Best 1-Year CD Rates of 2024

One-year certificates of deposit (CDs) are good places to stash cash if you pick the right one. The best 1-year CD rates are paying over 5%, far above the national average of 1.85%.

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DepositAccounts strives to produce high-quality content that meets your needs and exceeds your expectations. Content is fact-checked to ensure accuracy and objectivity. DepositAccounts gathers 100 of 1-year CD rates from banks and credit unions across the country to identify the best daily rates.

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Best 1-year CD rates of 2024

Compare top 1-year CD rates nationwide

Search our robust database of banks and credit unions to find your perfect account.

Location
Deposit Amount
Filters
Institution
APY
Early Withdrawal Penalty (Days)
Min. to Earn
Min. Deposit
Farmers Insurance Federal Credit Union
NCUA Insured
12 Month Flex - Term Share Certificate Special - New Money
1.4 (14 Reviews)
5.25%
$1k
View
Farmers Insurance Federal Credit Union
12 Month Flex - Term Share Certificate Special - New Money
View
1.4 (14 Reviews) NCUA Insured
APY 5.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Home Federal Credit Union (WV)
NCUA Insured
12 Month Share Certificate Special
0.0 (0 Reviews)
5.25%
$1k
View
Home Federal Credit Union (WV)
12 Month Share Certificate Special
View
0.0 (0 Reviews) NCUA Insured
APY 5.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Langley Federal Credit Union
NCUA Insured
10 Month CD Special - New Member
2.0 (33 Reviews)
5.25%
90 Days
$500
$500
View
Langley Federal Credit Union
10 Month CD Special - New Member
View
2.0 (33 Reviews) NCUA Insured
APY 5.25%
Early Withdrawal Penalty (Days) 90 Days
Minimum to Earn $500
Minimum Deposit $500
Meritrust Credit Union
NCUA Insured
1 Year Share Certificate Special
2.0 (19 Reviews)
5.25%
$500
View
Meritrust Credit Union
1 Year Share Certificate Special
View
2.0 (19 Reviews) NCUA Insured
APY 5.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Bank of Vici
Member FDIC
1 Year CD
0.0 (0 Reviews)
5.13%
$1k
View
Bank of Vici
1 Year CD
View
0.0 (0 Reviews) Member FDIC
APY 5.13%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Community Bank & Trust (GA)
Member FDIC
12 Month CD
0.0 (0 Reviews)
5.13%
$500
View
Community Bank & Trust (GA)
12 Month CD
View
0.0 (0 Reviews) Member FDIC
APY 5.13%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Community Bank and Trust
Member FDIC
12 Month CD
0.0 (0 Reviews)
5.13%
$500
View
Community Bank and Trust
12 Month CD
View
0.0 (0 Reviews) Member FDIC
APY 5.13%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Bowater Employees Credit Union
NCUA Insured
12 Month CD
0.0 (0 Reviews)
5.12%
$500
View
Bowater Employees Credit Union
12 Month CD
View
0.0 (0 Reviews) NCUA Insured
APY 5.12%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Complex Community Federal Credit Union
NCUA Insured
12 Month CD
0.0 (0 Reviews)
5.12%
90 Days
$0
View
Complex Community Federal Credit Union
12 Month CD
View
0.0 (0 Reviews) NCUA Insured
APY 5.12%
Early Withdrawal Penalty (Days) 90 Days
Minimum to Earn $0
Minimum Deposit
Everwise Credit Union
NCUA Insured
10 Month CD Special
1.7 (8 Reviews)
5.12%
$500
View
Everwise Credit Union
10 Month CD Special
View
1.7 (8 Reviews) NCUA Insured
APY 5.12%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Power Financial Credit Union
NCUA Insured
11/11-Month CD Special
1.0 (2 Reviews)
5.12%
$2.5k
View
Power Financial Credit Union
11/11-Month CD Special
View
1.0 (2 Reviews) NCUA Insured
APY 5.12%
Early Withdrawal Penalty (Days)
Minimum to Earn $2.5k
Minimum Deposit
Daniels-Sheridan Federal Credit Union
NCUA Insured
1 Year Share Certificate
0.0 (0 Reviews)
5.11%
$500
View
Daniels-Sheridan Federal Credit Union
1 Year Share Certificate
View
0.0 (0 Reviews) NCUA Insured
APY 5.11%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
White Eagle Credit Union
NCUA Insured
1 Year CD
0.0 (0 Reviews)
5.05%
$500
View
White Eagle Credit Union
1 Year CD
View
0.0 (0 Reviews) NCUA Insured
APY 5.05%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
The Peoples Bank (AR)
Member FDIC
10 Month Special CD
2.2 (2 Reviews)
5.01%
$1k
View
The Peoples Bank (AR)
10 Month Special CD
View
2.2 (2 Reviews) Member FDIC
APY 5.01%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Casey State Bank
Member FDIC
10 Month CD Special
0.0 (0 Reviews)
5.00%
$1k
View
Casey State Bank
10 Month CD Special
View
0.0 (0 Reviews) Member FDIC
APY 5.00%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Next
On This Page

What is a 1-year CD, and how does it work?

A CD is a deposit account in which you agree to leave your funds for a set period of time, called the “CD term.” In exchange, the bank pays a fixed interest rate, called the “annual percentage yield” (APY).

This rate is often higher than what you can get from traditional savings accounts. But if you withdraw money from a CD before its maturity date, you could lose some of the interest earned as an early withdrawal penalty.

Some banks automatically renew your CD when it matures, rolling the money into a new CD. In that case, there may be a 7- or 10-day grace period during which you can withdraw your funds without penalty before they are locked in the new CD.

How are CD rates trending?

One-year CD rates climbed steadily over the past year and have now leveled off. This could mean that now is a good time to lock in these high yields, especially with the Federal Reserve expected to drive interest rates lower across the market through 2026. On the other hand, if you think inflation will remain elevated, you could wait to see if rates move higher in the near future.

1-Year CD Rate History – Average APY (%) Rate Trend Over Time

Where to find the best 1-year CDs

You can find 1-year CDs at banks and credit unions. Brokerage firms also sell CDs, called brokered CDs. While online banks and credit unions tend to offer higher rates, you might be able to negotiate a better deal with a broker, so it's worth considering both types.

If you're buying a brokered CD, make sure it's federally insured — by the Federal Deposit Insurance Corp. (FDIC) if purchased through a bank or by the National Credit Union Association (NCUA) if bought through a credit union.

You'll also want to look out for fees, such as account maintenance fees, in addition to early withdrawal penalties. Review your bank's or credit union's fee schedule so you know what to expect.

What to know when comparing CDs

Comparison shopping is key to getting the best 1-year CD. Consider the following points:

When is a 1-year CD a good idea?

A 1-year CD often provides higher interest rate yields than savings accounts but with less risk than stock market investments, which could lead to higher returns.

Also, one-year CDs usually pay better than shorter-term CDs, such as those with 3- or 6-month terms. In fact, 1-year CDs currently have the highest national average APY of any CD, even compared to 24- or 60-month CDs.

However, this might not always be the case. Rates can change daily, so if you like the current selection, invest now to lock in these rates in case they decline.

Of course, rates may rise in the future, so do some research and invest based on where you think the financial markets are headed.

Pros and cons of 1-year CDs

PROS

  • Higher interest rates than savings accounts
  • Fixed returns that are virtually guaranteed
  • Usually federally insured up to $250,000

CONS

  • Must lock up cash for one year to avoid penalties
  • Rates may rise before your CD matures
  • Could earn higher rates with other securities, like stocks

1-year CD alternatives

CDs can be great places to put your cash to work, but they aren't the only savings vehicles available. It's important to consider all your options before deciding on a CD.

High-yield savings account

High-yield savings accounts are another type of deposit account offered by banks and credit unions. They generally offer much higher rates than traditional savings accounts with APYs that can be similar to those on CDs — but you don't have to lock up your cash for a set period of time. Still, banks and credit unions may limit how many transactions you can make each month.

Money market account

Money market accounts, also offered by banks and credit unions, operate like checking accounts with ATM cards and check-writing capabilities, but they pay rates close to those of high-yield savings accounts. They can be a great solution if you need access to your money but still want to earn solid interest rates.

I bond

I bonds are savings bonds issued by the U.S. Treasury. Like CDs, I bonds pay regular interest, except that the interest rate can rise or fall with inflation. When consumer prices rise, your CD yield will likely rise, and when prices fall, the yield will too.

The current interest rate on I bonds is 4.28% compared to over 5% for the best 1-year CD rates. Also, you need to hold onto an I bond for 12 months to receive your full interest earned.

Frequently asked questions

How do I invest in CDs?

You can invest in CDs through a bank, credit union or brokerage firm. First, decide which CD term works best for you. Then, find the financial institution with the best rate and lowest fees. Finally, open a CD account and buy your CD.

How many CDs can you have at one bank?

You can have as many CDs at one bank as you'd like. However, FDIC and NCUA insurance only covers up to $250,000 for each type of account at a given institution. So, if you have $300,000 worth of CDs at one bank, you're only insured for $250,000. However, you can be fully covered if you have $250,000 at one bank and $50,000 at another institution.

Are CDs insured?

CDs are federally insured if they're issued by FDIC- or NCUA-covered institutions. The FDIC insures deposits at banks, while the NCUA insures deposits at credit unions. These corporations cover up to $250,000 per person, per account type at each institution.