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 Jan. 21, 2022.

Best 1-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
Poppy Bank 1.00% $1,000 Contact bank for terms
Quorum Federal Credit Union (13 months) 0.90% $1,000 6 months of interest
PenFed Credit Union 0.85% $1,000 12 months of interest if closed within first year; 30% of interest if closed after first year
EFCU Financial 0.80% $500 6 months of interest
Lafayette Federal Credit Union 0.80% $500 6 months of interest
MAC Federal Credit Union 0.75% $500 1 month of interest
CommunityWide Federal Credit Union 0.75% $1,000 Complex formula; exercise caution
Live Oak Bank 0.75% $2,500 3 months of interest
Colorado Federal Savings Bank 0.73% $5,000 3 months of interest
Interior Federal Credit Union 0.71% $500 3 months of interest

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

Poppy Bank

Poppy Bank, based out of Santa Rosa, California, was formed in 2005 and has several branches throughout California, in addition to loan offices in New York, South Carolina, Texas, and Utah.

Customers nationwide can bank with Poppy through online banking, its mobile app, or MoneyPass ATMs.

In addition to CDs, Poppy Bank offers checking, savings, and money market accounts, personal and commercial lending, and credit cards.

Quorum Federal Credit Union

Quorum Federal Credit Union began in Chicago in 1934 as Kraft Employees Credit Union. In 2005, it took the name Quorum Federal Credit Union and expanded membership to additional employee groups, and in 2014, it launched its online banking services.

It has one service center at its headquarters in Purchase, NY, and another in Deerfield, Illinois. Additionally, customers have access to more than 85,000 ATMs nationwide and an online banking app.

Membership is available to employees of KraftHeinz, Mastercard, Philip Morris, and dozens of others. Those not employed by one of the partner groups still can join by becoming a member of the American Consumer Council.

PenFed Credit Union

Membership at PenFed Credit Union is available to anyone nationwide, including those in Guam and Puerto Rico. It also serves customers in Okinawa, Japan.

The credit union was formed in 1935 and has grown to more than 2 million members and more than $25 billion in assets. The credit union offers a full array of consumer banking options, including, checking, savings, credit cards, mortgages, auto loans, and more.

All banking can be done through its app or via online banking.

EFCU Financial

EFCU Financial was established in Baton Rouge, Louisiana, in the 1930s as the 13th federal credit union in the U.S. It began with 178 members and $941.70. After several name and affiliation changes since its beginnings, it took its current name in 2015.

The credit union has eight branches in the Baton Rouge area, but membership is available nationwide with online and mobile banking and access to shared branches through the CO-OP Shared Branch Network and ATMs through the Allpoint network.

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 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.

MAC Federal Credit Union

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.

CommunityWide Federal Credit Union

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.

Live Oak Bank

Live Oak Bank is a relative newcomer on the banking scene, opening in 2008. Since then, it has focused heavily on small business loans for niche industries, such as craft breweries, veterinary clinics, and solar energy companies. However, it’s been expanding into the personal banking scene, and it’s got plenty of savings offerings to like.

You can choose CDs with term lengths of six months to five years, as well as an online savings account.

Colorado Federal Savings Bank

Serving Colorado and the rest of the nation, Colorado Federal Savings Bank is headquartered in Greenwood Village. It opened in the 1990s as a savings institution and transformed into a non-branch direct banking platform after being acquired by new ownership in 2008.

Among the products offered are mortgages, commercial loans, savings accounts, and CDs. Customers can apply for a CD account online, choosing terms from 1-month to 5-years.

Interior Federal Credit Union

Based out of the U.S. Department of the Interior Building in Washington, D.C., Interior Federal Credit Union was established in 1935. Members can do their banking online, at over 5,500 shared branches nationwide, or more than 55,000 shared ATM locations nationwide.

Membership is available to individuals or the family of individuals employed by the DOI, one of its bureaus, or one of its contractors. Bureaus of the DOI include the National Park Service, Bureau of Reclamation, U.S. Geological Survey, Bureau of Indian Affairs, Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE), Bureau of Land Management, Office of Surface Mining, and U.S. Fish and Wildlife Service. Employees, volunteers, or partners of numerous other groups also are eligible for membership. A full list is available on Interior FCU’s website.

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.

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.