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Best 1-Year CD Rates

Top Banks and Credit Unions With the Best Rates and Terms for a 1-Year CD

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We review more than 150 banks and credit unions to find the best rates available nationwide for 1-year CDs. We track annual percentage yields and re-evaluate the list every weekday. All accounts are available to the public and are insured by either the Federal Deposit Insurance Corp or the National Credit Union Administration. One-year CDs are an easy way to earn some extra interest on a chunk of your savings, while also safeguarding against you withdrawing it on a whim. 

For this list, we considered products that lock in deposits for 11 to 14 months. Our rankings are based primarily on the best APY. In the case of a tie, we then look at the CD with the shortest term, then with the lowest minimum deposit required to earn the APY. From there, we compare the penalties for early withdrawal. These factors allow us to ultimately decide which banks and credit unions earn their spots in our rankings.

Scroll down for the top 1-year CD rates available as of Dec. 7, 2022.

Best 1-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
State Bank of Texas 5.00% $25,000 30 days of interest
Spectra Credit Union (14 months) 4.85% $5,000 90 days of dividends
My eBanc 4.71% $5,000 3 months of interest
CFG Bank 4.65% $500 6 months of interest
INSBANK Online 4.65% $2,500 6 months of interest
Merrick Bank 4.65% $25,000 6 months of interest
KS State Bank 4.63% $500 6 months of interest
Michigan State University Federal Credit Union 4.60% $500 3 months of interest
First Internet Bank 4.59% $1,000 180 days of interest
Popular Direct 4.55% $10,000 9 months of interest

State Bank of Texas


The State Bank of Texas was established in 1987 with the goal of serving the lending needs of immigrants. A family-owned bank, it has four branches in Dallas and the surrounding area in addition to branches in four Chicago locations.

Online and mobile banking options allow customers to open accounts from anywhere. In addition to CDs, the State Bank of Texas offers checking and money market accounts.

Spectra Credit Union


Spectra Credit Union was founded in 1946 as Naval Research Lab Federal Credit Union to serve scientists at the laboratory. It changed its name to Spectra in 2021 to reflect its broader customer base.

Headquartered in Alexandria, Virginia, Spectra also has branches in Maryland and Washington, D.C. As well, it is part of the CO-OP network of shared branches and ATMs. Customers also can manage their accounts online or through an app for Android and Apple devices.

Membership is available to anyone who joins the American Consumer Council at a cost of $8.

My eBanc


My eBanc is an online-only division of BAC Florida Bank. Based in Coral Gables, Florida, BAC Florida Bank was established in the U.S. in 1973 as Popular Bank of Hialeah. It changed its name in 1979 to Popular Bank of Florida, then changed it again in 1998 to BAC Florida Bank. My eBanc was established as a digital division in 2013.

My eBanc refers to its CDs as time deposits and also offers checking, savings, and money market accounts, all of which can be opened and managed online and through its mobile app. Accounts are available to any U.S. citizen 18 years of age or older.

CFG Bank


CFG Bank is a privately owned and operated bank that dates back more than 90 years and is headquartered in Baltimore. As the 12th largest bank in Maryland, it serves mainly the mid-Atlantic region, but any U.S. citizen or legal resident who is 18 years or older can apply for a CD account. You’ll also need a valid Social Security number and a physical address in the U.S. CFG Bank offers CDs with multiple terms ranging from 12 months to 60 months. In addition, the bank has checking accounts, money market accounts, and more.

INSBank Online


INSBANK Online is the digital arm of Tennessee-based INSBANK. It offers just two types of accounts: money market accounts and CDs. CDs offer flexible terms ranging from three months to three years, allowing you to meet short- and medium-term savings goals. Accounts come with convenience features such as an online dashboard and private client advocates to answer your questions.

Merrick Bank


Merrick Bank has been around since 1997 and specializes primarily as a major issuer of Visa credit cards. The bank also provides personal loans and loans for boats and other recreational vehicles.

As far as CDs go, terms range from six months to two years.

KS State Bank


KS StateBank is based out of Manhattan, Kansas, and has been around since 1969. It still operates chiefly in the state today, although it has one additional branch in Phoenix, Arizona. It offers a wide range of account types that can be opened online.

Michigan State University Federal Credit Union


Just like its namesake, Michigan State University Federal Credit Union is based out of East Lansing, Michigan. Interestingly, it claims to be the largest university-based credit union in the world, and if you don’t qualify with some connection to Michigan State University, you also can join by paying a $10 membership fee (which will be donated to the MSU Alumni Association). Additionally, there’s no fee to open an account at the credit union, but you will need to deposit at least $5 into a Spartan Saver account.

First Internet Bank


As its name implies, First Internet Bank was the first FDIC-insured institution to operate entirely online, beginning in 1999. Its corporate headquarters are in Indiana.

First Internet Bank offers CDs in a variety of terms up to five years. In addition to CDs, there is a full suite of banking products and services including checking, savings, money markets, HSAs, and child accounts, as well as loans, credit cards, and business banking services.

Popular Direct


As a digital branch of Popular Bank, a full-service bank in the U.S., Puerto Rico, and the Caribbean, Popular Direct has more than 120 years of history. It is a subsidiary of Popular Inc. Popular Direct is focused on savings and CD accounts with CD terms ranging from three months to five years, and you can rest easy knowing your deposits are FDIC-insured.

Customers can manage accounts online or through an app available for both Android and Apple devices.

What Is a 1-Year CD?

A certificate of deposit (CD), offered by banks and credit unions, provides a fixed interest rate (typically higher than other account types) in return for the account holder agreeing to leave the deposit for a set amount of time. Because the rate is fixed, the account holder knows exactly how much the CD will earn when it matures.

For a 1-year CD, the account holder agrees not to touch the deposit for one year. At the end of the term, the full interest will be added to the deposit amount. The customer then has the option to withdraw the full amount or renew or change the CD.

Who Is a 1-year CD Best For?

A 1-year CD is appropriate for someone who wants to earn more interest than a typical savings account would offer, although occasionally there are savings accounts with even better rates than 1-year CDs. However, savings rates are variable, so if you think rates are likely to fall and you want to lock in a good one today, go with a CD.

A common reason to consider a 1-year CD might be if you’re saving for a trip or big event to take place next year. The idea is that it’s a short-term investment. Opening a CD helps you avoid the temptation of spending the money, and lets you earn a bit of interest while you wait for it to mature.

Typically, the longer the term, the higher the rate you’ll receive. A 1-year CD can be especially helpful with longer-term savings goals if you’re building a CD ladder. With a CD ladder, you buy CDs of varying lengths to mitigate the risks of locking all your money into one long-term CD.

You need to be comfortable with tying up the money for one year. That’s because there usually are early withdrawal penalties, and the last thing you want to do is lose out on those earnings.

What Are the Alternatives to a 1-Year CD?

If you’re looking for a savings option, a 1-year CD is just one of them. When choosing the best approach for you, the key is to think about your current financial situation, your goals, and your saving/spending habits. Beyond a 1-year CD, there are some other options to consider.

If you know you want to go the CD route, you may decide to go with a shorter or longer term, depending on your needs. Shorter-term CDs allow you access to your money sooner but probably will have a lower APY. Longer terms likely will earn more but will separate you from your money for a bigger stretch of time.

If you’d rather not tie up your money, you might consider an online savings account. Some APYs are comparable to or even higher than 1-year CD APYs. The difference is that savings account rates can change at any time. Also, if you lack self control when it comes to spending, the easier access that a savings account affords you might not work in your favor.

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