The 9 Best One-Year CD Rates of 2019
Maximize your short-term savings
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Savings accounts offer a safe way to grow your money, but if you’re looking for a higher annual percentage yield, you might prefer a certificate of deposit instead. CD accounts can offer competitive rates for savers, especially during a rising interest rate environment. And you can enjoy that growth without the market risk that accompanies investing in stocks or mutual funds.
In addition to potentially higher rates, CDs differ from savings and money market accounts in another critical way. While these other accounts allow you to make withdrawals at virtually any time, CDs are time deposits that you leave untouched until a designated maturity date. The money you deposit in them grows with interest over time, and once the CD reaches its maturity, you can withdraw your initial deposit along with the interest you’ve earned. Withdrawing money from a CD ahead of its maturity typically means paying a penalty, which can either be a flat fee or a percentage of the interest earned.
The good news is that CDs can offer flexibility, as they can come with a wide range of maturity terms. It’s possible to get CDs with terms as short as 30 days, while others may have terms extending up to 10 years. Out of those different options, a one-year CD may be appealing if you need a place to keep your savings in the short-term, while still earning a stellar rate.
But which CDs can help you earn the most interest based on your goals and deposit amount? If you’re in search of a one-year CD that fits your savings needs, consider these eight options that offer the best rates around.
Capital One 360’s 12-month CD ranks as the best one-year CD overall for two reasons. First is the 2.40% APY savers enjoy; second is the $1 minimum deposit requirement.
These CDs offer an ideal combination of flexibility and rates for who may just be getting started and are unable to meet the $2,500 or $5,000 minimum that other CDs require. You can also decide when and how your CD interest is paid out, either monthly or at the end of the maturity term, giving you even more control of your savings.
There’s no fee to open or maintain a Capital One 360 12-month CD, so there’s nothing to nibble away at your interest earnings. Your account is safe from market risk and, like the other bank-issued CDs included in this list, you also have the reassurance of FDIC-insured protection.
Credit unions can be a great alternative to banks for CD savers. Not only do credit unions tend to charge fewer fees than traditional banks, but they can also offer better rates on deposit accounts for their members.
That’s the case with the Connexus Credit Union 12-month share certificate. This credit union CD currently has a 2.20% APY, making it one of the highest rates you’ll find for a one-year CD. Your deposits are insured by the National Credit Union Association for up to $250,000, which operates like the FDIC, but for credit unions only.
There are two things to note with this CD, however. First, you’ll need at least $5,000 to open one, which could put it out of reach for some savers. Second, you’ll need to be a Connexus Credit Union member to open a CD account. The silver lining is that it takes just a few minutes to apply for membership and open your share certificate online.
If you’re interested in opening a one-year CD with a credit union but you don’t have $5,000 for the initial deposit, you might consider Alliant Credit Union instead. You can open any of Alliant’s credit union certificate accounts, including 12-month certificates, with just $1,000.
You’ll earn a solid 2.40% APY on deposits and one-year jumbo CDs.
Dividends compound monthly and at maturity. There are no fees to open and maintain a certificate account and just like with Connexus CDs, your deposits are insured by the NCUA up to $250,000.
Want to learn more? Check out our full review of Alliant Credit Union.
Discover Bank’s high-yield CD offerings include a 12-month CD with an APY of 2.40%. The rates are competitive compared to the other CDs featured here, and at $2,500, the opening deposit may be more achievable for some savers.
It’s easy to open and fund your account online, especially if you already have a Discover bank account. You can transfer money from your checking or savings to fund your CD. If you don’t already bank with Discover, it’s just as simple to schedule an online or phone transfer from your current bank into your new CD.
These CDs are designed for general savings but Discover also offers a one-year IRA CD if you’re interested in stashing away money for retirement. The same great 2.40% APY applies to these individual retirement account CDs.
Remember, with a traditional IRA CD, contributions are tax-deductible. There’s no deduction for Roth IRA CDs, but you can make qualified withdrawals 100% tax-free.
If you want more information, you can also read our full review of Discover Bank.
Launched early in 2018, Citizens Access is the online-only division of Citizens Bank. Its one-year CD currently comes with an impressive 2.50% APY, which you can take advantage of if you have $5,000 or more to save.
Your deposit is FDIC-insured and, like Capital One 360, you have some flexibility regarding how the interest is paid out. Interest payments can be credited to your CD account or transferred to a linked bank account, whichever you prefer.
It takes around five minutes to open your one-year CD account online. If you’re interested in building a CD ladder with multiple accounts, something Citizens Access encourages, you can also open high-yield CDs with terms ranging from six months up to five years.
TIAA wants to ensure that CD savers always get superior rates on deposits. They do that by offering the Yield Pledge guarantee, which ensures that you always enjoy yields in the top 5% of competitive accounts.
The one-year CD offering, for example, currently has an APY of 2.40%. On a $50,000 opening deposit, that adds up to $1,363 in interest earnings over 12 months.
TIAA makes rolling your savings and interest into a new CD easy with automatic rollovers. And in case you’d rather close your CD instead, you’ll get an alert letting you know that you’re nearing your maturity date 20 days ahead of schedule.
Also, check out our full review of TIAA Bank.
Some CDs are used just for retirement savings, but not every bank offers them. Ally is one that does and the bank’s one-year high-yield IRA CDs comes with a 2.50% APY.
There’s no minimum deposit required to open an Ally high-yield IRA CD. There are also no monthly fees and you can roll your CD over automatically each year. In addition to Roth and traditional IRA CD options, Ally also offers a SEP IRA CD for self-employed savers. That means you don’t have to miss out on tax-advantage retirement plans if you don’t have a 401(k).
Your deposits are FDIC-insured, the same as any other CD. If you want to keep some of your savings in a CD for another savings goal, such as paying for a dream wedding or planning a vacation, you can have an IRA CD and a regular high-yield CD with Ally at the same time. Best of all, all you need is a few minutes to open and fund your accounts online.
If opening a CD with $5,000, $2,500 or even $1,000 is still a stretch, Marcus by Goldman Sachs’ one-year CD might be appealing. You can open this CD with as little as $500 and get a 2.40% APY in exchange for your efforts.
To make sure you lock in the best rate possible on your CD, Marcus offers a 10-day rate guarantee. You earn the highest APY available for your CD as long as you fund your CD with $500 or more within the first 10 days of opening it.
There are no transaction or monthly fees to worry about and Marcus by Goldman Sachs is FDIC-insured. If you think you might need to withdraw money from your CD early, you may want to consider a Marcus no-penalty CD instead.
With these CDs, the minimum deposit is still $500, but you have a 13-month term instead of 12. These CDs also have a lower APY of 2.15%. But, unlike the regular one-year Marcus CD, you can withdraw money at any time from this one without forfeiting any of your interest earnings.
Want some more information? Read through our full review of Marcus by Goldman Sachs.