and business savings, checking, and various accounts and lending products are also available.

Bank of Baroda

The Bank of Baroda probably isn’t a name you’ve heard of before. That’s because it’s a multinational bank originating in India, and its primary business is in helping Indian expats send money back to their home country. Bank of Baroda only dips its toes in the deposit accounts world by offering business bank accounts and personal CDs.

Financial Partners Credit Union

Financial Partners Credit Union has branches only in California, but it has more than 80,000 members and $1.5 billion in assets. It offers a wide range of banking services, including loans, insurance, investments, savings accounts, checking accounts, and even a car-buying service—but CDs are where this credit union really shines. To join the credit union, you must be a member of the AARP or any other credit union and keep at least $25 in a savings account.

Georgia's Own Credit Union

Based out of Atlanta, Georgia’s Own Credit Union has been around since 1934 and has about 184,000 members and $2 billion in assets as of May 2020. While living in certain parts of Georgia is one way to qualify for membership, you also can join by first becoming a member of the GettingAhead Association for $5 or Georgia’s Own Foundation for $10. As with most other credit unions, you’ll also need to keep at least $5 in a savings account in order to keep your membership active.

Marcus by Goldman Sachs

Yep, you read that right—this bank is a direct subsidiary of the famed investment bank, Goldman Sachs, itself a massive institution. Marcus launched in 2016, offering digital savings accounts and loans to the average Joe. Surprisingly, for a bank with such a hoity-toity reputation, Marcus does offer very good rates on its financial products, which is why it lands on our top CDs list.

Signature Federal Credit Union

Signature Federal Credit Union opened in 1970 and is based in Virginia. But it’s membership in the CO-OP shared branching network allows you to carry out transactions at any of its shared branches or service centers. In addition to CDs with 3-month to 5-year terms, the credit union offers checking, savings, and money market accounts, as well as loans. To become a member and get any of these products, get sponsored by a current member or join the American Consumer Council at no charge. You’ll also need to make a $5 deposit into a savings account.

Citizens Access

Citizens Access is an online-only division of Citizens Bank that offers savings accounts and CDs. With no physical branches, it was launched in 2018 with the intent to offer better rates on savings products than what its brick-and-mortar affiliate could provide. Citizens Access charges no fees, and accounts require a minimum opening deposit of $5,000.


TotalDirectBank is a division of City National Bank of Florida, which was founded more than 70 years ago. TotalDirectBank keeps the product lineup simple, with money market accounts and CDs with terms of up to five years. Anyone in the U.S. (except those in Florida, Puerto Rico, American Samoa, Guam, Northern Mariana Islands, and U.S. Virgin Islands) can open a money market or CD account.

Credit Union of Denver

The Credit Union of Denver began in 1931 with eight members and $40 and has since grown into an institution with nearly 64,000 members and more than $880 million in assets.

Membership is available to anyone who lives or works in Adams, Arapahoe, Boulder, Denver, Douglas, or Jefferson Counties in Colorado, or anyone who works for the Regional Transportation District, the National Renewable Energy Laboratory, or any businesses that works with the RTD or NREL. Memberships also are available to family of members and to students at select schools and colleges. The cost of membership is $5.

What Is a 1-Year CD?

A certificate of deposit (CD), offered by banks and credit unions, provides a fixed interest rate (typically higher than other account types) in return for the account holder agreeing to leave the deposit for a set amount of time. The rate is fixed so customers know exactly how much they’ll earn by the time the CD matures. For a 1-year CD, the account holder agrees not to touch the deposit for one year. At the end of the term, the full interest will be added to the deposit amount. The customer then has the option to withdraw the full amount or renew/change the CD.

Who Is a 1-year CD Best For?

A 1-year CD is appropriate for someone who wants to earn more interest than a typical savings account would offer, although occasionally you can find a savings account with an even better rate than a 1-year CD. But savings rates are variable, so if you think rates are likely to fall and you want to lock in a good one today, go with the CD. 

Remember, you need to be comfortable with tying up the money for one year. That’s because there are usually early withdrawal penalties, and the last thing you want to do is lose out on those earnings.

A common reason to consider a 1-year CD might be if you’re saving for a trip or big event to take place next year. The idea is that it’s a short-term investment. Opening a CD helps you avoid the temptation of spending the money, and lets you earn a bit of interest while you wait for it to mature. 

Typically, the longer the term, the higher the rate you’ll receive. A 1-year CD can be especially helpful with longer-term savings goals if you’re building a CD ladder. With a CD ladder, you buy CDs of varying lengths to mitigate the risks of locking all your money into one long-term CD. 

What Are the Alternatives to a 1-Year CD?

If you’re looking for a savings option, a 1-year CD is just one of them. When choosing the best approach for you, the key is to think about your current financial situation, your goals, and your saving/spending habits. Beyond a 1-year CD, there are some other options to consider.

Explore Different CD Terms

If you know you want to go the CD route, you may decide to go with a shorter or longer term, depending on your needs. Shorter term CDs allow you access to your money sooner, but will probably have a lower APY. Longer terms likely will earn more, but will separate you from your money for a bigger stretch of time.

High-Yield Savings Accounts

If you’d rather not tie up your money, you might consider an online savings account. Some APYs are comparable to or even higher than 1-year CD APYs. The difference is that savings account rates can change at any time. Also, if you don’t have self control when it comes to spending, the easier access that a savings account affords you might not work in your favor.

If you prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.