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Matthew Goldberg
Written by
Brian Beers
Edited by
Greg McBride, CFA
Reviewed by
Best available rates across different account types for Friday, June 28, 2024
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What To Know First
A one-year certificate of deposit (CD) could pay more than a high-yield savings account in today’s rate environment. But when selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
Best 1-year CD rates for June 2024
- CIBC Bank USA — 5.36% APY, $1,000 minimum deposit
- Bask Bank — 5.30% APY, $1,000 minimum deposit
- Popular Direct — 5.30% APY, $10,000 minimum deposit
- First Internet Bank of Indiana — 5.26% APY, $1,000 minimum deposit
- Limelight Bank — 5.25% APY, $1,000 minimum deposit
- Forbright Bank — 5.25% APY, $1,000 minimum deposit
- Marcus by Goldman Sachs — 5.15% APY, $500 minimum deposit
- America First Credit Union — 5.15% APY, $500 minimum deposit
- Alliant Credit Union — 5.15% APY, $1,000 minimum deposit
- TAB Bank — 5.15% APY, $1,000 minimum deposit
Note: Annual percentage yields (APYs) shown were updated between June 21, 2024 and June 27, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
On This Page
- Top banks offering 1-year CD rates
- What is a 1-year CD?
- Pros and cons of 1-year CDs
- 1-year CD alternatives
- 1-year CD FAQs
- Research methodology
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Current 1 year CD trends
Bankrate Partner average
4.82% APY
National average
1.81% APY
The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 6/28/2024. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.
On This Page
On This Page
- Top banks offering 1-year CDs
- What is a 1-year CD?
- How to find the best 1-year CD for you
- Pros and cons of 1-year CDs
- Alternatives to 1-year CDs
- 1-year CD FAQs
- Research methodology
Top banks offering 1-year CD rates for June 2024
Note: Annual percentage yields (APYs) shown were updated between June 21, 2024 and June 27, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
CIBC Bank USA
Rating: 4.5 stars out of 5
4.5
Overview
CIBC Bank USA, formerly The PrivateBank and Trust Co., was founded in 1991 and is based in Chicago. It was renamed CIBC Bank USA.
CIBC Bank USA offers its CDs online along with a high-yield savings account that pays a competitive yield.
Read Bankrate's Expert CIBC Bank USA Review
5.36% APY
$1,000 minimum deposit
Bask Bank
Rating: 4.4 stars out of 5
4.4
Overview
Bask Bank began offering CDs in 2022, and its four CD terms range from six months to two years. The bank also offers a savings account with a competitive APY and another savings account that earns American Airlines miles.
Bask Bank has been around since 2020 and is a division of Texas Capital Bank.
Read Bankrate's Expert Bask Bank Review
5.30% APY
$1,000 minimum deposit
Popular Direct
Rating: 4 stars out of 5
4.0
Overview
Popular Direct offers competitive yields but is known for its high minimum balance requirements. The bank offers eight terms of CDs and a savings account. Popular Direct CDs have a $10,000 minimum deposit requirement, and the Ultimate Savings account requires a $5,000 minimum deposit. All Popular Direct deposit accounts are opened through Popular Bank.
Read Bankrate's Expert Popular Direct Review
5.30% APY
$10,000 minimum deposit
First Internet Bank of Indiana
Rating: 4.6 stars out of 5
4.6
Overview
First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. It launched in 1999 and its products are available in all 50 states. First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account with a yield higher than the national average and two checking accounts.
Read Bankrate's Expert First Internet Bank of Indiana Review
5.26% APY
$1,000 minimum deposit
Limelight Bank
Rating: 3.9 stars out of 5
3.9
Overview
Limelight Bank is an online-only bank that’s a division of Capital Community Bank. It’s known for supporting eco-friendly causes such as solar initiatives.
The bank offers four CD terms ranging from six months to three years. A minimum deposit of $1,000 is required. Limelight doesn’t offer any types of bank accounts other than CDs.
Read Bankrate's Expert Limelight Bank Review
5.25% APY
$1,000 minimum deposit
Forbright Bank
Rating: 4.3 stars out of 5
4.3
Overview
Forbright Bank offers five terms of CDs that range from nine months to five years. The one-year option earns an APY that’s tough to beat. The two-year, three-year and five-year terms earn rates that are well above average, but you can find higher yields at other banks. A minimum deposit of $1,000 is required to open a CD.
5.25% APY
$1,000 minimum deposit
Marcus by Goldman Sachs
Rating: 4.9 stars out of 5
4.9
Overview
Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. The online bank has a variety of CDs. This includes nine standard CDs in terms ranging from six months to six years, three no-penalty CDs and a Rate Bump CD.
Marcus offers competitive yields on its CDs and high-yield savings account.
Read Bankrate's Expert Marcus by Goldman Sachs Review
5.15% APY
$500 minimum deposit
America First Credit Union
Rating: 5 stars out of 5
5.0
Overview
America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500.
It also offers a variety of checking and savings accounts.
Read Bankrate's Expert America First Credit Union Review
5.15% APY
$500 minimum deposit
Alliant Credit Union
Rating: 4.7 stars out of 5
4.7
Overview
Alliant Credit Union was founded in 1935 as the United Airlines Employees’ Credit Union. It is one of the largest credit unions in Illinois and has 600,000 members nationwide.
Alliant offers six terms of CDs with competitive APYs and a reasonable minimum deposit requirement. It also offers IRA CDs, a high-yield savings account and a high-yield checking account.
Read Bankrate's Expert Alliant Credit Union Review
5.15% APY
$1,000 minimum deposit
TAB Bank
Rating: 4.5 stars out of 5
4.5
Overview
TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB (Transportation Alliance Bank) serves businesses and individual customers.
It offers several checking accounts, a couple of savings account options, a money market account and CDs in eight terms, from six months to five years.
Read Bankrate's Expert TAB Bank Review
5.15% APY
$1,000 minimum deposit
In the news
The Federal Reserve didn’t raise rates for the third time in a row at its latest meeting on December 13. It’s unclear when the Fed will decide to start cutting rates in 2024.After 11 rate increases, a long-term CD might be worth consideringin this current rate environment. That can help you build a CD ladder for the long term.
But in the short term, a one-year CD can earn more than a top-yielding savings account. A one-year CD is among the highest yielding CD terms offered.
Whatis a 1-year CD?
Having a one-year CD means that your savings will be tied up for 12 months. Generally, you won’t be able to access your funds during that period of time without incurring an early withdrawal penalty. In exchange, you’ll earn a higher yield than you would from a standard savings account or money market account.
How do 12-month CD rates work?
At competitive online banks, CD rates will generally follow changes in Treasury yields. They might also follow other factors such as the rates set by competitors and the bank’s need for deposits.
In the current rate environment, 12-month CDs are one of the most competitive terms for high yields at competitive FDIC-insured banks.
Some banks have a 10-day best-rate guarantee, meaning you could end up with a better rate if the bank raises theirs within days of your decision to open and fund your account. But generally, once you open and fund a fixed-rate CD, you’re stuck with that APY until your term ends. Over time, the bank may raise or lower the advertised rate for new account holders, but your rate will remain the same.
You’ll find that some institutions offer bump-up or step-up CDs that allow rates to change either upon request or at certain intervals during the term. Rates for these CDs, however, tend to be lower than those tied to fixed-rate CDs.
When reviewing CD rates, pay close attention to the annual percentage yield (APY). The APY includes the effects of compounding. Compound interest is the interest you earn on interest.
Learn more:Calculate your CD earnings
How to find the best 1-year CD for you
Decide the purpose of the money and when you’ll need it when considering a one-year CD.
A one-year CD could be a good option if you have money that you can sock away for at least a year but that you can’t afford to lose. Make sure this CD is at an FDIC-insured bank and within the FDIC’s guidelines and following the FDIC’s deposit insurance rules.
As of Jun. 28, 2024, the national average APY for one-year CDs is 1.81 percent, which is a lot lower than the top yields. That’s why you want to shop around to find the right CD for you, instead of just going to the bank down the street.
Here are things to compare when looking for a one-year CD:
- APY
- Minimum deposit requirements
- Early withdrawal penalties
When should you get a 1-year CD?
You should get a one-year CD if you have money that you’re not going to spend in a year. A one-year CD is also a great place for funds that need to be kept safe – provided it’s an FDIC-insured CD and has a fixed, guaranteed APY.
Money that you can risk losing, might be better off in another type of investment. You might be able to earn a higher return in an investment. But you could also lose all of your money.
Today’s top one-year CD APYs earn more than top high-yield savings accounts.
Pros and cons of 1-year CDs
Pros
Your money is protected with FDIC insurance, as long as you’re within FDIC limits and guidelines.
You know exactly how much interest you’ll earn since generally CDs have fixed APYs — as long as you don’t withdraw funds from the CD before its term ends.
Knowing that there’s an early withdrawal penalty can prevent you from withdrawing this money if you don’t need to.
Cons
You can probably earn more through other investments. But you might also lose money from those investments since they probably don’t have a guaranteed, fixed yield.
CDs have early withdrawal penalties. So if you unexpectedly need this money, you could lose interest — and even potentially some principal.
Alternatives to 1-year CDs
1-year CDs vs. other CD terms
A one-year CD is a great place to keep your money if you won’t need it during the year. Consider other CD lengths for longer-term money.
While a five-year CD might have a higher APY, a shorter-term CD can be a better option. CD rates could change significantly in a year, and you might miss out on a good deal by locking up your money for longer. Of course, rates could also decrease significantly — like when the pandemic first hit.
1-year CDs vs. savings accounts
CDs with terms lasting for one year often pay more interest than traditional savings accounts. Here’s why: you’re rewarded with a higher yield in exchange for agreeing to leave your money tied up for a set period of time.
That’s not the case with all CD terms in this current rate environment. Generally, one-year CDs and high-yield savings accounts have a higher APY than a top five-year CD.
What’s more, if you keep money locked up in a CD, it’s harder to access those savings. With a liquid savings account, there is usually no consequence for withdrawing funds (unless you make more than six withdrawals or transfers per statement cycle). Since your CD may have an early withdrawal penalty, you’ll probably think twice about raiding your savings.
Another benefit one-year CDs have over savings accounts is the guaranteed rate that applies for the full term. Savings account rates can change at any time as a result of changes in an interest rate environment or a bank’s priorities. That means over time, your rate of return could decline.
There are downsides to choosing a one-year CD over a savings account. Because CDs traditionally are not liquid accounts, it’s best to keep your emergency fund in a savings account. That way, you can easily access the funds you need to cover an unexpected expense without paying a penalty. Additionally, just as savings account interest rates can go down, they can also go up. By locking your money up in a CD, you could miss out on an opportunity to earn more interest.
1-year CDs vs. money market accounts
Another more liquid option than a CD is parking your cash in a money market account. At some banks, the money market account requires a higher minimum deposit. A money market account may also pay more interest than the institution’s savings account.
With a money market account, you can easily withdraw your savings at any time without penalty, and at some banks, you’ll have access to a debit card. Keep in mind that like savings accounts, money market accounts may be limited to a maximum of six transfers or withdrawals per month or per statement cycle.
Even though in April 2020, there was an interim final rule to amend Regulation D and delete the limit on certain withdrawals, most savings and money market accounts still have these limits. You might be charged a fee for exceeding these limits at some banks.
1-year CD FAQs
Research methodology
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. (FDIC).
