Best 1-Year CD Rates (2026)

Compare the highest 12-month CD rates from FDIC-insured banks and credit unions. Lock in a guaranteed return on money you will not need for a year.

Last updated: March 6, 2026

Current Top 1-Year CD Rate

4.25% APY

Premier Credit Union — $2 minimum

View all 1-year CD rates →

Top 1-Year CD Rates

Rank	Bank	APY	Min. Deposit
1	BestPremier Credit Union	4.25%	$2	Visit →
2	GECU	4.23%	$50	Visit →
3	E*TRADE from Morgan Stanley	4.10%	$0	Visit →
4	Southeast Financial Credit Union	4.10%	$500	Visit →
5	Affinity Credit Union	4.06%	$0	Visit →
6	Popular Direct	4.05%	$10	Visit →
7	United Fidelity Bank, fsb	4.05%	$1	Visit →
8	USALLIANCE Financial	4.05%	$500	Visit →
9	AmeriCU	4.00%	$500	Visit →
10	Summit Credit Union (WI)	4.00%	$0	Visit →

Showing top 10 of 18 1-year CDs. View all 18 rates

How Much Will You Earn With a 1-Year CD?

The table below shows estimated earnings at the current top rate of 4.25% APY over 12 months with monthly compounding. Your actual earnings will depend on your bank's compounding frequency.

Deposit Amount	APY	Interest Earned	Balance at Maturity
$5,000	4.25%	$217	$5,217
$10,000	4.25%	$433	$10,433
$25,000	4.25%	$1,083	$26,083
$50,000	4.25%	$2,167	$52,167
$100,000	4.25%	$4,334	$104,334

Interest calculations assume monthly compounding and no withdrawals during the term. Use our compound interest calculator for custom scenarios.

What Is a 1-Year CD?

A 1-year certificate of deposit (CD) is a savings product where you deposit money with a bank or credit union for a fixed 12-month term. In exchange for locking up your funds, you earn a guaranteed, fixed interest rate that will not change regardless of what happens to market rates during that year.

When the CD matures after 12 months, you receive your original deposit plus all accrued interest. If you need the money before maturity, you can withdraw it but will pay an early withdrawal penalty — typically 3 to 6 months of interest for a 1-year CD.

The 12-month term is one of the most popular CD durations because it balances a competitive rate with a relatively short lock-up period. You are not committing money for 3 or 5 years, but you typically earn more than you would with a 3-month or 6-month CD.

All CDs from FDIC-insured banks are federally protected up to $250,000 per depositor, per bank — the same coverage as any checking or savings account. Learn more about FDIC insurance.

1-Year CD vs Other CD Terms

How does a 12-month CD compare to other popular terms? Here are today's best rates by term length:

Term	Best APY	Bank	Best For
6-Month	4.30%	Newtek Bank	Short-term savings, testing the waters
12-Month	4.25%	Premier Credit Union	Balanced rate and flexibility
2-Year	4.20%	Mountain America Credit Union	Medium-term, rate-lock protection
5-Year	4.32%	State Savings Bank	Maximum rate lock, long-term savings

In general, longer terms offer higher rates because you are committing your money for a longer period. However, the difference between a 1-year and 5-year CD is often small — sometimes less than 0.25% — which makes the 12-month term attractive for the added flexibility.

1-Year CD vs High-Yield Savings Account

Both 1-year CDs and HYSAs are safe, FDIC-insured savings options. The key difference is the trade-off between a fixed rate with a lock-up period (CD) versus a variable rate with full liquidity (HYSA).

Feature	1-Year CD	HYSA
Best Rate	4.25%	4.40%
Rate Type	Fixed (locked in)	Variable (can change anytime)
Liquidity	Locked for 12 months	Withdraw anytime
Early Withdrawal	Penalty (3-6 months interest)	No penalty
FDIC Insured	Yes, up to $250,000	Yes, up to $250,000
Best When Rates Are	Falling (locks high rate)	Rising (captures increases)

Bottom line: Choose a 1-year CD if you want a guaranteed rate and will not need the money for a year. Choose a HYSA if you want flexibility or think rates might rise. Many savers use both — a HYSA for their emergency fund and accessible cash, and CDs for money earmarked for future goals. Read our full HYSA vs CD comparison.

When Does a 1-Year CD Make Sense?

A 12-month CD is a strong choice in several common scenarios:

•You expect interest rates to fall — When the Fed signals rate cuts, locking in a 1-year CD preserves your return while HYSA rates drop. This is the single biggest advantage of CDs over variable-rate accounts.
•You have a known expense in ~12 months — Saving for a wedding, vacation, insurance premium, or property tax payment that is roughly a year away? A 1-year CD guarantees your return on that specific pile of cash.
•You want to build a CD ladder — A 1-year CD is the most common starting rung in a CD ladder strategy. As longer rungs mature, you reinvest them into 1-year CDs to keep the ladder rolling.
•You want discipline for your savings — If you are tempted to dip into savings, the early withdrawal penalty on a CD acts as a psychological barrier. It is not a hard lock — you can still access the money if you truly need it — but the penalty discourages casual withdrawals.
•You have excess cash beyond your emergency fund — Once your emergency fund is fully stocked in a HYSA, a 1-year CD can put additional savings to work at a potentially higher or more predictable rate.

How to Choose the Best 1-Year CD

1. Compare APY — Not Just the Bank Name

The APY is the single most important factor. A difference of 0.25% on a $25,000 deposit is about $63 over 12 months. That may not sound like much, but it adds up across larger deposits and multiple years of rolling renewals. Online banks and credit unions consistently offer higher rates than big national banks.

2. Check the Minimum Deposit

Some CDs require $500, $1,000, or even $10,000 to open. Others have no minimum at all. If you are starting with a smaller amount, filter for CDs with low or no minimums. Do not stretch your budget just to meet a minimum — the rate difference is rarely worth it.

3. Understand the Early Withdrawal Penalty

Every standard CD has an early withdrawal penalty (EWP). For 1-year CDs, this is typically 3 to 6 months of interest. A lower penalty gives you more flexibility if you need the money unexpectedly. If you think there is any chance you will need early access, look at no-penalty CD options or keep that money in a high-yield savings account instead.

4. Verify FDIC or NCUA Insurance

This is non-negotiable. Only deposit money at FDIC-insured banks or NCUA-insured credit unions. You can verify any institution at fdic.gov/BankFind. All institutions listed on SafetyYield are federally insured. Learn more about FDIC insurance.

5. Consider the Auto-Renewal Policy

Most banks automatically renew your CD into a new 12-month term at maturity — at whatever rate they are offering at that time, which may be lower than your original rate. Set a calendar reminder 7 to 10 days before maturity so you can compare rates and decide whether to renew, withdraw, or move the money to a better-paying institution.

Maximize Returns With a CD Ladder

Combine 1-year CDs with other terms to create a ladder that gives you regular access to your money while earning higher long-term rates. A 12-month CD is the most common rung in a ladder.

CD Ladder Calculator →CD Ladder Strategy Guide

Tips for Getting the Most From a 1-Year CD

Shop online banks and credit unions first

The best CD rates almost always come from online banks and credit unions, not big national banks like Chase, Bank of America, or Wells Fargo. Those large banks can afford to offer lower rates because customers choose them for convenience, not yield. If you want the highest return, look beyond your primary bank.

Do not chase small rate differences between CDs

A 0.05% difference on $10,000 is about $5 over a year. If two CDs are within a few basis points of each other, pick the one from the bank you trust more, with the lower minimum, or with the more favorable early withdrawal terms. The difference in dollars is negligible.

Set maturity reminders

Banks typically give you a short grace period (7 to 14 days) after maturity to decide what to do. Miss it, and your money auto-renews — potentially at a much lower rate. Set a phone reminder a week before maturity to review your options.

Consider the tax impact

CD interest is taxed as ordinary income in the year it is earned or credited. If you have a high-income year, your effective return after taxes will be lower. This does not change whether a CD is a good choice — HYSAs and Treasury bills are taxed too — but factor your tax bracket into return comparisons. Learn more about savings interest taxes.

Keep your emergency fund separate

Never lock your emergency fund in a CD. That money needs to be instantly accessible without penalties. Keep 3 to 6 months of expenses in a high-yield savings account, then use CDs for additional savings beyond your emergency buffer. Emergency fund guide.

Frequently Asked Questions

What is the best 1-year CD rate right now?

The best 1-year CD rate is currently 4.25% APY from Premier Credit Union. Rates change frequently, so check our rate tables for the latest numbers. All listed CDs are from FDIC-insured or NCUA-insured institutions.

Is a 1-year CD worth it?

A 1-year CD is worth it if you have money you will not need for 12 months and want a guaranteed, locked-in return. It is especially valuable when interest rates are expected to decline, because your rate stays fixed even if market rates drop. If you might need access to your money sooner, a high-yield savings account or shorter-term CD may be better.

What happens when my 1-year CD matures?

When your CD matures after 12 months, you can withdraw your principal plus all earned interest penalty-free. Most banks auto-renew into a new 1-year CD at whatever rate is current at that time, so set a calendar reminder a week before maturity to decide whether to renew, withdraw, or move the money elsewhere.

Can I withdraw from a 1-year CD early?

Yes, but you will pay an early withdrawal penalty. For 1-year CDs, this is typically 3 to 6 months of interest. For example, if you earned $400 in interest over 10 months and the penalty is 3 months of interest, you would forfeit roughly $120. If you think you may need the money, consider a no-penalty CD or a high-yield savings account instead.

Are 1-year CDs FDIC insured?

Yes. CDs from FDIC-insured banks are protected up to $250,000 per depositor, per bank. Credit union CDs (called share certificates) carry the equivalent NCUA insurance. All institutions listed on SafetyYield are federally insured.

Should I get a 1-year CD or a high-yield savings account?

It depends on whether you need liquidity and your rate outlook. A 1-year CD locks in a guaranteed rate (currently up to 4.25%), which protects you if rates fall. A HYSA (currently up to 4.40%) gives you full access to your money but the rate can drop at any time. Many people use both: a HYSA for accessible cash and CDs for money they can lock away.

How much interest will I earn on a 1-year CD?

At the current top rate of 4.25%, a $10,000 deposit in a 1-year CD would earn approximately $433 in interest. A $25,000 deposit would earn about $1083, and $50,000 would earn roughly $2167. Interest on CDs compounds, so your actual return may be slightly higher than a simple rate calculation.