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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 earn their spots in our rankings. Here are the top 1-year CD rates as of Sept. 30, 2022.

Best 1-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
State Bank of Texas 3.85% $25,000 30 days of interest
Rising Bank 3.70% $1,000 3 months of interest
Bread Savings 3.60% $1,500 6 months of interest
Merrick Bank 3.60% $25,000 6 months of interest
Merchants Bank of Indiana 3.56% $1,000 3 months of interest
Banesco USA 3.55% $1,500 3 months of interest
BankPurely (13 months) 3.55% $1,000 6 months of interest
iGObanking (13 months) 3.55% $1,000 6 months of interest
Connexus Credit Union 3.51% $5,000 3 months of interest
Live Oak Bank 3.50% $2,500 3 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.

Rising Bank


Rising Bank is the online banking division of Midwest BankCentre, based in St. Louis. Its history dates back to 1906 when Midwest was known as Lemay Ferry Bank. In 2000, it changed its name to Midwest Bank Centre, and Rising Bank was launched in 2018. Rising Bank specializes in checking and savings accounts and CDs of varying terms. Checking and savings accounts require $1,000 to open and aim to offer interest rates competitive with other online banks.

Bread Savings


Bread Savings is part of Bread Financial, an FDIC-insured institution formerly known as Alliance Data Systems. Bread Savings offers savings accounts and CDs, while Bread Financial also offers lending options under the name Bread Loans in addition to multiple credit cards.

Bread has no brick-and-mortar locations, but customers can manage their accounts online or via a mobile app for Android and Apple devices.

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.

Merchants Bank of Indiana


Founded in 1923 as Greensfork Township State Bank, Merchants Bank has six locations in central and eastern Indiana. It acquired Symphony Bank in 2009 and took its current name a few months later. The bank is a subsidiary of Merchants Bancorp, headquartered in Carmel, Indiana, which also includes Merchants Capital Corp., Farmers-Merchants Bank of Illinois, and Merchants Capital Servicing LLC.

In addition to CDs, Merchants Bank offers an array of personal and business banking products. It offers home loans through its Merchants Mortgage division. Those who don’t live near one of its branches can open and manage accounts online or via an app available for Android and Apple devices.

Banesco USA


Banesco USA, founded in 2006, is part of Banesco International, which operates in 15 countries. You can get CDs with 6-month to 3-year terms. The bank also offers checking, savings, and money market accounts, along with loans. Through an automated voice system, you even can make payments by phone.

BankPurely


BankPurely is an online division of Flushing Bank, headquartered in Uniondale, New York. In addition to CDs, it offers checking, savings, and money market accounts through its online and mobile banking portals.

The bank promises to plant a tree for every account that is opened.

iGObanking


iGObanking is the online wing of Flushing Bank, an FDIC-insured commercial bank with branches throughout New York. It offers checking, savings, and money markets, as well as CDs. Though the traditional CDs come in terms of six months or one year, the bank also offers “GiftsforBanking” CDs that come with longer term lengths and require a higher minimum balance but reward customers with both interest and a free gift from a catalog.

Connexus Credit Union


Connexus Credit Union serves members nationwide through online banking and as a member of the CO-OP shared network. CO-OP and MoneyPass ATMs also are surcharge-free for members. The credit union is based in Wisconsin and has branches there as well as in Minnesota, Ohio, and New Hampshire.

Membership is available to residents of several communities in Minnesota, Wisconsin, and Ohio, and to anyone affiliated with one of multiple organizations, employers, or schools, including the Connexus Association, which anyone can join for $5.

Patelco Credit Union


Founded in 1936, Patelco Credit Union has multiple branches throughout Sacramento, San Francisco, and San Jose in California. Membership to the credit union is available to anyone nationwide who joins the Financial Fitness Association. Patelco will pay for your first year of membership to FFA, and it is $8 annually after that.

In addition to CDs, Patelco offers a full range of banking services, including checking, savings, and money market accounts, as well as loans, investment services, and more.

For those who do not live near one of Patelco's branches, banking can be done online or through its app, available for both Android and Apple devices.

Live Oak Bank


Live Oak Bank is a relative newcomer on the banking scene, opening in 2008. Since then, it has focused heavily on small business loans for niche industries, such as craft breweries, veterinary clinics, and solar energy companies. However, Live Oak has been expanding into the personal banking scene, and it’s got plenty of savings offerings to like.

You can choose CDs with term lengths of six months to five years, as well as an online savings account.

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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