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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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 June 24, 2022.

Best 1-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
Bread Savings 2.50% $1,500 6 months of interest
United Texas Bank 2.25% $1,000 3 months of interest
State Bank of Texas 2.25% $25,000 30 days of interest
NexBank 2.15% $25,000 6 months of interest
NexBank 2.10% $10,000 6 months of interest
Popular Direct 2.10% $10,000 9 months of interest
Merrick Bank 2.10% $25,000 2% of balance
INSBank Online 2.05% $2,500 6 months of interest
Premier America Credit Union (14 months) 2.05% $1,000 6 months of interest
MYSB Direct 2.02% $500 All interest (3 months minimum)

Below are the top certificate of deposit rates available from our partners, followed by details about some of the institutions in our ranking.

Bread Savings

Bread Savings is part of Bread Financial, an FDIC-insured institution formerly known as Alliance Data Systems. Bread Savings offers savings accounts and CDs, while Bread Financial also offers lending options under the name Bread Loans in addition to multiple credit cards.

Bread has no brick-and-mortar locations, but customers can manage their accounts online or via a mobile app for Android and Apple devices.

United Texas Bank

United Texas Bank was founded in 1986 in Dallas. It still has only two physical locations, both in Dallas, but its emphasis on online banking makes its services available to anyone in the nation. In addition to CD terms ranging from one month to five years, it offers checking and savings accounts as well as a variety of personal loans.

Its online banking services include a mobile app compatible with Apple or Android devices, online bill pay, and mobile check deposit.

State Bank of Texas

The State Bank of Texas was established in 1987 with the goal of serving the lending needs of immigrants. A family-owned bank, it has four branches in Dallas and the surrounding area in addition to branches in four Chicago locations.

Online and mobile banking options allow customers to open accounts from anywhere. In addition to CDs, the State Bank of Texas offers checking and money market accounts.


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.

Popular Direct

As a digital branch of Popular Bank, a full-service bank in the U.S., Puerto Rico, and the Caribbean, Popular Direct has more than 120 years of history. It is a subsidiary of Popular Inc. Popular Direct is focused on savings and CD accounts with CD terms ranging from three months to five years, and you can rest easy knowing your deposits are FDIC-insured.

Customers can manage accounts online or through an app available for both Android and Apple devices.

Merrick Bank

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.

INSBank Online

INSBank Online is the digital arm of Tennessee-based INSBank. It offers just two types of accounts: money market accounts and CDs. CDs offer flexible terms ranging from three months to three years, allowing you to meet short- and medium-term savings goals. Accounts come with convenience features such as an online dashboard and private client advocates to answer your questions.

Premier America Credit Union

With more than 100,000 members, 63-year-old Premier America is one of the nation’s top credit unions. You can become eligible for membership simply by first joining the Thousand Oaks Alliance for the Arts for free. (You’ll also need to open a savings account with at least a $5 deposit.) Though the credit union is based in California, members can use the 5,000+ branches nationwide in its shared network.

From checking and savings accounts to loans and credit cards, there is a variety of banking products from which to choose at Premier America. Certificates are available in terms ranging from three months to five years.

MYSB Direct

MYSB Direct is the online-only division of M.Y. Safra Bank, and it is marketed as an option with higher rates. Accounts for MYSB Direct are opened and managed through M.Y. Safra’s online and mobile banking services. Its mobile banking app is available for Android and Apple devices.

The history of the Safra family in banking dates back to Jacob E. Safra, who established his own bank in Beirut in 1920. Two generations later, Moise Y. Safra established M.Y. Safra Bank, a full-service bank in New York City. It offers private, personal, and business banking, as well as fintech services.

CD terms are available from three months to five years.

Luana Savings Bank

Luana Savings Bank was founded in 1908 and has a total of six branch offices—three in central Iowa and three in northeast Iowa. One of its primary focuses is agricultural lending, but it also offers a full suite of personal banking options, including CDs, checking and savings accounts, auto loans, home loans, personal loans, and more.

Those who do not live in central or northeast Iowa can manage accounts through Luana's online banking options, which include a mobile app available on Android and iOS devices.

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 or 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.

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.

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.

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.

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.

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.