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Best 1-Year CD Rates for March 2024

You can earn up to 5.35% APY with a one-year CD. But these rates won’t last forever.

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A certificate of deposit lets you earn interest on a sum of money with a fixed annual percentage yield, or APY, over a fixed period of time, or term. CDs are a good savings option to park money for a few months or years with minimal risk of losing your earnings.

If you need to access the money before it fully matures, you’ll often pay an early withdrawal penalty that can reduce your interest earnings. Most CD options require a single deposit and don’t allow additional deposits, so you’ll need to gather your funds before opening an account. When you’re ready to open a CD, compare the best terms and rates among local credit unions and banks to find the right fit for your savings.

Best 1-Year CD Rates
  • CFG Bank 5.25% APY, $1,000 Min. deposit to open, 1-year Term
  • BMO Alto 5.30% APY, $0 Min. deposit to open, 1-year Term
  • Forbright Bank 5.10% APY, $1,500 Min. deposit to open, 1-year Term
  • CommunityWide Federal Credit Union 5.25% APY, $1,000 Min. deposit to open, 1-year Term
  • Bread Savings 5.35% APY, $1,500 Min. deposit to open, 1-year Term
  • LendingClub 5.00% APY, $2,500 Min. deposit to open, 1-year Term
  • MYSB Direct 5.30% APY, $500 Min. deposit to open, 1-year Term
Helpful Definitions
Certificate of deposit (CD)

A type of savings account in which a lump-sum deposit accrues interest at a fixed rate for a fixed term, usually with an early withdrawal penalty.

Annual percentage yield (APY)

A CD’s interest rate that represents the return from the compounded interest you’ll earn in 12 months on your deposit. The higher the APY, the faster your money grows.

CD term

The fixed period in which your deposit earns interest. The maturity date is the end of the term, which can range from one month to 10 years or more.

Early withdrawal penalty

The fee for withdrawing your CD funds before maturity, often equalling a period's worth of interest, which varies by institution and length of CD term.

Share certificate

Similar to a CD, but issued by a credit union, in which a credit union member deposits a lump sum that accrues interest for a fixed term.

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CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.


The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guarantee the accuracy or availability of any rates shown. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own website where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

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Terms explained

Certificate of Deposit (CD)

A type of savings account in which a lump-sum deposit accrues interest at a fixed rate for a fixed term, usually with an early withdrawal penalty.

Checking

The core bank account used for financial transactions. Account holders use it to deposit money and withdraw funds as needed.

Savings

A deposit account issued by banks and credit unions used to deposit money and earn a small amount of interest. Typically insured for up to $250,000 per account owner.

Money Market Account (MMA)

Similar to a savings account but with the added feature of checking-writing privileges and debit card to access cash, with some limitations.

Annual Percentage Yield (APY)

A CD’s interest rate that represents the return from the compounded interest you’ll earn in 12 months on your deposit. The higher the APY, the faster your money grows.

Estimated earnings

An estimated calculation usually associated with determining how much you’ll receive from an interest-bearing account.

The best one-year certificates of deposit, or CDs, pay more than most high-yield savings accounts and money market accounts in today’s rate environment. But you need to be prepared to lock away your funds for a year. 

A one-year CD is a low-risk way to earn interest on money you don’t need to touch until next year. Some online-only banks and credit unions offer one-year CD rates with annual percentage yields, or APYs, over 5%. With inflation on its way down and the Federal Reserve expected to lower rates this year, banks have slowly started to drop savings APYs. In the last few weeks, the average APY for a one-year CD dropped from 5.24% to 5.07%, based on the banks we track at CNET. So, while APYs remain elevated, now’s the time to lock in a competitive rate.

CNET’s picks for the best 1-year CD rates

Bank APY Min. deposit to open Term
CFG Bank 5.25% $1,000 1-year
BMO Alto 5.30% $0 1-year
Forbright Bank 5.10% $1,500 1-year
CommunityWide Federal Credit Union 5.25% $1,000 1-year
Bread Savings 5.35% $1,500 1-year
LendingClub 5.00% $2,500 1-year
MYSB Direct 5.30% $500 1-year
More details on the best 1-year CD rates
3.9/5
How we score CDs We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.
APY
3.8/5
Minimum deposit and fees
5.0/5
Customer service
3.0/5
APY APY = Annual Percentage Yield.
5.25%
Min. deposit to open
$1,000
Term
1-year

CFG Bank has CD terms ranging from six months to three years. There’s a minimum $1,000 deposit. It’s an online-only bank but has several customer service options for assistance, including phone, email and a contact form. You can only deposit funds via wire transfer, electronic transfer or check. Cash deposits are not available.

About the bank

CFG Bank has CD terms ranging from six months to three years. There’s a minimum $1,000 deposit. It’s an online-only bank but has several customer service options for assistance, including phone, email and a contact form. You can only deposit funds via wire transfer, electronic transfer or check. Cash deposits are not available.

BMO Alto

4.4/5
How we score CDs We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.
APY
4.5/5
Minimum deposit and fees
5.0/5
Customer service
4.5/5
APY APY = Annual Percentage Yield.
5.30%
Min. deposit to open
$0
Term
1-year

BMO Alto is the online arm of BMO It offers competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.

However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use its website. Since BMO Alto is separate from BMO bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for assistance.

About the bank

BMO Alto is the online arm of BMO It offers competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.

However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use its website. Since BMO Alto is separate from BMO bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for assistance.

Forbright Bank

3.5/5
How we score CDs We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.
APY
3.0/5
Minimum deposit and fees
5.0/5
Customer service
3.0/5
APY APY = Annual Percentage Yield.
5.10%
Min. deposit to open
$1,500
Term
1-year

Forbright only offers high-yield CDs with limited terms ranging from nine months to five years. 

A minimum $1,000 deposit is required to open a CD account, and you can only fund your account through electronic transfer. If you withdraw funds from your CD before the term ends, you’ll pay three months of interest for a one-year term. 

Forbright has several branches in Maryland and Virginia but also operates online. Customer service is available by phone and email.

About the bank

Forbright only offers high-yield CDs with limited terms ranging from nine months to five years. 

A minimum $1,000 deposit is required to open a CD account, and you can only fund your account through electronic transfer. If you withdraw funds from your CD before the term ends, you’ll pay three months of interest for a one-year term. 

Forbright has several branches in Maryland and Virginia but also operates online. Customer service is available by phone and email.

CommunityWide Federal Credit Union

APY APY = Annual Percentage Yield.
5.25%
Min. deposit to open
$1,000
Term
1-year

Vio Bank is the online division of MidFirst bank that offers competitive rates on savings products. Peer-to-peer transaction tools such as Zelle aren’t compatible with this bank. Access to savings accounts is provided via online and mobile banking services.

 

Early withdrawal penalty: 1% of the amount withdrawn, plus a $25 fee.

About the bank

Vio Bank is the online division of MidFirst bank that offers competitive rates on savings products. Peer-to-peer transaction tools such as Zelle aren’t compatible with this bank. Access to savings accounts is provided via online and mobile banking services.

 

Early withdrawal penalty: 1% of the amount withdrawn, plus a $25 fee.

Bread Savings

3.8/5
How we score CDs We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.
APY
3.8/5
Minimum deposit and fees
4.8/5
Customer service
3.0/5
APY APY = Annual Percentage Yield.
5.35%
Min. deposit to open
$1,500
Term
1-year

Bread Savings offers CDs and high-yield savings accounts, which require a minimum deposit of $1,500 and $100, respectively. CDs come with a few free services common amongst banks but worth noting -- including incoming wire transfers, monthly maintenance and ACH transfers. However, there are a limited number of terms available, only ranging from one to five years. Bread Savings is an online bank but can be reached at 833-755-4354.

About the bank

Bread Savings offers CDs and high-yield savings accounts, which require a minimum deposit of $1,500 and $100, respectively. CDs come with a few free services common amongst banks but worth noting -- including incoming wire transfers, monthly maintenance and ACH transfers. However, there are a limited number of terms available, only ranging from one to five years. Bread Savings is an online bank but can be reached at 833-755-4354.

4.9/5
How we score CDs We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.
APY
5.0/5
Minimum Deposit and Fees
4.8/5
Customer Experience
5.0/5
APY APY = Annual Percentage Yield.
5.00%
Min. deposit to open
$2,500
Term
1-year

LendingClub offers a traditional certificate of deposit account with five different terms ranging from six months to five years. APYs on CDs are competitively priced. There’s a minimum $2,500 deposit required to open a CD, and it automatically renews with a 30-day grace period.

Keep in mind that LendingClub is an online-only bank, so you’ll need to be comfortable managing your account online.

About the bank

LendingClub offers a traditional certificate of deposit account with five different terms ranging from six months to five years. APYs on CDs are competitively priced. There’s a minimum $2,500 deposit required to open a CD, and it automatically renews with a 30-day grace period.

Keep in mind that LendingClub is an online-only bank, so you’ll need to be comfortable managing your account online.

MYSB Direct

4.1/5
How we score CDs We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.
APY
5.0/5
Minimum deposit and fees
1.8/5
Customer service
4.0/5
APY APY = Annual Percentage Yield.
5.30%
Min. deposit to open
$500
Term
1-year

 

M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts. When it comes to CDs, MYSB Direct is a solid option since you’ll earn a competitive rate and there’s a wide range of terms to choose from, including no-penalty CDs. And you can use the bank’s online CD calculator to help estimate your return before opening an account.

However, the CDs require a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts. You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. You can also manage your account online.

 

About the bank

 

M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts. When it comes to CDs, MYSB Direct is a solid option since you’ll earn a competitive rate and there’s a wide range of terms to choose from, including no-penalty CDs. And you can use the bank’s online CD calculator to help estimate your return before opening an account.

However, the CDs require a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts. You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. You can also manage your account online.

 

What is a 1-year CD?

A one-year CD is a timed deposit account that earns interest over one year. For example, if you open a one-year CD today, you’ll have access to the funds, penalty-free, in February 2025. Over the course of the year, you’ll earn a fixed rate of interest on your deposit.

Like most CDs, it’s a low-risk way to earn a return, since your account is protected by either the National Credit Union Association or the Federal Deposit Insurance Corporation for up to $250,000 per person, per account. 

But CDs differ from savings accounts because you can’t withdraw your money during the CD’s term. If you do, you’ll be penalized with a fee, or you may forfeit accrued interest. 

Based on CNET’s daily tracking, you can find one-year CD rates of over 5% at most online-only banks and credit unions. But if you shop around, you may find higher rates and banking features that align with your financial goals. 

When the year term ends, you can access your savings, plus interest, without penalty. After maturity, CDs typically have a grace period of seven to 10 days that gives you time to decide whether you want to withdraw the funds, put them in another type of CD or let the CD automatically renew at the current APY. 

Factors to consider before opening a one-year CD

Most banks and credit unions offer one-year CDs, but not all of them have the best rates. And many financial institutions have different requirements, such as steep minimum deposits or membership eligibility requirements for local credit unions. Since there are plenty of banking options for this term, you’ll need to narrow down your choices based on your own goals.

Here’s what you should consider: 

  • CD type: There are several types of CDs to choose from. While most high-yield CDs let you earn interest, other CDs offer more flexible features, such as the ability to earn more interest or withdraw from the CD early, penalty-free.

  • Compounding schedules: Find out how often interest is added to the principal balance. Interest earned on CDs generally compounds daily or monthly. Interest that compounds daily may yield a slightly higher return.

  • Fees: Choose an account with minimal fees, like monthly maintenance fees, to avoid unnecessary charges.

  • Federal deposit insurance: Choose a bank or credit union that’s FDIC- or NCUA-insured to protect your money up to $250,000 per person, per account.

  • Features: Make sure the bank offers the features you need to manage your money, such as a mobile app, CD calculator or 24/7 customer service.

  • Minimum deposit requirement: The initial deposit required to open the account can vary. Some banks don’t require a minimum deposit, while others require from $500 to $1,500. Look for a comfortable minimum deposit that won’t hamper your other financial goals over the next year.

  • Withdrawal penalties: Look for a CD with a low early withdrawal penalty just in case you need to take out the money before the term ends. Most banks charge three months of interest for withdrawing from your CD before your one-year term ends. If you haven’t earned three months of interest, you may have to cover the fee from your principal balance.

Pros

  • You’ll earn a guaranteed return at a fixed rate.

  • It’s a low-risk investment that’s insured up to $250,000 per person, per account. 

  • Your money is available, penalty-free, in one year. 

  • Most banks offer this popular term. 

Cons

  • You can lose at least three months of interest if you withdraw money from the CD before the term ends.

  • If rates go up, you’ll be locked into the fixed rate until the term ends. 

  • You won’t have access to the money for a year.

Should I choose a 1-year CD right now?

You can earn up to 5.55% APY with a one-year CD, but experts believe CD and savings rates are as good as they’re going to get because the Federal Reserve may be done raising rates. Banks don’t have to move in the same direction as the central bank, but they usually do. So, you may want to lock in a rate soon and start earning interest before rates start dropping. 

Whether you should open a one-year CD also depends on your financial goals. If you’re saving for an emergency fund or need access to the funds on a whim, you may be better off choosing a high-yield savings account. A one-year CD can provide better returns than savings accounts, but you won’t be able to access the money early without paying a penalty. Savings accounts earn less interest, and your funds can lose purchasing power more quickly during times of high inflation, but these accounts offer more liquidity.

How to open a 1-year CD

When you’re ready to open a CD, here’s what you can expect after you’ve chosen your bank.

  • Complete an application. Usually, you’ll be asked to provide personal information, such as your government-issued ID, Social Security number or Individual Taxpayer Identification Number, physical address or other information. 

  • Make your one-time deposit. Once your application is approved, you’ll make a one-time deposit into the CD. Pay attention to the accepted deposit methods. Some banks don’t allow cash or check deposits for CDs. You may be limited to an electronic transfer or direct deposit. 

  • Set up online accounts. Once your account is set up, you can create online or mobile app logins to track your CD and interest earned.

FAQs

If the APY offered on your CD increases after you open it, you won’t benefit from the rate increase. When you open a CD, your rate is fixed for the entire term.

There are, however, types of CDs that are exceptions to this rule. For example, bump-up CDs may allow you to request one rate bump per CD term. You could also choose a no-penalty CD, which allows you to withdraw your deposit at any time without penalty and open a new CD with a higher rate.

Fees vary depending on the institution. Some banks advertise no fees. Others charge a fee if the account is closed before a set timeframe has elapsed. Most CDs charge a penalty for withdrawing money before the maturity date. This penalty is generally based on a percentage of the interest earned.

Unless you’re purchasing a brokered CD offered by a brokerage account, CDs purchased through a bank or credit union insured by the FDIC or NCUA are protected for up to $250,000 per person, per account. Any interest earned on the CD is also covered up to insured limits.

Interest generally compounds either daily or monthly. The more frequent the compounding period, the more interest you’ll earn over the CD’s term. Compound interest is desirable because your money will grow faster. Interest is calculated based on the accumulated interest plus the original principal.

jumbo CD is a CD account that requires a significantly higher initial deposit to open, generally at least $100,000. There are a variety of terms available for jumbo CDs. They earn a fixed-rate APY and the deposit must remain in place for the duration of the term or you’ll be faced with penalties for early withdrawal.

Methodology

CNET reviews high-yield CD accounts based on the latest information posted on bank, credit union and neobank websites. We evaluated APYs, minimum deposits, monthly maintenance fees, minimum balances and other terms and conditions for CD accounts from more than 50 organizations. We selected the CDs with the highest APYs and the best terms for banking consumers.

The banks, credit unions and neobanks we reviewed include: Affirm Savings, Alliant Credit Union, Ally, America First Credit Union, American Express High Yield Savings Account, Axos High Yield Savings, Bank of America Advantage Savings, Bank of the West, Bank5 Connect, Barclays, Bask Bank, Bread Savings, BrioDirect High-Yield Savings, Capital One 360 Checking, Charles Schwab, Chase Premier Savings, Chime, Citibank, Citizens Online Savings Account, Colorado Federal Savings Bank, Consumers Credit Union, Discover, First Internet Bank of Indiana, LendingClub, Live Oak Bank, M&T Bank, Marcus, My Banking Direct, Nationwide My Savings, Navy Federal Credit Union, NBKC, OneUnited Bank, PenFed CU, PNC, Popular Direct Select Savings, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sally Mae Smarty Pig, Santander Bank, Synchrony, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Varo, Vio and Wells Fargo.

This article includes some material that was previously published on NextAdvisor, a CNET Money sister site that was also owned by Red Ventures and which has merged with CNET Money. It has been edited and updated by CNET Money editors.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

Toni Husbands is a staff writer with CNET Money who enjoys exploring topics that promote financial wellness. She began writing about personal finance to document her experience paying off $107,000 of debt, which is detailed in her book, The Great Debt Dump. Previously, she contributed as a freelance writer for websites, including CreditCards.com, Centsai and Wisebread. She was also a regular contributor to Business AM TV, and her work has been featured on Yahoo News. Being a part-time real estate investor and amateur gardener also brings her joy.
Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.
Liliana Hall is a writer for CNET Money covering banking, credit cards and mortgages. Previously, she wrote about personal credit for Bankrate and CreditCards.com. She is passionate about providing accessible content to enhance financial literacy. She graduated from the University of Texas at Austin with a bachelor's degree in journalism, and has worked in the newsrooms of KUT and the Austin Chronicle. When not working, she is probably paddle boarding, hopping on a flight or reading for her book club.
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