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If you’re looking for a simple way to grow your savings, 1-year CDs are a great option. In this article, we’ve rounded down some of the best 12-month CD rates. We’ve focused on banks and credit unions that have low minimum deposit requirements, no extra fees, and are available nationwide. We’ve also included CDs with terms of around one year, like 10-month CDs.
Editor’s Pick
Discover® Bank, Member FDIC offers a 12-month CD with a current APY of %. Discover remains one of the world’s most trusted financial brands and offers every other deposit product you need, including savings, checking, and IRAs. All deposits are FDIC insured up to the $250,000 maximum.
- Current APY – %
- Minimum Deposit Requirement – $2,500
- Early Withdrawal Penalty – 6 months of simple interest
The Rest of the Best 12-Month CD Rates
1. GreenState Credit Union via Raisin
Certificate of Deposit
Member NCUA
APY
%
Term
10 Months
Min. Deposit
$1
Our Rating: 4.7
2. BrioDirect
Certificate of Deposit
Member FDIC
APY
%
Term
12 Months
Min. Deposit
$500
Our Rating: 4.6
3. BMO Alto
Certificate of Deposit
Member FDIC
APY
%
Term
12 Months
Min. Deposit
$0
Our Rating: 4.8
4. Capital One 360
Certificate of Deposit
Member FDIC
APY
%
Term
12 Months
Min. Deposit
$0
Our Rating: 4.5
5. Ally Bank
Certificate of Deposit
Member FDIC
APY
%
Term
12 Months
Min. Deposit
$1
Our Rating: 4.5
Highest 12-Month CD Rates by APY
If the only thing you’re after is the highest possible rate, here are the 25 best 12-month CD rates we could find out of more than 100 reviewed.
142 Results
12-Month CD vs High Yield Savings Account
When you look at the interest rates on this page, you may be asking “Why not just keep my money in an online savings account?” High-yield savings accounts have almost identical interest rates to 12-month CD rates. Is there a benefit to locking your money away for one year vs. earning the same interest in a liquid account?
The primary benefit of the one-year CD is in fact, locking your money away. Interest rates are not guaranteed with an online savings account. The money you have saved can be earning 1.30% APY today, and 1.15% APY tomorrow. Locking in a rate means for one full year, you know exactly what you’re getting. For the same reason I pre-pay for my heating oil every year, I also tuck away money in CDs.
How We Chose the Best 12-Month CDs
There were three primary factors that went into rating the best 12-month CDs we could find.
- Interest Rate (APY) – The most important factor in finding a good CD is the interest rate. The difference of just one percent can be thousands of dollars if you’re able to deposit the FIDC-insured maximum.
- Minimum Deposit Requirement – The best CDs are the ones that do not require a lot of money to open. The highest deposit minimum on our list is $2,500, which is still quite reasonable.
- Early Withdrawal Penalty – No one opens a CD with the intent of pulling the money out before it matures, but life happens. Some 12-month CDs will include a 12-month interest penalty, and none of those CDs were included here.
Banks we included in our review are as follows: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Credit Human Federal Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, GreenState Credit Union, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, mph.Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Ponce Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
Frequently Asked Questions (FAQ)
Can I Add Money to a CD After I Open It?
After you have opened a CD, you cannot increase or decrease the amount of the deposit (unless it’s a very rare CD that allows it). If you have to close the CD early, you will sacrifice some of the interest earned.
Do I Owe Taxes on the Interest Earned in a 12-month CD?
Yes, you do. Depending on when the interest is added to your account, you can expect to receive a 1099-INT form that will detail the interest paid to you on your CD.
Can I Open Multiple CDs from the Same Bank?
Yes. You can even open multiple CDs of the same length from the same bank. However, the FDIC insurance limit is per depositor (per account type), not per CD so when you open many CDs from the same bank, your total insurance for all CDs will be $250,000.
Final Thought on the Best 12-Month CDs
Opening a 12-month CD in a high-rate environment (like the one we’re in now) is always a smart financial decision. Even smarter is creating a CD ladder to ensure that if you need liquidity, you’ll have it in a short amount of time.
All of the best 12-month CDs found above are 100% risk-free when you stay under the $250,000 FDIC-insured maximum so if you’re someone with more than that amount to deposit, make sure you do so by utilizing multiple institutions.
Editor’s Note: Make sure to check your local banks for the best 12-month CD rates as well. Sometimes the national brands can’t match what your bank down the street can provide.