Look, if there’s one thing you deserve after the past few years, it’s more for your money. With inflation chipping away at your wallet and paycheck, isn’t it time this economy paid you back?
Well, that time is now. Rates on one-year certificates of deposit (CDs) are sky-high, even with all the talk of potential Fed rate cuts later this year—some offering annual percentage yield (APYs) of over 5%. And while a CD requires you to commit money for one full year or pay a penalty (which no one wants), many have low to no investment minimums. Whatever you’re comfortable committing, you can start earning some of the best CD rates available in years.
The best 1-year CD rates: Our top picks*
| Institution | APY | Minimum deposit | See details |
|---|---|---|---|
| Featured partner Alliant Credit Union | 5.15% | $1,000 | View offer at Alliant |
| Quontic Bank | 4.50% | $500 | View offer at Bankrate |
| First Internet Bank | 5.26% | $1,000 | View offer at Bankrate |
| Prime Alliance Bank | 5.30% | $500 | View offer at Bankrate |
| MYSB Direct | 5.20% | $500 | View offer at Bankrate |
| TAB Bank | 5.27% | $1,000 | View offer at Bankrate |
| Ally Bank | 4.50% | $0 | View offer at Bankrate |
| Capital One 360 | 5.00% | $0 | View offer at Bankrate |
| Newtek Bank | 5.15% | $2,500 | Learn more |
| First National Bank of America | 5.05% | $1,000 | Learn more |
| Best 1-year CDs: Our top picks | |||
|---|---|---|---|
| Featured partner Alliant Credit Union | View offer at Alliant | ||
| APY | 5.15% | ||
| Minimum deposit | $1,000 | ||
| Quontic Bank | View offer at Bankrate | ||
| APY | 4.50% | ||
| Minimum deposit | $500 | ||
| First Internet Bank | View offer at Bankrate | ||
| APY | 5.26% | ||
| Minimum deposit | $1,000 | ||
| Prime Alliance Bank | View offer at Bankrate | ||
| APY | 5.30% | ||
| Minimum deposit | $500 | ||
| MYSB Direct | View offer at Bankrate | ||
| APY | 5.20% | ||
| Minimum deposit | $500 | ||
| TAB Bank | View offer at Bankrate | ||
| APY | 5.27% | ||
| Minimum deposit | $1,000 | ||
| Ally Bank | View offer at Bankrate | ||
| APY | 4.50% | ||
| Minimum deposit | $0 | ||
| Capital One 360 | View offer at Bankrate | ||
| APY | 5.00% | ||
| Minimum deposit | $0 | ||
| Newtek Bank | Learn more | ||
| APY | 5.15% | ||
| Minimum deposit | $2,500 | ||
| First National Bank of America | Learn more | ||
| APY | 5.05% | ||
| Minimum deposit | $1,000 | ||
*Rates accurate as of May 27, 2024, but are subject to change. Explore our ranking methodology here.
The 10 best 1-year CD rates
The following is our list of the best one-year CDs according to Fortune RecommendsTM editors, based on our ranking of several account features.
FEATURED PARTNER
Alliant Credit Union
| 1-year APY | 5.15% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Number of days the certificate is open, up to 90 days’ interest |
Alliant Credit Union is a not-for-profit credit union offering a variety of high-yield accounts, as well as lending products such as auto loans and mortgages. If you don’t qualify to join Alliant under its field of membership, you have the option to become an Alliant Credit Union Foundation digital inclusion advocate, which makes you eligible to join the credit union.
Learn MoreWhy we picked it
Alliant offers one of the highest APYs on our list at5.15%, and dividends compound monthly. As a digital credit union, if you choose Alliant as your financial home, you won’t have access to physical branch locations. You will, however, be able to contact customer service via email, chat, or phone.
Quontic Bank
| 1-year APY | 4.50% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | Equal to the interest for the entire length of the stated term |
Quontic is a digital bank that started as a community bank in New York City in 2009. It’s one of the 3% of banks that are designated a Community Development Financial Institution (CDFI), meaning deposits are used to help make homeownership possible for low-income families, immigrants, people of color, and small business owners. It offers several checking and savings accounts, CDs, and mortgage products. Learn more: Read our Quontic Bank review
View offer at QuonticWhy we picked it
Quontic’s 1-year CD made our list because it had one of the highest APYs of the banks we evaluated. Plus, it has a modest opening deposit requirement and interest that compounds daily.
First Internet Bank
| 1-year APY | 5.26% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 180 days’ interest |
Founded in 1999, First Internet Bank was one of the first financial institutions to operate solely online. It offers a wide range of financial products and services. Learn more: Read our First Internet Bank review
View offer at BankrateWhy we picked it
With a 5.26% APY, First Internet Bank’s 1-year CD offers one of the best rates around. Keep in mind that to open an account, you’ll need at least $1,000, which could be steep for those who don’t have a lot saved.
Prime Alliance Bank
| Key numbers | |
|---|---|
| 1-year APY | 5.30% |
| Minimum opening deposit | $500 |
| Early withdrawal penalty | 30 days’ interest |
Headquartered in Woods Cross, Utah, Prime Alliance Bank offers checking, savings, money market accounts, and more. Learn more: Read our Prime Alliance Bank review
View offer at BankrateWhy we picked it
Whether you want to invest your money for 6 months or 5 years, Prime Alliance has you covered. Currently, you can get a 5.30 % APY on a 12-month CD. That means if you invested just $5,000 in a 12-month CD, you would earn $247.50 in a year.
MYSB Direct
| Minimum Deposit | $500 |
| 1-year APY | 5.20% |
| Early withdrawal penalty | All interest earned |
MYSB Direct is the online-only banking division of New York-based M.Y. Safra Bank.
View offer at BankrateWhy we picked it
MYSB Direct is the online-only banking division of New York-based M.Y. Safra Bank. Its 1-year CD comes with a competitive 5.20% APY and modest opening deposit requirement of $500. However, customers who need to withdraw their funds early could be subject to a hefty early withdrawal penalty of all interest earned.
TAB Bank
| Key numbers | |
|---|---|
| 1-year APY | 5.27% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | 90 days’ interest |
Established in 1998, Transportation Alliance Bank, Inc. (TAB Bank) is a tech-driven online bank that offers products and services designed to serve the needs of the underserved. Today, it provides a wide variety of services to individuals, families, and businesses. Learn more: Read our TAB Bank review
View offer at BankrateWhy we picked it
While you’ll need to have a bit of a nest egg built up to invest in a TAB Bank CD, you can receive a whopping 5.27% APY on a 1-year CD.
For customer service you can reach out via phone call (6 a.m. to 7 p.m. MT Monday through Friday and 9 a.m. to 3 p.m. on Saturday) or a secure form on their site.
Ally Bank
| Key numbers | |
|---|---|
| 1-year APY | 4.50% |
| Minimum opening deposit | $0 |
| Early withdrawal penalty | 150 days’ interest |
Ally Bank is an online-only bank that offers a wide range of products and services like checking and savings accounts, credit cards, personal loans, and robo-advisors. Bonus: Ally Bank offers customers 24/7 phone, chat, and email support. Learn more: Read our Ally Bank review
View offer at BankrateWhy we picked it
Ally’s 1-year CD rate is 4.40%, which is high but still not the best rate on our list. So why is it in our top 10? Well, it has a $0 minimum deposit, which allows new savers to lock in a great rate for the long haul.
Bonus: Ally Bank offers customers 24/7 phone, chat, and email support.
Capital One 360
| 1-year APY | 5.00% |
| Minimum Deposit | $0 |
| Early withdrawal penalty | 3 months of interest |
Capital One is one of the largest banks in the country, headquartered in Virginia with a strong online presence as well as some physical branches across the country. Learn more: Read our Capital One 360 review
Why we picked it
With Capital One 360 CDs, there’s no minimum opening deposit, so you can score a solid APY regardless of how much you have to save. The 1-year CD offers a solid 5.00% APY. Plus, if you choose to tap your money early, you’ll only give up three months of interest, which is a modest penalty compared to some other banks on our list.
Newtek Bank
| 1-year APY | 5.15% |
| Minimum opening deposit | $2,500 |
| Early withdrawal penalty | 180 days’ of interest |
Newtek Bank is a division of the company NewtekOne. It offers various personal and business banking products, such as checking and savings accounts. Learn more: Read our Newtek Bank review
Why we picked it
While Newtek Bank had one of the highest minimum opening deposits, clocking in at $2,500, it may be worth the investment. Their 1-year CD boasts a 5.15% APY. However, if you need your money before the CD matures, you’ll have to give up around six months’ of interest.
First National Bank of America
| 1-year CD APY | 5.05% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 180 days’ interest |
First National Bank of America (FNBA) was founded in 1955 and is headquartered in Michigan. Learn more: Read our FNBA review
Though First National Bank of America’s minimum opening deposit requirement may be steep for some, it provides a generous 5.05% APY.
The early withdrawal penalties on FNBA’s CDs are pretty hefty, though, so if you opt for this CD, make sure you’re comfortable locking up your funds. Customers can opt for a partial withdrawal of their funds—though this could mean incurring an early withdrawal penalty and missing out on some compound interest.
Customer service is available via phone or through their online form.
Insight from Kristy Snyder, Fortune contributor
“I’ve been creating a monthly CD ladder where I open a new 12-month CD every month. Eventually, I’ll have a CD maturing every month, which gives me more access to my cash if I need it.”
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 officially reaches 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 of one year 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.
Best CD rates for other terms
A one-year CD offers a great mix of higher rates with a shorter term. However, you might want to consider other CD term lengths, depending on your savings goals.
More CDs to consider:
Best CD rates for other terms
- Best CD rates overall
- Best 6-month CD rates
- Best 3-year CD rates
- Best 5-year CD rates
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 live.
We ranked the best one-year CDs in the following categories:
- Annual percentage yield (60%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Minimum deposit requirement (30%): To open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
- Customer service (10%): Top picks offer customers three ways to get in contact: chat support, by phone, or email. Among the three options, we gave the phone support the most weight.
The best CDs offer APYs two to three times 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 a limited time, and APYs are subject to fluctuation, which could impact how much interest you earn. All the banks 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 could be subject to a penalty, which varies by bank.
About the author
Cassie Bottorff is the business and banking editor atFortune Recommends, collaborating with teams around the world while living in the beautiful hills of Kentucky. She obtained her degree from Northern Kentucky University and is a certified SCRUM master. Cassie is passionate about finances and economic development, and is the treasurer of a nonprofit organization seeking to revitalize her former railroad town. Prior to joining the team at Fortune Recommends, Cassie was a deputy editor at Forbes Advisor and a Central Operations Project Manager at Fit Small Business.
