Best 1-year CD rates
In the years following the 2008 recession, putting money into savings accounts or certificates of deposit (CDs) typically provided minimal returns. But with the Federal Reserve raising interest rates numerous times since 2022 to fight inflation, banks have also largely increased savings interest rates for customers.
In particular, 1-year CDs are currently offering some of the highest rates among savings products right now. But you can easily find CD rates that are more than twice as high as the average; some are even more than three times as high.
Below are some of the best 1-year CD rates from CD providers, like banks and credit unions. These are among the top rates offered on CDs right now, and they offer a good mix of features as well.
Find out the top interest rates you could be earning on your savings here.
Best 1-year CD rates
The CDs below are listed in alphabetical order, with all rates current as of December 26, 2023:
Bask Bank: 5.40% APY
This online division of Texas Capital Bank offers CDs nationwide with competitive rates. For 1-year CDs, Bask Bank offers a 5.40% annual percentage yield (APY), with a $1,000 minimum deposit. The bank also offers one of the highest rates for savings accounts, with a 5.10% APY and no monthly account fees.
BMO Alto: 5.55% APY
BMO's online division, BMO Alto, has some of the best CD rates in the country. A 1-year CD with this financial institution has a 5.55% APY without requiring a minimum deposit. So if you're just starting out with CDs and don't want to deposit much, you might test the waters with a bank like this.
Bread Savings: 5.50% APY
Bread Savings, part of fintech company Bread Financial, offers some of the best CD rates, including for 1-year CDs. With a $1,500 minimum opening deposit, a Bread Savings 1-year CD has a 5.50% APY.
Loyalty also pays off here. If you're renewing a 1-year CD with Bread, you'll currently get a 5.55% APY.
Learn more about the best savings options for your money here.
Capital One: 5.25% APY
Compared to some of the other banks on this list, Capital One doesn't necessarily offer the best CD rates in terms of the highest payments, but they're still significantly higher than the average. A 1-year CD here carries a 5.25% APY, with no minimum balance requirements.
The reason why Capital One CDs are among the best is that the bank offers a wide range of CD terms and other financial products. So, if you want to build your CD savings in the same place where you manage other areas of your finances, Capital One could be a good choice. The bank also has some physical branches for those who prefer to bank in person.
First Internet Bank: 5.35% APY
Another great option is First Internet Bank, which offers a 5.35% APY on a 1-year CD, with a $1,000 minimum deposit. This bank also has a wide range of financial products, such as health savings accounts and personal loans. So, if you want to open more than one type of account while opening a CD, First Internet Bank might make sense for you.
Lending Club: 5.55% APY
While Lending Club has a higher minimum opening deposit for CDs, requiring at least $2,500, it offers one of the best 1-year CD rates with a 5.55% APY. Lending Club also offers a wide range of financial products, such as personal loans and business loans, so it could be a good one-stop shop for some customers.
Synchrony: 5.30% APY
Synchrony offers a 1-year CD with a rate of 5.30% APY and no minimum balance. And, the bank also has a whole host of other attractive financial offerings.
For example, Synchrony's no-penalty 11-month CD has a 4.50% APY. So, if you want a CD for nearly a year but aren't sure you can commit, a no-penalty CD can help you earn almost as much without the risk of forfeiting a lot of interest due to an early withdrawal.
The bottom line
Opening one of these CD accounts with the best rates can help you earn more interest while managing your finances. However, be sure to compare providers to see what works best for your situation, such as looking at penalties and different account types, along with checking current rates.
