- Lock in a rate that won’t change for the term.
- Can sometimes find a higher rate than a traditional savings account.
- Might be able to renew the CD if you want to keep saving at a higher rate.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.
Updated April 2, 2024
Putting your money in a certificate of deposit (CD) can be one way to take advantage of a guaranteed yield for a set period of time. However, you might need to leave your money in the account if you want the largest benefit.
A one-year CD can provide you with a high yield but not force you to “lock up” your money for too long a time period. Here are some of the best 12-month CD rates.
Our top recommendations
Depending on your financial goals and preferences, there are a variety of one-year CDs with competitive rates. Here are some of our recommendations.
| Name | APY* | Min. deposit |
|---|---|---|
CIBC | 5.36% | $1,000 |
Bread Savings | 5.50% | $1,500 |
Marcus by Goldman Sachs | 4.90% | $500 |
Barclays | 5.00% | $0 |
My eBanc | 5.30% | $5,000 |
Quontic | 4.50% | $500 |
Forbright | 5.10% | $1,000 |
Synchrony Bank | 5.00% | $0 |
Discover | 4.90% | $2,500 |
Penfed | 4.65% | $1,000 |
CIBC: Best for smaller CD early withdrawal penalty
CIBC Agility 13 Month CD
CIBC Agility 13 Month CD
APY*
5.36%
Term
13 months
Min. deposit
$1,000
CIBC was founded in Canada in 1867, but it is a global institution that has banking centers across the U.S. and more than $975 billion in assets.
CIBC’s Agility CD product allows you to withdraw money from your account with a smaller early withdrawal penalty than you normally see. Many banks charge a penalty of 90 or 180 days, but CIBC’s penalty is 30 days. CIBC CDs are FDIC insured.
Bread Savings: Best for savers who want to auto-renew
Bread Savings 1 year CD
Bread Savings 1 year CD
APY*
5.50%
Term
12 months
Min. deposit
$1,500
Bread Financial, formerly known as Comenity and Alliance Data, considers itself a tech-forward company that specializes in offering savings products designed for those who want higher yields. The company focuses on online banking products, so has it has no physical presence to speak of, but it does have $21.60 billion in assets as of late 2023. Bread’s great one-year CD rate does come with a penalty for early withdrawal: An amount equal to 180 days of simple interest for CD terms of one to three years.
Bread Savings offers a slightly higher yield when you auto-renew. If you’re interested in automatically renewing your one-year CD, Bread Savings makes it easy. Bread’s CD are also FDIC insured.
Marcus by Goldman Sachs: Best for a guaranteed rate
Marcus 1-year CD
Marcus 1-year CD
APY*
4.90%
Term
12 months
Min. deposit
$500
Marcus is owned by the well-known bank Goldman Sachs and offers a variety of retail banking products, especially high-yield savings products. Marcus’s parent bank Goldman Sachs is a global investment bank that has more than $1.5 trillion in assets (with a “T”) and offices around the world.
Marcus offers a 10-day guaranteed rate for its CD, meaning that if rates head higher during the first 10 days and you’ve deposited your $500 minimum, your rate will bump up too. The penalties for early withdrawal from their one-year CD is an amount equal to 180 days of interest. Marcus’s CDs are FDIC insured.
Barclays: Best for beginning savers
Barclays 12 Month CD
Barclays 12 Month CD
APY*
5.00%
Term
12 months
Min. deposit
$0
Barclays, based in Great Britain, is one of the most well-known banks in the world although it also has a division in the United States. As a global bank, it has a global footprint and total assets of more than $1.9 trillion. It also offers a full suite of banking products in addition to CDs.
Barclays has no minimum deposit requirement. As a result, those who haven’t started saving yet, or who have a small amount can open a CD and get started. The penalty for early withdrawal for a CD with a term of less than two years is an amount equal to 90 days of interest.
CDs from Barclays are FDIC insured.
My eBanc: Best for those with more to save
My eBanc CD
My eBanc CD
APY*
5.30%
Term
12 months
Min. deposit
$5,000
My eBanc is a division of the Latin American Bradesco Bank, headquartered in Florida. My eBanc focuses mostly on savings products, like CDs. Bradesco Bank has offices around the world, and is considered one of Latin America’s largest financial institutions with nearly $3.75 billion in assets.
If you have more to save, you can open an account and get a competitive rate as long as you have at least $5,000. My eBanc also offers jumbo CDs. The penalty for early withdrawal is an amount equal to three months of interest on the withdrawn principal. My eBanc CDs are FDIC insured.
Quontic Best for easy account management
Quontic 1 year CD
Quontic 1 year CD
APY*
4.50%
Term
1 years
Min. deposit
$500
Quontic Bank started in New York as a community bank and is a designated Community Development Financial Institution. While physical branch locations are very limited, Quontic is accessible online from anywhere. Quontic has a little more than $561 million in assets.
Quontic makes it a point to offer online tools for easy account management. You can open an account quickly, and the bank offers live chat and other support options. Unfortunately, the information on penalties for early withdrawal was difficult to find online, including in fee schedules, but Quontic says there are penalties for early withdrawal. Quontic CDs are FDIC insured.
Forbright Bank: Best for those interested in sustainability
Forbright 12-Month CD
Forbright 12-Month CD
APY*
5.10%
Term
12 months
Min. deposit
$1,000
Forbright Bank focuses on sustainability as part of its portfolio and provides online access to a full suite of banking products. It features brick-and-mortar locations in Virginia and Maryland, that focus on the Washington, D.C., area. The bank has more than $6.5 billion in assets.
For those interested in sustainability, Forbright offers a chance to save with a bank that is working to divest itself of fossil fuels, while still offering competitive yields. Penalties for early withdrawal of the Fortbright CD are an amount equal to three months of interest on the withdrawn principal. Forthright CDs are FDIC insured.
Synchrony Bank: Best for IRA CDs
Synchrony 12-Month CD
Synchrony 12-Month CD
APY*
5.00%
Term
12 months
Min. deposit
$0
Synchrony is an online bank that focuses on high-yield savings products and credit cards.
Synchrony has a small physical footprint due to its online focus; however, the bank has nearly $113 billion in total assets.
Synchrony allows you to easily open an IRA CD so your earnings from your yield are tax-advantaged. It’s possible to earn that yield in an IRA CD with no minimum balance, although Synchrony recommends at least $5,000. For IRA CDs, you’ll be subject to IRA rules if you withdraw early, which are any earnings being taxed as regular income and a 10% penalty if you’re under 59.5 years-old (unless you are exempt according to the IRS). Synchrony CDs are FDIC insured.
Discover Bank: Best for those who want to create a CD ladder
Discover 12-Month CD
Discover 12-Month CD
APY*
4.90%
Term
12 months
Min. deposit
$2,500
Discover offers a wide variety of banking products, including credit cards and loans, in addition to high-yield savings products. Discover has some branches, but you can also bank at one of 60,000 ATM locations. Discover has a little more than $143 billion in total assets.
Discover offers a competitive rate for CDs, and the $2,500 minimum makes it a decent choice for setting up a ladder, if you have plans to take advantage of different maturities and access. The penalty for early withdrawal is an amount equal to six months of interest on the withdrawn principal for terms of one to four years. Discover’s CDs are FDIC insured.
PenFed Credit Union—Best for: Those who prefer a credit union
PenFed 1 Year CD
PenFed 1 Year CD
APY*
4.65%
Term
1 year
Min. deposit
$1,000
PenFed offers a full suite of banking and insurance products. It originally opened to serve the Pentagon, but is now available to everyone online. It has 2.9 million members and $35.4 billion in assets.
PenFed offers competitive rates for those interested in using a credit union rather than a bank. Membership requirements are relatively easy to meet, with anyone qualifying. The penalty for early withdrawal is the last 365 days of dividends earned. (Credit unions pay dividends instead of interest.) PenFed CDs are FDIC insured.
How we chose the best CD rates
We compared certificates of deposit based on the following criteria: APY, term, minimum deposit, fees and penalties for early withdrawal. We also took the search volume on the brand name or bank name, and the ease of getting the CD.
Ultimately, we looked for CDs that offer the most value to customers.
Choosing the best one-year CD: Where to begin
When choosing the best 12-month CD, start with your own goals and preferences. Consider what matters most to you, as well as compare yields. Some banks and credit unions offer different yields based on savings tiers, so make sure you qualify for the best-advertised rate.
One-year CDs have high yields right now and can help you get a better return on your cash. CDs are also safe places to keep your money: They are usually protected by FDIC or NCUA insurance, so you’re protected if the bank or credit union fails. And be sure to read the fine print: You might be subject to a penalty if you withdraw money early from a CD.
Pros and Cons of one-year CDs
Pros:
Cons:
- Penalties apply if you withdraw money before maturity.
- You might be subject to higher minimum deposits.
- In some cases, you’re only eligible for the highest advertised rate when you have a higher deposit.
Alternatives to a one-year CD
In some cases, a 12-month CD might not meet your needs. Here are some alternatives to consider:
- Different-term CDs: Many banks and credit unions offer terms ranging from three months to five years. If you want quicker access to your money, a shorter term might work better. You can also get a longer term if you think you can get a better return over time.
- High-yield savings account: Some banks and credit unions offer competitive online high-yield savings accounts. These might have rates similar to a one-year CD, without the penalties. Rates are variable, not fixed, though, and could drop lower at any time.
- Money market account: You can also get liquidity with a money market account, which might offer competitive rates. However, to get the best rates you might need a higher minimum deposit.
Frequently asked questions (FAQs)
What is the #1 bank in America?
The answer to this question depends on different measures. The #1 largest commercial bank by assets in the United States is JPMorgan Chase. However, Capital One has the highest score from J.D. Power for overall customer satisfaction.
Which bank has the best benefits?
Every bank offers different perks and you might look for something different than someone else might. Consider comparing several banks for perks including low or no fees, as well as competitive rates on deposit and loan products.
Which bank has the most complaints?
Using information from the FDIC, CFPB and Better Business Bureau, The Penny Hoarder found that Wells Fargo and Citibank had a large number of complaints against them. For overall customer satisfaction, J.D. Power ranked Truist and Wells Fargo near the bottom.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.