If you’re looking for a simple way to grow your savings, 1-year CDs are a great option. In this article, we’ve rounded down some of the best 12-month CD rates. We’ve focused on banks and credit unions that have low minimum deposit requirements, no extra fees, and are available nationwide. We’ve also included CDs with terms of around one year, like 10-month CDs.

Editor’s Pick

Discover® Bank, Member FDIC offers a 12-month CD with a current APY of 4.70%. Discover remains one of the world’s most trusted financial brands and offers every other deposit product you need, including savings, checking, and IRAs. All deposits are FDIC insured up to the $250,000 maximum.

  • Current APY – 4.70%
  • Minimum Deposit Requirement – $2,500
  • Early Withdrawal Penalty – 6 months of simple interest

The Rest of the Best 12-Month CD Rates

1. GreenState Credit Union via Raisin

Certificate of Deposit

Member NCUA

APY

4.70%

Term

10 Months

Min. Deposit

$1

Our Rating: 4.7

★★★★

Pros


  • No fees
  • Excellent rate
  • $1 minimum deposit

Cons


  • Early withdrawal penalty

Early Withdrawal Penalty

6 months of simple interest

Min. Opening Balance

$1

GreenState Credit Union is not a well-known bank but it has a terrific rate for a slightly shorter term 10-month CD. With no minimum deposit required, you can start saving with any amount.

The penalty for early withdrawal is 180 days of simple interest, which means on a short 10-month term, you’re going to give back all (or almost all) of your earned interest if you have to close early.

2. BrioDirect

BrioDirect

Certificate of Deposit

Member FDIC

APY

5.00%

Term

12 Months

Min. Deposit

$500

Our Rating: 4.6

★★★★

Pros


  • No fees
  • Excellent rate

Cons


  • Requires $500 min. deposit
  • Early withdrawal penalty

Early Withdrawal Penalty

3 months of simple interest

Min. Opening Balance

$500

BrioDirect has a variety of CD terms available, none better than the 12-month promotional CD above. There are no fees to open this CD but it does require a $500 minimum deposit.

A CD of this term with BrioDirect includes a simple interest penalty of 3 months if you close your CD early.

3. BMO Alto

bmo alto

Certificate of Deposit

Member FDIC

APY

5.05%

Term

12 Months

Min. Deposit

$0

Our Rating: 4.8

★★★★

Pros


  • No fees
  • Excellent rate
  • No minimum deposit

Cons


  • Early withdrawal penalty

Early Withdrawal Penalty

6 months of simple interest

Min. Opening Balance

$0

BMO offers one of the highest APYs available for a 12-month CD. Without a deposit requirement or a minimum balance, deposits can be any size, up to the $250,000 FDIC-insured maximum.

Make sure your deposit is liquid enough so you don’t have to close your CD early. Doing so incurs a 6-month simple interest penalty, which will wipe out most of your gains.

4. Capital One 360

Capital One

Certificate of Deposit

Member FDIC

APY

5.00%

Term

12 Months

Min. Deposit

$0

Our Rating: 4.5

★★★★

Pros


  • No fees
  • Excellent rate
  • No minimum deposit

Cons


  • Early withdrawal penalty

Early Withdrawal Penalty

3 months of simple interest

Min. Opening Balance

$0

Capital One 360 does everything well with its 12-month CD. There’s no minimum deposit requirement and the interest penalty is just 3 months (best on our list, but hopefully one you never activate).

This APY isn’t as high as other CDs in this list but Capital One is a well-known bank. For some people name recognition is more important than getting the highest rates.

5. Ally Bank

ally bank

Certificate of Deposit

Member FDIC

APY

4.50%

Term

12 Months

Min. Deposit

$1

Our Rating: 4.5

★★★★

Pros


  • No fees
  • Excellent rate
  • $1 minimum deposit

Cons


  • Early withdrawal penalty

Early Withdrawal Penalty

60 days of simple interest

Min. Opening Balance

$1

60 days of simple interest is a low penalty to be charged for closing your CD early. With All Bank and the 12-month CD, you’ll lose less interest than with any other CD here.

With the Ally Bank 12-month CD, you’ll find the best features, but it has the lowest interest rate on our list.

Highest 12-Month CD Rates by APY

If the only thing you’re after is the highest possible rate, here are the 25 best 12-month CD rates we could find out of more than 100 reviewed.

143 Results

USALLIANCE Financial 12-month CD
APY
5.40%
Min
$500
Max
-

NexBank 12-month Online CD
NexBank
12-month Online CD
APY
5.40%
Min
$25,000
Max
$100k

USALLIANCE Financial 12-month IRA CD
USALLIANCE Financial
12-month IRA CD
APY
5.40%
Min
$500
Max
-

CFG Bank 12-Month CD
CFG Bank
12-Month CD
APY
5.36%
Min
$500
Max
$250k

Finworth 12-months CD
Finworth
12-months CD
APY
5.35%
Min
$50,000
Max
$240k

NexBank 12-month Standard CD
NexBank
12-month Standard CD
APY
5.35%
Min
$10,000
Max
$25k

TotalDirectBank 12-month CD
TotalDirectBank
12-month CD
APY
5.35%
Min
$25,000
Max
-

Colorado Federal Savings Bank 12-month CD
APY
5.30%
Min
$5,000
Max
-

Fort Liberty Federal Credit Union 12-months Jumbo Share Certificate
Fort Liberty Federal Credit Union
12-months Jumbo Share Certificate
APY
5.30%
Min
$25,000
Max
-

Navy Federal Credit Union Special EasyStart Certificate12-month CD
Navy Federal Credit Union
Special EasyStart Certificate12-month CD
APY
5.30%
Min
$50
Max
$3k

Bask Bank 12-month CD
Bask Bank
12-month CD
APY
5.30%
Min
$1,000
Max
-

Prime Alliance Bank 12-month CD
APY
5.30%
Min
$500
Max
-

TAB Bank 12-month CD
TAB Bank
12-month CD
APY
5.27%
Min
$1,000
Max
-

First Internet Bank 12-month High Yield CD
First Internet Bank
12-month High Yield CD
APY
5.26%
Min
$1,000
Max
-

Seattle Bank 12-month CD
Seattle Bank
12-month CD
APY
5.25%
Min
$1,000
Max
$220k

Bread Bank 1-year CD
Bread Bank
1-year CD
APY
5.25%
Min
$1,500
Max
$1,000k

Forbright 12-month Online CD
Forbright
12-month Online CD
APY
5.25%
Min
$1,000
Max
-

Popular Direct 12-month CD
Popular Direct
12-month CD
APY
5.20%
Min
$10,000
Max
-

Rising Bank 1-Year Term CD
Rising Bank
1-Year Term CD
APY
5.20%
Min
$1,000
Max
-

Fort Liberty Federal Credit Union 12-months Share Certificate
Fort Liberty Federal Credit Union
12-months Share Certificate
APY
5.20%
Min
$500
Max
-

MainStreet Bank 1-Year CD
APY
5.15%
Min
$500
Max
-

Newtek Bank 12-month CD
Newtek Bank
12-month CD
APY
5.15%
Min
$2,500
Max
$250k

TAB Bank 12-month Business CD
TAB Bank
12-month Business CD
APY
5.15%
Min
$1,000
Max
-

Marcus by Goldman Sachs 12-month CD
APY
5.15%
Min
$500
Max
-

America First Credit Union 12-17 months CD
APY
5.15%
Min
$500
Max
-

12-Month CD vs High Yield Savings Account

When you look at the interest rates on this page, you may be asking “Why not just keep my money in an online savings account?” High-yield savings accounts have almost identical interest rates to 12-month CD rates. Is there a benefit to locking your money away for one year vs. earning the same interest in a liquid account?

The primary benefit of the one-year CD is in fact, locking your money away. Interest rates are not guaranteed with an online savings account. The money you have saved can be earning 1.30% APY today, and 1.15% APY tomorrow. Locking in a rate means for one full year, you know exactly what you’re getting. For the same reason I pre-pay for my heating oil every year, I also tuck away money in CDs.

How We Chose the Best 12-Month CDs

There were three primary factors that went into rating the best 12-month CDs we could find.

  1. Interest Rate (APY) – The most important factor in finding a good CD is the interest rate. The difference of just one percent can be thousands of dollars if you’re able to deposit the FIDC-insured maximum.
  2. Minimum Deposit Requirement – The best CDs are the ones that do not require a lot of money to open. The highest deposit minimum on our list is $2,500, which is still quite reasonable.
  3. Early Withdrawal Penalty – No one opens a CD with the intent of pulling the money out before it matures, but life happens. Some 12-month CDs will include a 12-month interest penalty, and none of those CDs were included here.

Banks we included in our review are as follows: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Credit Human Federal Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, GreenState Credit Union, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, mph.Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Ponce Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.

Frequently Asked Questions (FAQ)

Can I Add Money to a CD After I Open It?

After you have opened a CD, you cannot increase or decrease the amount of the deposit (unless it’s a very rare CD that allows it). If you have to close the CD early, you will sacrifice some of the interest earned.

Do I Owe Taxes on the Interest Earned in a 12-month CD?

Yes, you do. Depending on when the interest is added to your account, you can expect to receive a 1099-INT form that will detail the interest paid to you on your CD.

Can I Open Multiple CDs from the Same Bank?

Yes. You can even open multiple CDs of the same length from the same bank. However, the FDIC insurance limit is per depositor (per account type), not per CD so when you open many CDs from the same bank, your total insurance for all CDs will be $250,000.

Final Thought on the Best 12-Month CDs

Opening a 12-month CD in a high-rate environment (like the one we’re in now) is always a smart financial decision. Even smarter is creating a CD ladder to ensure that if you need liquidity, you’ll have it in a short amount of time.

All of the best 12-month CDs found above are 100% risk-free when you stay under the $250,000 FDIC-insured maximum so if you’re someone with more than that amount to deposit, make sure you do so by utilizing multiple institutions.

Editor’s Note: Make sure to check your local banks for the best 12-month CD rates as well. Sometimes the national brands can’t match what your bank down the street can provide.

Author

  • Rob Berger

    Rob Berger is the founder of Dough Roller and the Dough Roller Money Podcast. A former securities law attorney and Forbes deputy editor, Rob is the author of the book Retire Before Mom and Dad. He educates independent investors on his YouTube channel and at RobBerger.com.

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