We review more than 150 banks and credit unions to find the best rates available nationwide for 1-year CDs. We track annual percentage yields and re-evaluate the list every weekday. 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 July 27, 2021.
Best 1-Year CD Rates
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|Lafayette Federal Credit Union||0.80%||$500||6 months of interest|
|CommunityWide Federal Credit Union||0.80%||$1,000||Complex formula; exercise caution|
|Abound Credit Union (13 months)||0.80%||$500||3 months of interest|
|MAC Federal Credit Union||0.75%||$1,000||1 month of interest|
|NexBank||0.75%||$10,000||6 months of interest|
|GreenState Credit Union (13 months)||0.75%||$1,000||12 months of interest|
|Comenity Direct||0.70%||$1,500||6 months of interest|
|Merrick Bank||0.70%||$25,000||2% of balance|
|Credit Union of Denver (13 months)||0.70%||$5,000||3 months of interest ($20 minimum)|
|CFG Bank||0.67%||$500||6 months of interest|
Here are details about some of the institutions on our list.
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 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 also can become a member by first joining the Homeownership Financial Literacy Council for $10. You also must keep a $50 balance in a savings account.
CommunityWide Federal Credit Union was founded in 1967 and is based in northern Indiana. If you don’t meet its employment-based membership criteria or have a family member who’s already a member, you easily can join by becoming a member of a partner organization such as the Marine Corps League of St. Joseph Valley, which starts at $15 per year. You must deposit $5 in savings. It’s also part of the CO-OP shared branching network.
Formerly known as Fort Knox Federal Credit Union, Abound Credit Union is a Kentucky-based institution with ties to the Fort Knox Army base. Started by 10 people in 1950, Abound claims it is the largest credit union in the state, with 18 locations and more than 100,000 members. While it caters to military and civil service employees and their families, anyone can join, as long as they pay the $10 one-time membership fee and keep at least $5 in a savings account.
MAC Federal Credit Union offers members financial products like checking, savings, and money market accounts, credit cards, insurance, and more. Originally founded in 1952 to serve the active duty and civil service personnel in Fort Wainwright, Alaska, the credit union is now open to anyone who obtains membership to the Polar Bear chapter of the Association of the United States Army, which you can get for $40 for two years. You’ll also need to open a savings account and deposit $25.
Founded in 1922, NexBank has nearly $8.9 billion in assets. It serves customers in and around Dallas, Irving, and Plano, Texas, mostly financial institutions, large corporations, real estate companies, and middle-market firms. However, it also offers personal banking products, including checking, savings, and money market accounts, mortgages, and CDs with terms ranging from three months to five years.
GreenState Credit Union is based out of North Liberty, Iowa, and claims to be the largest credit union in the state given its more than 225,000 members. It’s understandably focused on Iowans in particular, but if you’re a member of the Iowa Association for the Education of Young Children (membership is open to anyone and costs $30), you may be eligible to join if you live elsewhere and don’t meet any of the other membership criteria. You’ll also need to open a savings account and make a $5 deposit.
Comenity entered the world of financial services when it offered its first credit card in 1986. Today, Comenity Bank and Comenity Capital Bank partner with retailers to offer private label, co-brand, and business credit cards to more than 50 million customers. Comenity Direct is the company’s online banking arm that’s focused on high-yield savings products and CDs.
Certificates are available in 1- to 5-year terms.
Merrick Bank has been around since 1997 and specializes primarily as a major issuer of Visa credit cards. The bank also provides personal loans and loans for boats and other recreational vehicles.
As far as CDs go, terms range from six months to two years.
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 work 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.
CFG Bank is a privately owned and operated bank that dates back more than 90 years and is headquartered in Baltimore. As the 12th largest bank in Maryland, it serves mainly the mid-Atlantic region, but any U.S. citizen or legal resident who is 18 years or older can apply for a CD account. You’ll also need a valid Social Security number and a physical address in the U.S. CFG Bank offers CDs with multiple terms ranging from 12 months to 60 months. In addition, the bank has checking accounts, money market accounts, and more.
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. Because the rate is fixed, the account holder knows exactly how much the CD will earn when it 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 there are savings accounts with even better rates than 1-year CDs. However, 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 a CD.
Remember, you need to be comfortable with tying up the money for one year. That’s because there usually are 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 probably will 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 lack 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.