Certificates of deposit (CD) are a type of deposit account, typically offered by banks and credit unions, that usually offer higher interest rates than your average savings account. That’s because CDs hold savers accountable to a certain term (usually anywhere between seven days and 10 years) during which time the account holder is unable to touch the funds. Most, though not all, accounts charge a penalty for withdrawing that money before the end of your CD’s term, also known as its maturity date.
Current 1 year CD rates for our top picks*
- CFG Bank: 5.05% APY
- Quontic Bank: 5.30% APY
- Bethpage Federal Credit Union: 5.00% APY
- Limelight Bank: 5.25% APY
- BrioDirect: 5.35% APY
- BMO Harris: 5.10% APY
- Barclays Bank: 5.00% APY
- Bread Savings: 5.35% APY
- Synchrony Bank: 4.80% APY
- VIO Bank: 5.00% APY
*Rates above were last updated July 25, 2023
The 10 best 1-year CD rates
Here is our list of the best one-year CDs according to Fortune Recommends editors. Note: Minimum deposit requirements, APYs, and other numbers in our list are up to date as of June 5, 2023, but are subject to change.
1. CFG Bank: For savers who want a high APY and a wider product selection
Key numbers
Minimum opening deposit: $500
1-year APY: 5.28%
Penalty: 90 days’ worth of simple interest
Why we picked it
CFG Bank, a Maryland-based bank, took a top spot on our list for its one-year CD, which offers a 5.28% APY, over three times the national average for one-year CDs. The minimum opening deposit for this account is on the lower end compared to other CDs in the space, and interest is compounded daily. Customer service representatives can be reached by telephone Monday through Friday, 8:30 a.m. to 5 p.m. ET; customers can also contact CFG 24/7 via email or its online and mobile banking platforms.
2. Quontic Bank: For the saver who wants all of the customer service options
Key numbers
Minimum opening deposit: $500
1-year APY: 5.15%
Penalty: The penalty will be equal to the interest for the full length of the stated term.
Why we picked it
Quontic Bank is a digital bank that first started as a community bank in New York City in 2009. It offers a number of checking accounts, savings accounts, and mortgage products. Quontic’s 1-year CD made our list for its competitive APY, medium-range opening deposit, and daily compounding frequency. Customers can contact a customer service representative via live chat, email, and telephone Monday through Friday between 9:00 a.m. and 6:00 p.m. ET.
3. Bethpage Federal Credit Union: For the saver who prefers a credit union over a big bank
Key numbers
Minimum opening deposit: $50
1-year APY: 5.00%
Penalty: The penalty for one-year terms is equal to 90 days worth of dividends on the principal amount withdrawn.
Why we picked it
Bethpage Federal Credit Union is a New York–based credit union that offers a number of financial products including checking accounts, money market accounts, credit cards, and more. There are more than 30 branch locations around the New York-area. Its one-year CD made our list for its relatively low minimum deposit and high APY. Plus, interest on this account compounds daily. Customers can ask questions about their account by calling Bethpage via phone on weekdays between 7:30 a.m. and 7:00 p.m., and on Saturdays between 8:00 a.m. and 2:00 p.m. ET.
4. Limelight Bank: For savers who don’t need extended customer service hours
Key numbers
Minimum opening deposit: $1,000
1-year APY: 5.25%
Penalty: One-year CD accounts are subject to an early withdrawal penalty equal to 90 days’ worth of interest.
Why we picked it
Limelight Bank’s one-year CD tied with one other bank and made our list for having one of the highest APYs on our list at 5.10%—more than three times the national average. This account does require a higher minimum opening deposit at $1,000. Interest on this account compounds daily. One potential drawback for savers who want to rollover their CD after a year may be Limelight’s limited CD terms. Currently this bank only offers four term lengths ranging from 6–36 months. Limelight representatives are available to assist customers via email and telephone, Monday through Friday between 8:30 a.m. to 5:00 p.m. MT.
5. BrioDirect: For savers on the hunt for one of the most competitive APYs
Key numbers
Minimum opening deposit: $500
1-year APY: 5.25%
Penalty: 90 days’ worth of interest
Why we picked it
BrioDirect is an online bank that is a sub-brand of Webster Bank. It offers just one type of product: high-yield CDs with terms ranging from 30 days to 60 months. BrioDirect’s one-year CD made our list for having the highest APY for one-year terms. At 5.25%, this CD boasts an APY that’s over three times the national average. Interest on these accounts compounds daily. Brio customer service representatives can be reached via phone Monday through Friday from 8:00 a.m. until 8:00 p.m. ET. They can also be reached on Saturdays between 8:30 a.m. ET and 3 p.m. ET. The bank can also be reached via mail at its Jericho, N.Y., business address.
6. BMO Harris: For savers who want a high APY and have more than $1,000 available to lock up in a CD
Key numbers
Minimum opening deposit: $1,000
1-year APY: 5.10%
Penalty: One-year CD accounts are subject to an early withdrawal penalty equal to 180 days’ worth of simple interest.
Why we picked it
BMO Harris’ one-year CD had one of the highest APYs on our list at 5.10%. This account came in at number six for its higher minimum opening deposit. At $1,000 to start, this CD is likely better suited for more established savers. Interest on this account compounds daily, and BMO offers a wide range of other CD terms, from three months to 60 months. BMO Harris representatives are available to assist you via telephone from 7:00 a.m. to 10:00 p.m. CT on weekdays and 8 a.m. to 8 p.m. on Saturdays and Sundays. The bank also offers a contact form for email support on its website.
7. Barclays Bank: For the saver who has never seen the inside of their bank’s branch
Key numbers
Minimum opening deposit: $0
1-year APY: 4.80%
Penalty: For one-year terms, the penalty is 90 days’ simple interest.
Why we picked it
Barclays is a U.K.-based bank that operates its U.S. accounts solely online; U.S.-based account holders will need to do all of their banking on the Barclays website or through the mobile app. Interest on Barclays’ one-year CDs is compounded daily, and there is no minimum opening deposit, which leaves it up to the account holder to decide how much to put away. The good news: Customers can contact representatives for support 24/7.
8. Bread Savings: For savers with a little more bread
Key numbers
Minimum opening deposit: $1,500
1-year APY: 5.20%
Penalty: 180 days’ worth of simple interest
Why we picked it
Bread Savings is an online-only bank that’s part of the Ohio-based financial services company Bread Financial. The bank offers just two types of deposit accounts: high-yield savings accounts and CDs. Bread’s one-year CD made our list for its competitive APY and daily compounding frequency. This account does require a minimum opening deposit of $1,500, which could be more than some savers are able to contribute. Bread Savings does not have any brick-and-mortar locations, but its customer service hours for phone inquiries are weekdays from 7 a.m. CT to 9 p.m. CT. Representatives can also be reached on weekends between 9 a.m. CT and 5 p.m. CT.
9. Synchrony Bank: For savers who are just getting started
Key numbers
Minimum opening deposit: $0
1-year APY: 4.75%
Penalty: There is an early withdrawal penalty applied to the amount of principal withdrawn equal to 90 days’ simple interest.
Why we picked it
Synchrony Bank doesn’t have any brick-and-mortar locations, so it may not be for those who prefer face-to-face service. However, its 1-year CD may appeal to new savers who haven’t built up huge savings yet, since it doesn’t require a high minimum opening deposit. Interest on these accounts is compounded daily, and savers can do all of their banking online or via mobile app. Synchrony customers also have the option of withdrawing interest they earn on their account at any time.
Customer service representatives can be reached via chat and phone. Automated service is available via phone 24 hours a day, seven days a week. Representatives are available Monday through Friday from 8:00 a.m. until 10:00 p.m. EST and weekends from 8:00 a.m. to 5:00 p.m. EST.
10. Vio Bank: For the saver who prefers a more lenient withdrawal penalty—just in case
Key numbers
Minimum opening deposit: $500
1-year APY: 4.65%
Penalty: The penalty for making an early withdrawal is equal to 1% of the amount withdrawn, plus a $25 fee.
Why we picked it
Vio Bank’s one-year CD boasts an APY of 4.65% for a minimum opening deposit of $500. While we have other accounts on our list with similar APYs and opening deposits, Vio Bank’s early withdrawal penalty is more lenient than others: just 1% of the amount withdrawn and a $25 fee. Vio’s customer service representatives are available via phone from 7:00 a.m. through 9:00 p.m. CT Monday through Friday; 8:00 a.m. until 6:00 p.m. CT on Saturday; and 12 p.m. until 4 p.m. CT on Sunday. Representatives can also be reached via chat on the bank’s website.
What is a 1-year CD?
Banks and credit unions typically offer a wide range of CD terms. One-year CDs require account holders to deposit their money in one lump sum and leave their funds untouched for 12 months. After that, the CD has officially reached maturity and the account holder can withdraw funds (plus any interest accrued) or roll over those funds into a new CD.
CDs with shorter terms can be a flexible option for savers who are not playing the long game and don’t want to tie up their funds for years on end, but the tradeoff is often that accounts with shorter term lengths tend to have lower APYs.
What are the different types of CDs?
Aside from varying term lengths, some CDs come with unique rules or features that may be better suited for you and your savings goals. A few common CD types include:
- High-yield CD: A CD that offers a higher-than-average APY.
- Jumbo CD: In exchange for a higher interest rate, these CDs require higher minimum deposits than standard CDs—usually $100,000 or higher.
- Bump-up CD: When interest rates increase, a bump-up CD gives account holders the option to increase their CD’s APY as the account continues to mature.
- Add-on CD: These CDs give you the option to deposit additional funds in your CD after you’ve made your initial deposit.
- No-penalty CD: These CDs won’t charge you a penalty for withdrawing funds before your CD matures.
As you’re weighing your options, consider all of the perks of a CD account, as well as any possible penalties associated with each account. Knowing how much potential your money has to grow over the course of your preferred timeline—and what will happen if you end up needing access to your funds sooner rather than later—can help you make the right decision for you and your financial plan.
Best CD rates for other terms
Our methodology
The Fortune RecommendsTM team compared one-year certificates of deposit (CDs) from more than 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located.
We ranked the best one-year CDs on the following categories:
- 1-year term (50%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Minimum deposit requirement (30%): In order to open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
- Compound frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more frequency interest compounds on your CD, the better.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave the phone support the most weight.
The best CDs offer APYs twice the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages instead of banks and can be riskier because of this.
The rates, fees, and minimum deposit requirements for CDs are available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank and credit unions on this list are insured by the FDIC and NCUA respectively. Should you choose to terminate your CD before it matures, you may likely be subject to a penalty, which varies by bank.
| Find the best banking products available to you | |
| If you… | We recommend… |
| Want to earn the best APY you can on your money | High-yield savings accounts |
| Don't mind locking away your money for a set period to earn better interest | Certificates of deposit |
| Want to save money and earn interest but want easy access to it | Money market accounts |
| Are interested in a new checking account but don't want to pay fees | Free checking accounts |
| Need help choosing an online bank or credit union | Online banks and credit unions |
| Own your own business and need an account to manage your income and expenses | Business checking accounts |
| Are looking for a bank that offers a nice cash bonus with a new account | Checking account bonuses |
EDITORIAL DISCLOSURE: The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.