Best 1-Year CD Rates of September 2024: Secure Savings for One Year

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The best 1-year CD rate is 5.04% APY from Lafayette Federal Credit Union. You can open an online CD if you do not live near a branch in Maryland, Virginia, or Washington, DC.

The average rate for a 1-year CD in the U.S. is 1.88% APY (Annual Percentage Yield) according to the FDIC. However, the best online banks and credit unions pay well over 5% APY on a 1-year CD.

We check rates daily to find the best rates for 1-year terms. Here are our recommendations for the best 1-year CDs.

Best 1-Year CD Rates

• Lafayette Federal Credit Union 1 Year Certificate: 5.04% APY
• Connexus Credit Union 1 Year Share Certificate: 4.91% APY
• Limelight Bank 1 Year Online CD: 4.90% APY
• EagleBank 12 Month CD: 4.90% APY
• Bread Savings 1 Year High-Yield CD: 4.90% APY
• TAB Bank 1 Year CD: 4.85% APY
• CIBC Agility 1 Year CD: 4.81% APY
• America First Credit Union 1 Year Certificate: 4.80% APY
• BMO Alto 1 Year High Yield CD: 4.75% APY
• MYSB Direct 1 Year CD: 4.75% APY

Compare the Best 1-Year CDs

The best CD rates for 1-year terms can be found mostly through online banks, although some credit unions also offer high rates. We specify if there's other reasons why a particular CD stands out. For example, some CDs have low minimum opening deposits, low early withdrawal penalties, or even both.

1-Year CD Reviews

These are our picks for the best 1-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you're worried about bank failures, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Lafayette Federal Credit Union 1 Year Certificate

Lafayette Federal Credit Union Certificates pay high interest rates overall, and the credit union compounds interest quarterly. You also only need $500 to open an account. 

You'll need to become a member to open a certificate. You may join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership. 

APY for a 1-year CD: 5.04% APY

1-year CD early withdrawal penalty: 180 days of interest

Connexus Credit Union 1 Year Share Certificate

Connexus Credit Union offers a strong rate on its 1-year share certificate. It also offers a jumbo CD version for all of its regular share certificates; if you put $100,000 into your 1-year CD, you'll earn a higher interest rate.

Connexus Credit Union is a credit union that anyone in the U.S. can join by donating $5 to become a member of the Connexus Association. You can also join by living in certain parts of Illinois, Minnesota, Ohio, and Wisconsin, or working for or being affiliated with certain groups. 

Connexus requires a high minimum opening deposit of $5,000; if you're planning on opening a CD with less money, you might want to consider another option.

APY for 1-year CD: 4.91% APY

1-year CD early withdrawal penalty: 90 days of interest

Connexus Credit Union Review

Limelight Bank 1 Year Online CD

Limelight Bank, an online division of CCBank, offers a 1-year CD with a high interest rate. It also has a great interest rate on an 18-month term. The Limelight Bank CD may be a good choice if you'd like to open a CD with standard-to-low early withdrawal penalties.

You'll need at least $1,000 to open a CD. Some of our other picks let you open an account with $500 or less.

APY for 1-year CD: 4.90% APY

1-year CD early withdrawal penalty: 90 days of interest

EagleBank 12 Month CD

EagleBank CDs offers a high 1-year CD rate. It also offers one of the best 6-month CD rates.

EagleBank has locations in Maryland, Virginia, and Washington, DC, so it can be a great local banking option if you live in these areas. You can also open online CDs ranging from 6 months to 18 months.

You'll only be able to deposit a maximum of $500,000 into a CD. Another downside to banking with EagleBank is that its mobile banking app has lackluster ratings in both the Google Play and Apple stores.

APY for a 1-year CD: 4.90% APY

1-year CD early withdrawal penalty: 3 months of interest

Bread Savings 1 Year High-Yield CD

Bread Savings has a strong rate on its 1-year CD. It also compounds interest daily, which could make a difference depending on how much you have in your CD.

This CD comes with a $1,500 minimum opening deposit, which is a little higher than average. If you don't plan to put a lot of money in your CD, you might want to consider one of our other options.

APY for 1-year CD: 4.90% APY

1-year CD early withdrawal penalty: 180 days of simple interest

Bread Savings Review

TAB Bank 1 Year CD

TAB Bank offers strong rates for several CDs, including a 1-year CD. If you're hoping to open several CDs with the same bank, TAB Bank might be a good choice for you.

TAB Bank charges a $1,000 minimum opening deposit. This is pretty standard for CDs, but you can still find CDs that have lower minimum opening deposits if you're hoping to use less money to open a CD.

APY for a 1-year CD: 4.85% APY

1-year CD early withdrawal penalty: 90 days of interest

TAB Bank Review

CIBC Agility 1 Year CD

CIBC Bank USA, the U.S. division of the Toronto-based bank Canadian Imperial Bank of Commerce, has a competitive CD rate on its 1-year term. The bank pays slightly lower rates on balances under $25,000 on some terms, but with its 1-year term, you'll earn the same high rate regardless of your balance.

CIBC Bank USA has an online savings account and CDs that you can open from anywhere in the U.S. To open a checking account or money market account in the U.S., you must live in a state that has a banking center. Banking centers are located in select cities in California, Florida, Illinois, Michigan, Missouri, and Wisconsin.

APY for a 1-year CD: 4.81% APY

1-year CD early withdrawal penalty: 30 days of interest

CIBC Bank USA Review

America First Credit Union 1 Year Certificate

America First Credit Union has good rates on several short-term CDs, including its 1-year CD. It also only requires you have $500 to open a CD, which is lower than the average minimum opening deposit.

This credit union is a great choice if you live in certain areas in the Western United States. Membership is available to people who live, work, study, worship, or volunteer in select counties of Arizona, Idaho, New Mexico, Nevada, Oregon, and Utah. You're also eligible to join if you work for a company on its Select Employer Group list or are a member of an affiliated association.

APY for a 1-year CD: 4.80% APY

1-year CD early withdrawal penalty: 60 days of interest

America First Credit Union Review

BMO Alto 1 Year High Yield CD

BMO Alto has strong rates for its 1-year CD. It also requires $0 for a minimum opening deposit, which is very rare for CDs.

BMO Alto only offers savings accounts and CDs. If you're also looking to open a checking or money market account, consider other banks.

APY for a 1-year CD: 4.75%

1-year CD early withdrawal penalty: 180 days of interest

BMO Alto Savings and CD Accounts

MYSB Direct 1 Year CD

MYSB Direct offers several good rates on long-term CDs, but its 1-year CD also offers high rates. If you're planning on opening multiple CDs at the same bank, MYSB Direct might be a good choice for you.

MYSB Direct charges very high early withdrawal penalties. If you think there's a chance you'll need to withdraw your money before your term length is up, you'll probably want to go with another bank.

APY for a 1-year CD: 4.75% APY

1-year CD early withdrawal penalty: 90 days of interest or all of the interest earned, whichever's greater

Bank Trustworthiness and BBB Ratings

We've compared each bank's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:

The Better Business Bureau gives TAB Bank an A rating because government action has been taken against the bank.

MYSB Direct's parent bank, M.Y.Safra Bank, has an NR rating from the BBB because the BBB doesn't have enough information to rate the bank.

EagleBank paid a civil penalty of $10 million in a settlement in 2022. The Securities and Exchange Commission accused the bank and former CEO and chairman Ronald D. Paul of making false and misleading statements about party loans relating to Paul's family trusts.

In 2021, CIBC paid $125 million in Canadian dollars in a settlement. The settlement says that CIBC misrepresented information about some of its investments in quarterly financial statements, among other statements. CIBC denies that it made these misrepresentations.

In 2022, TAB Bank entered an Assurance of Discontinuance with the State of Iowa. According to the settlement, the State of Iowa accused TAB Bank of charging Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if it provides a 30-day notice to the state and follow the state code.

BMO has been involved in one recent public controversy. In 2022, a Minnesota jury ordered the bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO bought M&I Bank in 2011. 

What Influences the Best 1-Year CD Rates

Role of the Federal Reserve

The Federal Reserve is the central bank of the United States. One of its responsibilities is managing the federal funds rate. A committee meets at least eight times per year to discuss potential changes to rates.

Changes in the federal funds rate impact interest rates on banking products. CD rates go up during rate hikes and drop during rate cuts.

Market Fluctuations

Market fluctuations can also influence whether specific terms are more competitive than usual. Currently, short-term CD rates are higher long-term CD rates. If you compare our top 1-year CD rates with the best 5-year terms, the former is higher.

The reason why short-term CD rates are the most competitive terms right now is because Fed rate cuts are likely to happen in the future. The Fed wants inflation to get closer to 2% before cutting rates, though. To stay up to date on the Fed's decisions, pay attention to upcoming Fed meetings.

Competition Across Institutions

Banks also have their own criteria for setting CD rates. You might see banks with CD specials or promotions on 1-year terms. These promotions are sometimes limited to certain customers. You also might need to deposit money from another bank (often referred to as"new money" by banks).

How to Find the Best 1-Year CD for You

Of course, interest rates are important when finding the right 1-year CD. But you should also think about the minimum opening deposit — if you don't have enough money to open the CD that pays the highest rate, it's still worth opening a CD that pays a little less but has a minimum you can afford.

You should also think about the early withdrawal penalty. If a bank charges high penalties for taking money out early from a 1-year CD, it could wipe out any earnings you've accumulated. If you're worried about needing money early, you may prefer a no-penalty CD with a 1-year term — they aren't super common, but they do exist.

Pros and Cons of 1-Year CDs

Secure the Best Returns on a 1-Year CD

One-year CDs are paying great rates right now, and you'll earn that rate for the entire year. You don't have to worry about your rate decreasing — you know how much you're going to earn. The flip side is that you won't get to benefit from a higher rate if the bank increases its 1-year rates, but it's unlikely that CD rates will go up in 2024 anyway.

Although 1-year CDs are paying better rates than high-yield savings accounts right now, they also come with less flexibility. Savings accounts allow you to deposit more money at any time, while CDs don't let you put more in after making your initial deposit. You'll also pay a penalty if you withdraw funds early from a CD. If you decide to withdraw money early, most banks require you to take out the full amount, so you can't leave any in the account to continue earning interest.

CDs come with much less risk than investing your money in the stock market, because you have a guaranteed rate of return. It's possible you could earn less than with the stock market, but the market is unpredictable. Because one year is a relatively short amount of time, you may want to go with the safer choice by opening a CD instead.

Alternatives to a 1-Year CD

1-Year CD vs. Shorter-Term CD

You might prefer a 3-month CD or 6-month CD if you can't part with your money for a full year. The good news is that rates are high on short terms right now, too — the best 6-month CD rates are comparable to the best 1-year CD rates.

1-Year CD vs. Longer-Term CD

You may want to put money into a longer CD term if you know you won't need it for more than a year. Plenty of online institutions are paying great rates on terms up to five years. However, the best 1-year CD rates are higher than rates on longer terms right now.

Still, you may be interested in building a CD ladder, which involves splitting your money into multiple CD terms so you can access it at different times. For example, you could open a 1-year, 3-year, and 5-year CD, and you'd have access to your money and earned interest after one, three, and five years. This helps you avoid some risk. If you put all of your money into a 1-year CD with plans to put it back into another 1-year CD after the term ends, 1-year rates may be lower by then. But building a ladder, you lock in high rates now before rates have the potential to drop.

1-Year CD vs. High-Yield Savings Account

One-year CDs are paying even better rates than the best high-yield savings accounts. But you still might prefer the latter for two reasons: You can deposit money at any time, and you can withdraw money without paying a penalty. When trying to decide between CDs versus high-yield savings accounts, remember that both are great savings tools, so there's no reason you can't open both accounts to save for different goals.

1-Year CD vs. Money Market Account

A money market account is similar to a savings account, except it usually comes with some perks you'd get with a checking account, such as an ATM card, debit card, or paper checks. Basically, it makes it easier to access your money. The best money market accounts pay great rates, but they're still not as high as the best 1-year CD rates. A money market account could be a good fit if you want easier access to your savings, though, especially since CDs don't allow you to withdraw funds without paying a penalty.

1-Year CD FAQs

Why You Should Trust Us: Expert Advice on Choosing the Best CD

To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:

BI

How can you be sure you're picking the right bank?

Tania Brown, CFP® professional and vice president of coaching strategy at OfColor, says the most important thing is FDIC insurance, which protects your money if the bank were to collapse. For credit unions, the equivalent is NCUA insurance. Next, she says, consider the experience you want to have with your bank: Do you want to walk in and talk to a person? Then you need a bank with a local branch. Are you fine never speaking to someone in person? Then an online bank will work for you. Do you write checks (or not)? Then you need an account that comes with checks.

Sophia Acevedo, banking editor for Business Insider, adds that it's a good idea to include costs in your list of priorities. For instance, is there a monthly fee for the account you want? If so, what are the requirements to waive it — and can you meet them? If it's important that you earn interest, you'll want to choose a bank and an account that pays a higher interest rate than the average bank account.

How do you choose between all the available CD terms?

Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life", says you should start by deciding when you need the money, then looking at available rates for CDs with similar timing.

Knowing how you'll use the money you plan to put in a CD is central to the one you choose, says Mykail James, MBA, certified financial education instructor at BoujieBudgets.com. Perhaps it's a house fund — in that case, if you know that you want to buy a house in two years, you'll need to make sure your CD term ends by then.

When do you use a CD instead of a high-yield savings account or money market account?

Brown says you should know two things to help make this decision: how much money you'll be putting in, and how much you plan to interact with that money. If you're going to need to make transactions before the term of a CD ends, you'll have to choose a high-yield savings or money market account.

Acevedo adds that both the high-yield savings account and money market account can be good options for an emergency fund or short-term savings goals. The best savings accounts tend to offer strong interest rates, while money market accounts typically offer more access to your money, like paper checks or debit cards.

Our Methodology: How We Chose the Best 1-Year CDs

Business Insider's personal finance team regularly monitors 1-year CD rates at over 60 banks, credit unions, and banking platforms. We've also reviewed CDs at these institutions using our  bank account methodology to find the most well-rounded banking options.

For each CD, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics. ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

• Bank accounts
• Savings and CD rate trends
• Budgeting
• Saving
• How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

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Kit Pulliam

Banking reporter

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

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Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

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